This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – July 30, 2012 – Today, Zacks Equity Research discusses the U.S. Health Insurance, including UnitedHealth (UNH - Analyst Report), Humana (HUM - Analyst Report), Cigna (CI - Analyst Report), Aetna (AET - Analyst Report) and Genworth Financial Inc.(GNW - Analyst Report).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at
Revenue from managed-care plans of Medicare Advantage is expected to grow significantly as baby boomers retire. Medicare Advantage is a privately-run version of the government's Medicare insurance program for the aged and disabled.
Managed-care is expected to get a lot more attention as the federal and state governments try to reduce costs. The now-unsuccessful Congressional "Super-Committee" looked into trimming some of the funds out of the federal health care programs, but failed to reach a bipartisan agreement. Major cuts to the Medicare program, whenever it happens, will shift some of the costs to seniors.
This could, in turn, be good for health insurers, making their Medicare Advantage plans more attractive than traditional Medicare plans. Moreover, many individuals would look forward to supplementing government coverage with private insurance, boosting demand for Medicare Advantage plans. But reforming the government health care program has proven to be very difficult politically.
Until now, only two of the public providers – UnitedHealth (UNH - Analyst Report) and Humana (HUM - Analyst Report) -- control more than 10% of the market. However, we expect sharp consolidation in this market. Carriers in the health insurance sector are in a race to win Medicare Advantage market share and the fastest way of achieving the target is to acquire a company in the same business.
Following are some of the recent M&A activities in this arena:
Cigna (CI - Analyst Report) acquired HealthSpring Inc. for $3.8 billion in January this year. UnitedHealth's acquisition of XLHealth Corp, a sponsor of Medicare Advantage health plans in November 2011, is the next big deal, worth $2 billion. The acquisition of Preferred Care Partners (Preferred Care) and Medica HealthCare Plans (Medica) are pending. Earlier in 2011, UnitedHealth acquired Inspiris, which serves patients in Medicare, Medicaid and commercial insurance populations.
On October 1, 2011, Aetna (AET - Analyst Report) closed its acquisition of Genworth Financial Inc.'s (GNW - Analyst Report) Medigap business for $290 million.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339