Humana Inc

The medical care ratio of health insurance companies is calculated as the ratio of the total money spent in health care claims to premiums earned.

In the US, the private health insurance industry has been expanding its footprint in international markets. International markets are less penetrated and competitive.

UnitedHealth Group (UNH) operates Optum. It provides health services like health technology, health and well-being, and pharmacy services.

UnitedHealth Group is a leading managed healthcare firm in the United States.

During the fourth quarter of 2014, Eminence Capital lowered its stake in Humana (HUM). The company accounted for 1.33% of the fund’s 4Q14 portfolio.

Humana’s total enrollment is mainly enrollments in the MA program, a substitute for the original Medicare program, via private insurance companies.

The Cigna–Anthem merger deal will be subject to all sorts of headlines that will affect the spread. You can make a decent return trading around the position by keeping your head .

If the Cigna–Anthem merger closes, you end up making about $35 a share. If the deal breaks, then you would have to cover at $52 a share.

Humana reported revenues of about $54.3 billion in its 2015 results. This amounts to a 12% revenue growth in 2015, compared to ~$48.1 billion in 2014.

Scenario analysis  In the risk-arbitrage world, a 12.2% expected return means a deal that has a lot of risk. Arbitrageurs sometimes refer to risk as “hair.” This deal is guaranteed a second request, and the regulators may simply be unable to get comfortable with the transaction, no matter what the companies offer in the way […]

Eminence Capital exited a position in Pandora Media Inc. (P) that accounted for 2.58% of the fund’s 3Q portfolio.

All of JPMNX’s top holdings except CJPXX were trading below their 20-day and 100-day moving averages as of January 29, 2016.

UnitedHealth Group is, by revenue, the largest healthcare company in the world.

Fortis (FRTSF) is buying ITC (ITC) in the largest Canadian purchase of a US utility. Fortis intends to sell a 19% stake in order to help finance the transaction.

While the media caters to Millennial preferences, there’s one economic sector that’s shifting to a more seasoned crowd: healthcare stocks.

On Thursday, the Trump administration announced the withdrawal of the proposal to abolish rebates paid to pharmacy benefit managers by drugmakers.

In its first-quarter earnings press release, Humana (HUM) guided for Group & Specialty segment earnings of $300 million–$350 million.

On November 29, United Health Group’s (UNH) stock price closed at $282.55, which is ~8% growth from its close of $261.62 on November 23.

In December 2016, the U.S. Attorney’s office for the District of Massachusetts issued an indictment against six former Insys (INSY) employees.

PFE stock rose ~7.3% in 3Q17 and has risen ~11.3% YTD (year-to-date) as of October 16.

Volanesorsen Ionis Pharmaceuticals’s (IONS) volanesorsen is a drug designed to reduce apolipoprotein C-III production and triglycerides in patients with dyslipidemia. Akcea Therapeutics, a wholly owned subsidiary of Ionis, is engaged in pre-commercialization activities for volanesorsen, and will take care of the drug’s commercialization once it is approved by the FDA and the European Commission. The […]

WellCare Health Plans has updated its earnings per share guidance from the previously estimated range of $6.00–$6.25 to the new range of $6.55–$6.80.

In 1Q17, WellCare Health Plans’ (WCG) Medicare Health Plans business reported revenues close to $1.1 billion, which represents year-over-year growth of ~12.4%.

In 1Q17, WellCare Health Plans (WCG) reported revenues of ~$3.9 billion, which totals year-over-year growth of around 11.7%.

On April 28, 2017, WellCare Health Plans (WCG) completed the acquisition of Universal American Corp. This deal added 119,000 Medicare Advantage members from several major markets

Revenues for Jakafi rose more than 42.0% to $852.8 million in 2016, from $601.0 million in 2015.

Novartis (NVS) reported flat revenues at constant exchange rates during 4Q16 as well as in fiscal 2016. This was driven by growth in Sandoz revenues.

Due to the strong performance of Opdivo, the oncology segment has emerged as the largest revenue contributor for Bristol-Myers Squibb (BMY) in 3Q16.

The effects of repealing Obamacare Donald Trump is definitely not in favor of the Affordable Care Act, known as Obamacare. As he wants to repeal the act completely and replace it with another policy, the hospital sector fell on November 9, the day after the election. Trump believes that providing healthcare facilities to illegal immigrants costs […]

Centene has reported net revenue of $5,821 million in 3Q15, an increase of 5.7% compared to $5,506 million in 2Q15. Operating revenue increased 5.8% in 3Q15.

To strengthen their presence in international markets, health insurance companies have been involved in mergers and acquisitions with local insurance companies in these markets.

Centene projects that Health Net’s acquisition will help Centene realize pre-tax synergies worth $150 million by the end of the second year after the closure of the deal.

On July 2, Centene announced the acquisition of Health Net for a combination of cash and shares amounting to $6.8 billion. This includes the assumption of Health Net’s $500 million debt.

Humana’s (HUM) revenues from commercial enrollments increased by 28.4%, from $2.2 billion in 1Q14 to $2.8 billion in 1Q15.

Should the markets be happy about a later-than-expected rate hike? Or should they be worried that the FOMC’s optimism may spell the end of their golden run?

UnitedHealth Group (UNH) posted its 1Q15 earnings on April 16, 2015. Following the release, UnitedHealth Group’s share price increased by 3.6%.

Anthem’s mergers and acquisitions strategy mainly targets the company’s government-sponsored business.

For health insurance companies, the medical care ratio is the ratio of total money spent on healthcare claims to premiums earned—adjusted for tax and regulatory expenses.

Anthem’s medical care ratio declined from 87.8% in 2013 to 83.1% in 2014, as a result of its favorable enrollment mix.

Aside from the standard healthcare policies, players—like Centene—in the private health insurance industry (IYH) also offer specialty insurance.

The Cigna business model is more concentrated toward commercial enrollments but is diversified across various delivery platforms.

Cigna’s (CI) Global Supplemental Benefits segment accounts for about 9% of the company’s total revenues.

International expansion is a hallmark of Cigna’s business. Cigna has inked deals in Turkey, Belgium, Brazil, Japan, Taiwan, Thailand, et cetera.

Aetna’s recoverables and payables from the premium stabilization program amounted to $338 and $230 million, respectively.

In 2014, of Anthem’s three business segments, Commercial and Specialty accounted for 53.7% of total revenues, and Government Business contributed 46.3%.

Customer segments The players in the private health insurance industry (IYH) aim for a favorable enrollment mix to reduce taxes and other liabilities while at the same time generating sustainable profits. Accordingly, managed care organizations such as Humana (HUM), Aetna (AET), Anthem, Cigna (CI), and WellCare Health Plans (WCG) are increasingly focusing on government-sponsored and international enrollments to balance […]

Most of Cigna’s revenue comes from insurance for employer-sponsored as well as Medicare and Medicaid beneficiaries.

UnitedHealth Group (UNH) is a health insurance provider. It faces a unique combination of business risks, including business mix and competition risks.

UnitedHealth Group’s OptumRx segment provides PBM services to more than 30 million Americans. It manages about $40 billion in pharmaceutical spending annually.

Aetna (AET) earns about 38% of its revenue by providing health insurance services to government-sponsored enrollees.

UnitedHealth Group’s OptumHealth segment is responsible for implementing measures to improve the quality of service and patient satisfaction.

In the private health insurance industry, the operating expenses mainly involve the costs for providing hospital benefits and emergency services.

Aetna’s membership is mainly concentrated in the western US, followed by the Southeast, the Northeast, the Mid-US, and finally consolidated international enrollments.

The private health insurance industry in the US has been expanding its footprint in international markets. International markets are less penetrated and competitive.

Out of UnitedHealth Group’s (UNH) four business segments, UnitedHealthcare accounted for 71.3% of the company’s revenue.

Aetna projects that its value-based spending as a part of the total spending will rise from 25% in 2014 to 50% in 2018.

Managed care organizations (XLV) enter into a contract with a set of health care providers, or a provider network, to provide care for members at reduced costs.

Aside from the standard healthcare policies, players in the private health insurance industry also offer specialty insurance.

Aetna (AET) derives 58% of its operating revenues from its commercial business, which involves offerings such as fully insured health plans and self-insured health plans.

Out of Aetna’s (AET) three business segments, Health Care accounted for 95% of the company’s revenue.

Humana’s (HUM) fully insured enrollments remained almost stable at 1.2 million in the fourth quarter of 2013 and the fourth quarter of 2014.

With a market capitalization of $107.1 billion, UnitedHealth Group is the largest insurance provider in the US. It registered revenue worth $130.5 billion in 2014.

Humana’s employed and contracted primary-care physicians rose by 29.2% from 11,300 in 2013 to 14,600 in 2014.

Humana reported its fourth quarter 2014 financial results. The company reported revenue of $12.3 billion—an increase of 21% year-over-year.

There are minimum amounts of capital that a health insurance company should possess in order to protect its customers and investors from financial risk.

Humana is competing based on price and geography to capture a higher market share of the customers buying plans on exchanges.

Investment advisers or mutual funds are the main stakeholders in Humana, accounting for about 81.7% of its total ownership picture.

Humana’s pharmacy business covers about 9 million people, and 6 million of those are Medicare beneficiaries.

Humana’s core strategy is an integrated care delivery model. Its Healthcare Services segment provides the required ancillary services.

Humana’s retail insurance business segment contributes 66.5% of overall company revenues. Employer-sponsored programs follow with 27.6%.

Humana (HUM) is the third-largest health insurance provider in the US, with over 13 million customers. Humana is also 73rd in Fortune 500 rankings.

The operating expenses of the private health insurance industry depend on the design of health plans and on the life history, age, and health of enrollees.

The share of commercial revenues within the private health insurance industry’s total revenues decreased from 67.0% in 2007 to 54.3% in 2013.

45 states have only two dominant health insurers accounting for half of the enrollments, giving rise to local market health insurance monopolies.

The underwriting cycle results from the uncertainty of predicting healthcare expenses and the fluctuating participants in the health insurance industry.

The health insurance industry uses the medical cost trend as a benchmark to project future changes in medical costs and to set premium rates accordingly.

The Affordable Care Act requires health insurers spend at least 80% of premiums on health expenses for small group plans and 85% for large group plans.

Medicare Advantage is a health insurance program offered by commercial insurance companies and managed care organizations to Medicare beneficiaries.

As hospital utilization remains low, more employers are exploring the option of self-insurance to reduce their employee benefit costs.

The health insurance industry is sensitive to changes in the employment rate. Employer-sponsored insurance accounts for about half of spending.

The private health insurance industry generally focuses in states with lower use of medical products and services and a network of healthcare providers.

The health insurance industry runs on two business models: traditional insurance and managed care organizations.

The health insurance industry (XLV) offers a wide range of healthcare plans with varied payment options as per insurance enrollees’ requirements.

Employer-sponsored coverage is a key factor for nationwide enrollment trends of managed care plans and independent insurance plans.

The health insurance industry operates through two types of organizations: independent insurance companies and managed care organizations.

The health insurance industry mainly gives individuals a risk management tool. People can’t predict the extent or timing of their their healthcare expenses.

Eminence Capital opened a new position in Valmont Industries (VMI) that accounts for 1.48% of the fund’s portfolio.

Eminence Capital started a new position in Humana Inc. (HUM) that accounts for 1.97% of the fund’s portfolio. Humana is a healthcare company.

Eminence Capital disclosed a new position in KAR Auction Services Inc. (KAR) that accounts for 2.09% of the fund’s portfolio.

Eminence Capital, LLC is an asset management firm founded in 1998 by Ricky Sandler that manages approximately $5.2 billion on behalf of institutions and individuals.

Molina Healthcare, Inc. (MOH): Market overview Medicaid is a rapidly growing segment within healthcare, which should directly benefit MOH. In addition to typical market growth of mid-single digits, there are several supplemental drivers. Healthcare reform (Obamacare) Under current reform provisions starting 2014, Medicaid would expand coverage to additional 11 thousand uninsured. Based on its presence within […]

Molina Healthcare, Inc. (MOH): Revenue growth In general, Medicaid health plans grow revenue by increasing their membership or generating higher rates from state governments. The latter portion is often left up to negotiations between plans and states. States often have the final say, but given cost savings managed care can generate, they are loathe to bring […]

As one of the leading Medicaid-focused HMOs, MOH enjoys a strong foothold in one of the healthcare sector’s fastest-growing markets.