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UnitedHealth (UNH) Wins Medicaid Deal to Serve New Mexicans
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UnitedHealth Group Incorporated (UNH - Free Report) announced that it received Medicaid managed care contract from New Mexico Human Services Department ("HSD") to serve New Mexicans. The contract is likely to be effective from Jul 1, 2024.
The new contract will allow UnitedHealth Group to extend health care coverage and serve the diversified needs of New Mexico residents, who are members of the state’s Medicaid managed care program (Turquoise Care). It will also enable UNH to deepen its presence across states with a significant number of Medicaid enrollees. Apart from UNH, other managed care organizations were recently chosen by the New Mexico HSD to award Turquoise Care Medicaid contracts, which include BlueCross BlueShield, Presbyterian Health Plan and Molina’s New Mexico health plan.
Inevitably, contract wins boost the customer base and fetch health insurers with higher premiums, which remain the most significant contributors to their top line. The medical membership of UnitedHealth Group grew 3.1% year over year as of Jun 30, 2023. Besides, its Medicaid membership witnessed a year-over-year increase of 4.6% at the same time.
The strength of its Medicaid business has fetched numerous contract wins from time to time. In March 2023, the company won a contract from the Indiana Family and Social Services Administration. This was another commendable opportunity for UnitedHealth Group to penetrate a geography which serves around 100,000 Medicaid LTSS members. Contract wins like these are expected to help UnitedHealth Group achieve its 2023 revenue guidance in the range of $357-$360 billion.
UnitedHealth Group served as a Medicaid administrator in Mexico from 2013 to 2018, which makes it an experienced candidate to support the health of New Mexicans. Currently, UNH has 210,000 plus members enrolled in individual, employer-sponsored and Medicare plans in New Mexico. It also has a network of 11,000 physicians and 49 hospitals in the state.
Zacks Rank & Price Performance
UNH currently carries a Zacks Rank #3 (Hold).
Shares of UnitedHealth Group have lost 6.8% year to date compared with the industry’s 5.2% decline. Nevertheless, its strong fundamentals are likely to help shares bounce back in the days ahead.
The bottom line of Molina Healthcare surpassed estimates in each of the last four quarters, the average surprise being 7.2%. The Zacks Consensus Estimate for MOH’s 2023 earnings indicates 15.3% growth, while the same for revenues suggests a 3.4% rise from their corresponding prior-year actuals. The consensus mark for MOH’s 2023 earnings has moved 1.8% north in the past 30 days.
Ensign Group’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed the same on the remaining one occasion, the average surprise being 0.9%. The Zacks Consensus Estimate for ENSG’s 2023 earnings indicates 13.8% growth from the prior-year actual. The same for revenues implies 22.7% growth from the year-ago reported figure. The consensus mark for ENSG’s 2023 earnings has moved 0.2% north in the past 30 days.
The bottom line of HCA Healthcare outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 5.4%. The Zacks Consensus Estimate for HCA’s 2023 earnings indicates 9.1% growth, while the same for revenues suggests a 6.1% rise from their corresponding prior-year actuals. The consensus mark for HCA’s 2023 earnings has moved 0.3% north in the past seven days.
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UnitedHealth (UNH) Wins Medicaid Deal to Serve New Mexicans
UnitedHealth Group Incorporated (UNH - Free Report) announced that it received Medicaid managed care contract from New Mexico Human Services Department ("HSD") to serve New Mexicans. The contract is likely to be effective from Jul 1, 2024.
The new contract will allow UnitedHealth Group to extend health care coverage and serve the diversified needs of New Mexico residents, who are members of the state’s Medicaid managed care program (Turquoise Care). It will also enable UNH to deepen its presence across states with a significant number of Medicaid enrollees. Apart from UNH, other managed care organizations were recently chosen by the New Mexico HSD to award Turquoise Care Medicaid contracts, which include BlueCross BlueShield, Presbyterian Health Plan and Molina’s New Mexico health plan.
Inevitably, contract wins boost the customer base and fetch health insurers with higher premiums, which remain the most significant contributors to their top line. The medical membership of UnitedHealth Group grew 3.1% year over year as of Jun 30, 2023. Besides, its Medicaid membership witnessed a year-over-year increase of 4.6% at the same time.
The strength of its Medicaid business has fetched numerous contract wins from time to time. In March 2023, the company won a contract from the Indiana Family and Social Services Administration. This was another commendable opportunity for UnitedHealth Group to penetrate a geography which serves around 100,000 Medicaid LTSS members. Contract wins like these are expected to help UnitedHealth Group achieve its 2023 revenue guidance in the range of $357-$360 billion.
UnitedHealth Group served as a Medicaid administrator in Mexico from 2013 to 2018, which makes it an experienced candidate to support the health of New Mexicans. Currently, UNH has 210,000 plus members enrolled in individual, employer-sponsored and Medicare plans in New Mexico. It also has a network of 11,000 physicians and 49 hospitals in the state.
Zacks Rank & Price Performance
UNH currently carries a Zacks Rank #3 (Hold).
Shares of UnitedHealth Group have lost 6.8% year to date compared with the industry’s 5.2% decline. Nevertheless, its strong fundamentals are likely to help shares bounce back in the days ahead.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Medical space are Molina Healthcare, Inc. (MOH - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) . Each of these companies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Molina Healthcare surpassed estimates in each of the last four quarters, the average surprise being 7.2%. The Zacks Consensus Estimate for MOH’s 2023 earnings indicates 15.3% growth, while the same for revenues suggests a 3.4% rise from their corresponding prior-year actuals. The consensus mark for MOH’s 2023 earnings has moved 1.8% north in the past 30 days.
Ensign Group’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed the same on the remaining one occasion, the average surprise being 0.9%. The Zacks Consensus Estimate for ENSG’s 2023 earnings indicates 13.8% growth from the prior-year actual. The same for revenues implies 22.7% growth from the year-ago reported figure. The consensus mark for ENSG’s 2023 earnings has moved 0.2% north in the past 30 days.
The bottom line of HCA Healthcare outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 5.4%. The Zacks Consensus Estimate for HCA’s 2023 earnings indicates 9.1% growth, while the same for revenues suggests a 6.1% rise from their corresponding prior-year actuals. The consensus mark for HCA’s 2023 earnings has moved 0.3% north in the past seven days.