Humana turns to game theory for new Medicare price structure



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Gain in 2011: $ 32.87 (60%) Closing price in 2011: $ 87.61 Last year, investors turned away from this type of HMO stock, fearing the impact of a new health care review rule involving medical claim ratios. However, Humana has shown that it is capable of managing the new regulations and that in October, it has reported better-than-expected earnings and better than expected forecasts for 2012. Stephen Weiss, Partner at Short Hills Capital, "At Eight times the profits, you're to own a stock that is always cheap and very, very defensive

Photo: Humana.com

Gain in 2011: $ 32.87 (60%) Closing price in 2011: $ 87.61 Last year, investors turned away from this type of HMO stock, fearing the impact of a new health care review rule involving medical claim ratios. However, Humana has shown that it is capable of managing the new regulations and that in October, it has reported better-than-expected earnings and better than expected forecasts for 2012. Stephen Weiss, Partner at Short Hills Capital, "At Eight times the profits, you're to own a stock that is always cheap and very, very defensive

Humana executives announced that they were modeling a number of scenarios to determine the price of their Medicare drug plans for 2020, while the health insurance sector is waiting for the new Pharmaceutical benefits reimbursement regulations expected this spring by the Trump administration.

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