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Strategies & Market Trends : Value Investing

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E_K_S
To: Grommit who wrote (74883)1/18/2024 5:15:33 PM
From: Rarebird1 Recommendation  Read Replies (1) of 78753
 
People are going to Physicians quite a bit. The population is aging with greater life spans. Is it any surprise that medical costs are rising? Humana went all in on Medicare Advantage and those plans have come under scrutiny for ripping many people off by denying surgeries and special treatment when needed. The Federal Government is now in the regulatory drug business where prices of certain drugs are negotiated by Medicare. This is not your standard capitalistic healthcare. I would 't call it socialism, but it is moving in that direction.

Bottom line: these insurers are now under a lot more Federal regulatory scrutiny while an older population is going to Physicians and having surgeries performed at a rising rate.

It is not all that complicated to figure out why HUM came in light on the top and bottom line with a disappointing outlook. UNH had a better quarter than HUM so perhaps the management of HUM is partly to blame too.

HUM raised a yellow flag when they wanted to merge with CI.

Now we know why or better yet, have confirmation.
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