Would you buy today? Pre-market is showing around $190 but I would guess that at the open it will be much higher since the sales price indicated pricing at or around $230. Only have $5400 available to buy so its only going to be around 27 shares.
Humana Stock
- Thread starter BankerCat12
- Start date
The big question is whether the Justice Dept. will oppose the merger. There are only three major players for Medicare business in about half of the states. This would cut it to two. If Justice opposes, you might have a long wait for your $230 price target.
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No. That's UK Memphis's other handle. He's the paddock investment guru. I'm from the good end of the state.
The stock popped 40 points the first of June on the rumor, to 220, since then it has gradually receded back to 191 which is where it is as I type this.
I tend to agree with DSmith, this is going to be a tough one to get FTC approval on.
I tend to agree with DSmith, this is going to be a tough one to get FTC approval on.
Truthfully I hope it does not. My wife is a pharmacist there and Aetna has a contract with a RX company thru 2019. Would Humana try to sell that division prior to the sale to make it more appealing to Aetna? She loves her job there. Happy wife=happy life.
Aetna's CEO says that they plan to make divestitures so that the deal will be approved.
http://www.msn.com/en-us/money/comp...ntitrust-concerns-over-humana-deal/ar-AAcCgYY
http://www.msn.com/en-us/money/comp...ntitrust-concerns-over-humana-deal/ar-AAcCgYY
Not that I am an expert on any of this, but when all of the Big 5 merger talk started to heat up I read a couple articles that broke down the product lines and where each of the insurers got their business. Humana was definitely the odd ball when compared to the other 4, which is probably why it was the obvious takeover target. While obviously with a merger this large the combined company will have to divest something, but at the end of the day I think it goes through.
My wife's healthcare technology company Altegra went into agreement today to be aquired by Emdeon for 910 million. Really sucks as she liked her job and makes good money. Looks like they will cut a lot of people from Altegra. Humana was in talks to buy Altegra back around January but fell through. It's a double whammy for us as I will lose my job July 31.
The transaction will probably take place and will make Aetna the largest producer of Medicare Advantage plans. I believe there will be major changes in the MA market and there should be, but probably not in the way I hope. MA companies have been overcharging Medicare for years now and Medicare knows it, but the majority of Congress, on both sides of the aisle, don't want to make waves because they want he MA product to be a huge success for companies to continue to market it.
I am an advocate for Seniors and what gets me is that the MA companies are making more money per patient even though Medicare has cut the base rate on which they are paid. They do this by circumventing the rules on how they are paid by "patient risk". However, MA companies are continuing to cut the care for Seniors with higher deductibles, higher out of pocket costs, and, in most areas, higher premiums. Many Medicare recipients have no other choice but Medicare Advantage or just Medicare alone which only pays about 80% of outpatient treatment because they can't qualify for a regular Medicare Supplement due to health issues. That is even more true with what we call "underage" Medicare recipients, those under 65 and on Medicare due to disability, whom very rarely qualify for a regular Medicare Supplement and when they do, they pay a much more hefty premium. That is why Medicare Advantage is so important to a lot of Medicare recipients.
What I'm attempting to get at is all of these companies that have a large base of Medicare Advantage clients would "take a bath" if and when these consumer groups and some members of Congress start becoming more vocal that Medicare is paying out more than they should to these companies. If and when that happens, Medicare Advantage could "bite the dust" as many Congress members fear. Many companies would simply raise premiums and cut benefits and see how it flies. Others would just simply leave the market because the overhead expense would be too great. This would leave a large void in the market for those Seniors that I described above and politicians corporate constituents that pay for their campaigns.
This coming October, when Open Enrollment starts and companies release their plans to the public, could be a big indicator of the future in the MA market. I am looking for higher premiums and less benefits...just how much yet will be determined. I am inclined to wonder if that is one of the main reasons Humana decided to sell.
I guess if you invest in these type companies, you may have time to get out if you watch what's going on in the market.
I am an advocate for Seniors and what gets me is that the MA companies are making more money per patient even though Medicare has cut the base rate on which they are paid. They do this by circumventing the rules on how they are paid by "patient risk". However, MA companies are continuing to cut the care for Seniors with higher deductibles, higher out of pocket costs, and, in most areas, higher premiums. Many Medicare recipients have no other choice but Medicare Advantage or just Medicare alone which only pays about 80% of outpatient treatment because they can't qualify for a regular Medicare Supplement due to health issues. That is even more true with what we call "underage" Medicare recipients, those under 65 and on Medicare due to disability, whom very rarely qualify for a regular Medicare Supplement and when they do, they pay a much more hefty premium. That is why Medicare Advantage is so important to a lot of Medicare recipients.
What I'm attempting to get at is all of these companies that have a large base of Medicare Advantage clients would "take a bath" if and when these consumer groups and some members of Congress start becoming more vocal that Medicare is paying out more than they should to these companies. If and when that happens, Medicare Advantage could "bite the dust" as many Congress members fear. Many companies would simply raise premiums and cut benefits and see how it flies. Others would just simply leave the market because the overhead expense would be too great. This would leave a large void in the market for those Seniors that I described above and politicians corporate constituents that pay for their campaigns.
This coming October, when Open Enrollment starts and companies release their plans to the public, could be a big indicator of the future in the MA market. I am looking for higher premiums and less benefits...just how much yet will be determined. I am inclined to wonder if that is one of the main reasons Humana decided to sell.
I guess if you invest in these type companies, you may have time to get out if you watch what's going on in the market.
I work in ancillary services in healthcare and MA plans are awful. People get denied things all the time, and the reimbursements to our services are basically a loss every time.
It's the insurance companies that are making all the money. I have a lot of clients that have MA plans. We don't have many problems with claims being denied.
The insurers have a profit margin of 2-4%. The pharma companies make +-30%.........
I'm from there originally Bill but live in Texas now. And I'm not a stock guru as Beavis implies.
I would say the stock did not move as much because investors do not truly value the offer at $230/share because they do not feel the Aetna stock is worth what it is claimed to be worth and the downside risk on the Humana stock if the deal falls through is tremendous. I feel with the decreased earnings expectations Humana announced yesterday the stock would value out around $120 or so.
i just like the names of all the entities. sounds like transformer names. Megamed, Optegra, StarScreaMedical...
in all seriousness id love to see the formula for coming up with new names..."well, we need it to sound important, honest, efficient, and old. Inspire confidence with people that don't know better or have a choice, you know?" "Eh, eff it, lets go with stupid names and just not give anyone a choice." "Great!"
in all seriousness id love to see the formula for coming up with new names..."well, we need it to sound important, honest, efficient, and old. Inspire confidence with people that don't know better or have a choice, you know?" "Eh, eff it, lets go with stupid names and just not give anyone a choice." "Great!"
I like the mREITs right now, they pay high dividend yields (about 14%) that I reinvest, free money for me. The stock price doesn't move much but I like the high dividends. I hawk it a lot, so when it gets into the 7.50s is when I buy. Right before they declare the dividend, there's usually a run up to 8.00, then it will fall again. I've done pretty well over the last two years with it.