Heard on the Street: That knee surgery you postponed helped insurance giants. Now it could hurt them.
‘ John Ransom noted it will be tough for managed care companies to replicate another year of low costs, with many of the doctors and nurses that escaped on “revenge travel” in the third quarter coming back, boosting capacity. He also highlighted the “triple threat” of the flu, RSV and Covid hurting insurer profits in the winter months.
It is likely UnitedHealth is being overly cautious with its estimates. UNH is well-known for providing conservative outlooks and then consistently beating those projections. Mr. Wilkes wrote that UNH usually improves earnings guidance by 3% to 6% and it is likely being cautious on medical costs. A key question is just how big the backlog of procedures really is. Many analysts were mystified by the low utilization this year even as Covid-19 eased. Mr. Ransom, who is still positive on the sector, said he doesn’t buy “the notion that there is some long-dated elective backlog that will emerge—we think we would have seen it by now.”
Still, the challenge for investors is that managed care companies have delivered excellent returns that will be tough to keep replicating.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
49ers: Elijah Mitchell ruled out vs. Saints with knee injuryMitchell missed two months earlier this season with an MCL strain.
Read more »
Nets lose Ben Simmons to knee injury against MagicThe latest setback – checking out with nine minutes left in the first half against the Magic – comes just as he was finding his stride for the first time as a Net.
Read more »
Ben Simmons Leaves Game With Knee Soreness, Ruled Day-To-DayBen Simmons Leaves Game With Knee Soreness Ruled Day To Day - RealGM Wiretap
Read more »
England and Wales players take a knee in World Cup matchEngland and Wales were among seven European nations that had intended to have their captains wear “One Love” armbands in support of inclusivity at the tournament in Qatar. But they had to abandon those plans after FIFA threatened sanctions.
Read more »
Brain op patients at Birmingham NHS trust suffered unnecessarily - reportAn investigation into what happened at a Birmingham NHS trust says surgery should remain suspended.
Read more »
Ways to known when a recommended surgery is necessaryFor a serious medical condition, surgery is often a lifesaver. However, a new report shows doctors performing thousands of unnecessary procedures. 12 On Your Side's Marilyn Moritz has advice on how to have a frank discussion with your doctor
Read more »