Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

California Concentrated Health Net Is Poised To Benefit From Medicaid Expansion

I first wrote about Health Net (NYSE:HNT) last August after doing research which led me to conclude that the stock had a considerable EPS ramp coming this year. I continue to stand by that view, but I think the elements of the story have changed a bit. Last year, I felt the growth in dual-entitlement eligible individuals in Health Net's coverage footprint represented a significant profit opportunity. And longer term, they still do. This is a population that the market seems to be watching carefully as a measure of HNT's growth prospects. But while I think Duals represent a real long-term growth driver, in the short-term though, I am more excited about the expansion of Medicaid in California...

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