After the closing bell on Monday, the Centers for Medicare & Medicaid Services (CMS) announced its final 2014 Medicare Advantage rates. Now, a bunch of health insurers will receive more compensation than previously expected. As such, Jefferies raised the price targets on some health insurers.
“The rate starting point (NPCMAGP) of 2.96% was a significant improvement from the preliminary -2.3% announced in mid-February thanks to the doc fix,” a Jefferies analyst noted. “In fact, this has to be viewed as the best case scenario for 2014.”
“In order of exposure; HUM, UNH, CI, AET and HNT should benefit further from this announcement,” the analyst added.
Jefferies Price Target Increases:
The Bottom Line