Managed care company returns will be tough to keep replicating, WSJ says

Investors in managed care companies may see a challenge soon from the fact that such companies have delivered excellent returns recently that will be tough to keep replicating, David Wainer of the Wall Street Journal said in his Heard on the Street column. The pandemic years have been financially good for managed care firms, though increased medical loss ratios for such companies would mean higher costs, the author says, noting that hospitals have faced unprecedented margin pressures in recent years amid workforce exits. Publicly traded companies in the space include CVS Health (CVS), Centene (CNC), Cigna (CI), Health Net (HNT), Humana (HUM), Molina Healthcare (MOH), Elevance Health (ELV), UnitedHealth (UNH) and WellCare (WCG).Reference Link