Thu, Mar. 19, 10:34 AM
- According to Bloomberg, major providers of Medicare coverage like Humana (HUM +0.9%), WellCare (WCG +0.6%) and Centene (CNC +1.4%) are high on the acquisition radar of large insurers who have relatively modest exposure to the rapidly growing Obamacare-stoked space. Likely suitors would be Aetna (AET +1.3%) and Anthem (ANTM +0.3%).
- There hasn't been much M&A activity among health insurers due to the uncertainties surrounding the implementation of the Patient Protection and Affordable Care Act. Now that its implications are better understood, the number of deals should perk up.
- No bargains are out there, though. S&P's index of health insurers galloped 57% last year. The current valuations for Humana, WellCare and Centene are $26.9B, $4.1B and $8.3B, respectively, all at record levels since at least 2007.
- Anthem CFO Wayne DeVeydt says his firm will continue to make smaller deals although a larger purchase is not out of the question. Other firms declined to comment.
- Leerink Partners analyst Ana Gupte says a likely scenario is consolidation among the five largest health insurers: UnitedHealth Group (UNH +0.8%), Anthem, Aetna, Cigna (CI +0.6%) and Humana.
- Aging baby boomers, born between 1946 and 1964, are driving the increase in Medicare enrollment. Membership is expected to rise to 68.4M in 2023, up more than 25% from this year's 54.4M. Medicaid is projected to add 9.3M people over the same time frame.
Wed, Mar. 4, 12:11 PM
- Hospitals rally on comments from Supreme Court Justice Anthony Kennedy, often a swing vote in important cases. He says there is a powerful point to the Obama administration's argument that the Affordable Care Act would fall apart if the subsidies were ruled invalid.
- The Court is currently hearing arguments in the case King v. Burwell, which challenges federal subsidies in states that did not create their own health insurance exchanges. Its final decision will not be announced until June, though.
- Hospitals and health insurers have the most at stake. They have benefited greatly since the law was signed in 2010. To date, 11.4M Americans have signed up for coverage in 2015, giving both groups more paying customers and potentially cutting the number of non-paying emergency room visits. If the subsidies were ruled invalid then many people would drop coverage due to the higher cost.
- Related tickers: (HCA +6.2%)(THC +5.4%)(UHS +2.6%)(CYH +5.4%)(LPNT +3.3%)(SEM -0.9%)(SSY)(HUM +0.1%)(CI -0.4%)(CNC)(MOH +0.3%)(ANTM +0.5%)(UNH +0.3%)(MGLN +0.3%)(WCG +0.3%)
Wed, Feb. 11, 8:30 AM
- WellCare Health Plans (WCG +1.9%) Q4 results: Revenues: $3,414.8M (+40.0%); Total Premium: $3,404.5M (+39.9%); Total Expenses: $3,358.7M (+42.0%); Operating Income: $56.1M (-24.4%); Net Income: $7.7M (-82.1%); EPS: $0.18 (-81.4%).
- FY2014 results: Revenues: $12,959.9M (+36.0%); Total Premium: $12,915.5M (+35.8%); Total Expenses: $12,811.6M (+38.6%); Operating Income: $148.3M (-47.2%); Net Income: $63.7M (-63.7%); EPS: $1.44 (-63.8%); Quick Assets: $1,313.5M (-11.4%); CF Ops: $299.3M (67.3%).
- Total Medicaid Health Plans Membership: 2.310M (+31.3%); Total Medicare Health Plans: 417K (+43.8%); Medicare Prescription Drug Plans: 1.392M (+74.7%); Total Membership: 4.119M (+44.7%).
- 2015 Guidance: Adjusted EPS: $3.15 - 3.40; Premium Revenue: $13.5B - 13.8B; Medicaid Revenue: $8.5B - 8.7B; Medicaid MBR - 89.25% to 90.25%, Medicare Health Plans MBR - 85.00% to 86.50%; Medicare Health Plans Revenue: $3.95B - 4.05B; Medicare PDP Revenue: $1.0B - 1.1B; Medicare PDP MBR - 85.50% to 87.00%, Adjusted Administrative Expense Ratio - 8.0% to 8.2%.
Wed, Feb. 11, 6:45 AM| Comment!
Tue, Feb. 10, 5:30 PM
Wed, Jan. 28, 4:03 PM
- A study done by researchers from New York and Columbia Universities found that premiums were slightly higher for policies offered on state-run health exchanges where there were higher numbers of competitors, precisely the opposite effect that supposedly characterizes more intense competition.
- Overall, average monthly premiums were $5.71 higher per additional insurer (p<0.001). In addition, average monthly premiums were $3.18 higher per additional insurer for identical plans offered.
- The analysis focused on the prices for each unique insurance plan offered on the exchanges in each geographic rating area. The number of rating areas varied widely in the 34 states examined, from only one in NJ, NH and DE to 67 in FL.
- The authors acknowledge that the higher premiums may be due to higher cost areas (urban vs rural) where more insurers are located rather than a lack of competition.
- Related tickers: (NYSE:AFL) (NYSE:AIG) (NYSE:AET) (NYSE:CI) (NYSE:CNC) (NYSE:UNH) (NYSE:ANTM) (NYSE:MOH) (NYSE:HNT) (NYSE:HUM) (NYSE:WCG) (NASDAQ:MGLN)
Dec. 15, 2014, 4:16 PM
Nov. 5, 2014, 11:26 AM
- WellCare Health Plans (WCG +4.7%) Q3 results: Total Revenues: $3,407.5M (+36.3%), Premium: $3,337.9M (+34.7%); Toatl Expenses: $3,338M (+39.5%); Operating Income: $69.5M (-34.9%); Net Income: $19.3M (-69.8%); EPS: $0.44 (-69.7%); Quick Assets: $1550.5M (+4.6%); CF Ops: $179.4M (-21.9%).
- Medicaid Health Plans Membership: 2.252M (+28.2%); Medicare Health Plans Membership: 416K (+47.0%); Total Membership: 4.037M (+43.0%).
- 2014 Guidance: Medicaid Health Plans MBR - 90.00% to 90.50%, Medicare Health Plans MBR - 88.75% to 89.25%, Medicare Prescription Drug Plans MBR - 92.00% to 93.00%, Adjusted Administrative Expense Ratio - 7.7% to 7.8%.
- Q4 Guidance: Adjusted EPS: $0.60 to $0.70, Premium Revenue: $3.3B to 3.4B.
Nov. 5, 2014, 7:05 AM| Comment!
Jul. 25, 2014, 12:45 PM
Jul. 25, 2014, 11:05 AM| 2 Comments
Jul. 25, 2014, 10:53 AM
Jul. 25, 2014, 9:13 AM
Jul. 25, 2014, 7:41 AM
- WellCare Health Plans (NYSE:WCG) Q2 results: Total Revenues: $3,151.9M (+35.2%), Premium: $$3,087.7M (+33.9%); Medical Benefits Expenses: $2,834.3M (+40.6%); Total Expenses: $3,166.5M (+40.4%); Operating Income/Loss: ($14.6M) (-118.9%); Net Income/Loss: ($7.5M) (-16.0%); Loss per Share: ($0.17) (-15.9%); CF Ops: ($246.6M) (-407.4%).
- Medicaid Health Plans Membership: 2.16M (+20.2%); Medicare Health Plans Membership: 395K (+45.4%); Total Membership: 3..87M (+36.3%).
- 2014 Guidance: Adjusted net income per diluted share: $2.20 - 2.50 from $4.40 - 4.75; premium revenue: $12.3B - 12.4B from $$12.0B - 12.1B; adjusted administrative expense ratio: 7.8 - 7.9% from 8.4 - 8.5%; ACA industry fee expense: ~$137M; interest expense: ~$39M; effective income tax rate: 53 - 54%.
- WCG shares are down 15% premarket on light volume.
Jul. 3, 2014, 11:07 AM
- Saying that most custom-mixed medicines are either ineffective or overpriced, pharmacy benefit manager Express Scripts (ESRX +0.6%) plans to drop coverage for 1,000 drug ingredients found in compounded meds. The company states that the move will reduce employers' spending on compounded prescriptions by 95%. Express Scripts SVP Glen Stettin says, "What we are eliminating is, pure and simple, wasteful spending. These drugs are being used when there are other things available that are already approved by the FDA and are less expensive." The cuts will take effect on September 15, 2014 unless customers specifically ask to continue paying for them. Firms who want to opt out of the cuts must notify ESRX by Thursday (not sure if this means today).
- Predictably, compounding pharmacists lack enthusiasm for the move saying that it will deprive patients of much-needed medications.
- Related tickers: (UNH +0.7%) (CTRX +0.4%) (BIOS -0.2%) (WLP -0.7%) (AET +0.3%) (CI +0.6%) (HUM +0.2%) (CNC) (WCG +0.3%) (MOH +1.4%) (MGLN +0.5%)
Jul. 1, 2014, 12:34 PM
- WellCare Health Plans (WCG +1.2%) completes its acquisition of Medicaid assets from Healthfirst Health Plan of New Jersey. The assets are primarily associated with ~42,000 Healthfirst Medicaid members who are expected to transfer to WCG's Medicaid plan as well as certain provider agreements. Financial terms are not disclosed.
WCG vs. ETF Alternatives
WellCare Health Plans Incprovides managed care services to government-sponsored health care programs, focusing on Medicaid and Medicare services. The Company's business segments areMedicaid Health Plans, Medicare Health Plans and Medicare PDP.
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