Healthcare technology firm Clover Health Investments (CLOV) is offering its members a grocery benefit just like other Medicare Advantage (MA) players, according to a report by Yahoo Finance.
Based in Tennessee, Clover provides healthcare insurance services. It makes use of its proprietary technology platform to gather, analyze and structure behavioral and health data in order to reduce patient costs and improve medical outcomes.
The CEO of Clover Health Investments, Vivek Garipalli, said, “The company aims to provide its members access to healthy food via this benefit.” (See Clover stock chart on TipRanks)
Clover expects each member to get between $300 and $500 per year in grocery benefit. The members will be reimbursed the amount every quarter in a phased manner throughout the year.
The benefit is expected to receive approval from the U.S. Centers for Medicare and Medicaid Services by mid-September. Companies like Humana Inc. (HUM) and Centene (CNC) are already offering this benefit.
Clover’s shares closed 14.6% lower on Tuesday but gained 2.1% in pre-market trading on Wednesday.
Last month, Bank of America Securities analyst Kevin Fischbeck downgraded the rating on the stock to Sell from Hold but maintained a price target of $10, which is in line with the current price.
The analyst said, “The recent reduction in management’s growth targets for MA and Direct Contracting (DC) significantly hampers visibility into the company’s prospects.”
Overall, the stock has a Hold consensus rating based on 1 Buy, 1 Hold and 1 Sell. The Clover Health Investments price target of $9.67 implies 3.3% downside potential from current levels. Shares of the company have lost 36% year-to-date.
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