In this episode, Scott Becker shares 3 key points on the 5 biggest payers and their current performance YTD.
Summary
In this episode: Key Points on the Current Performance of the 5 Biggest Payers
In this episode, Scott Becker shares 3 key points on the 5 biggest payers and their current performance YTD.
Underperformance of the Five Largest Payers
The five largest payers have been performing poorly in the stock market this year, despite the overall stock market being up. This underperformance raises concerns, especially considering the profitable nature of these companies. It appears that despite their high profitability, the stocks of these payers have been unable to gain traction.
High Profitability and Medical Coverage Ratios
An important factor contributing to the underperformance of the biggest payers is the return of their medical coverage ratios to higher levels. These ratios indicate the percentage of healthcare costs covered by the payer. As these ratios rise, it puts pressure on the profitability of the payers, affecting their stock performance.
Tension Between Payers and Providers
Another significant factor impacting the performance of the largest payers is the tension between payers and healthcare providers. Reimbursement rates for hospitals and health systems have remained relatively flat, causing frustration among providers. This strained relationship between payers and providers may further affect the stock performance of the leading payers.
Note: This is an AI generated transcript, not edited by a staff writer and is solely intended for educational purposes. If you have any questions/concerns, reach out to podcasts@beckershealthcare.com
This episode aired on 06/21/2023 and can be listened here.
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