Elevance, CVS, UnitedHealth Struggle With Rising Medical Costs After COVID-19 Medicaid Policy Ends
Portfolio Pulse from Erica Kollmann
Elevance Health, CVS Health, and UnitedHealth Group are facing increased medical costs due to the end of a COVID-19 policy that maintained continuous Medicaid enrollment. This has led to lowered profit forecasts and earnings outlooks for these companies.
October 18, 2024 | 4:09 pm
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NEGATIVE IMPACT
CVS Health has cut its third-quarter earnings outlook due to elevated medical cost pressures in its Health Care Benefits segment.
CVS Health's revision of its earnings outlook due to high medical costs suggests a negative short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
Elevance Health has lowered its annual profit forecast due to high medical costs from Medicaid plans, which make up 20% of its membership.
Elevance Health's significant exposure to Medicaid plans, which are experiencing high costs, has led to a lowered profit forecast, indicating a negative short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
UnitedHealth Group has lowered its annual profit forecast due to ongoing challenges in its government-supported health insurance businesses.
UnitedHealth's lowered profit forecast due to Medicaid-related challenges indicates a negative short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80