Another Sign ObamaCare Works: Wellpoint Boosts Profit Forecast

[deleted-05292014 331]

http://www.forbes.com/sites/brucejapsen/2014/03/21/another-sign-obamacare-works-wellpoint-boosts-profit-forecast/

Wellpoint WLP +0.06% Inc. (WLP), one of the nation’s largest health insurance companies, raised its full-year earnings forecast, citing more than 1 million new health plan members related in part to new business from the Affordable Care Act.

When a company raises its earnings forecast, that means it will make more money than it originally thought. In Wellpoint’s case, the company raised its 2014 “earnings outlook from greater than $8.00 per share to greater than $8.20 per share,” company chief executive officer Joseph Swedish said this morning. Swedish cited “growth of 1 to 1.3 million net new medical members and mid-single digit percent increases in both operating revenue and operating gain.”

Wellpoint specifically cited its ability to successfully manage new business coming from Americans signing up for coverage via the state and federal marketplaces known as exchanges. President Obama last week said that enough Americans have signed up to private health plans under the health law that it will work even though there could be up to two million fewer Americans covered than the White House had hoped.

Wellpoint is a major operator of Blue Cross and Blue Shield plans, including those operated under the Anthem brand. In addition to selling health benefits to employers and individuals, Wellpoint is a major contractor to states and the federal government by providing coverage under Medicaid programs for the poor and the Medicare health insurance program for the elderly.

“While it is early in 2014, we are encouraged by results thus far across our businesses and we believe exchanges are tracking our general expectations,” Swedish said in a statement released this morning prior to addressing analysts and investors at a conference in New York. “We are building on the positive operating momentum we’ve achieved across the organization over last year.”

Wellpoint’s rhetoric is a continuation of positive financial projections that were issued in January and February during fourth-quarter earnings from insurers including Aetna AET +0.42% (AET), Cigna CI -0.91% (CI), Humana HUM -1.51% (HUM) andUnitedHealth Group UNH -0.23% (UNH).

Insurance companies for much of this quarter having been telling Wall Street that they are going to be able to manage the first year of risk from newly insured customers buying subsidized private health plans via government-run exchanges. Under the law, millions of Americans can get subsidies to purchase an array of health plan choices.

Swedish also indicated the business outlook for the insurance company wouldn’t be short-lived.

“Our outlook also remains prudent in light of the dynamic nature of the marketplace, and we believe this is a point from which we will grow in the future,” Swedish said. “We have entered a period of tremendous change across the health care system and are confident that WellPoint has the leadership, assets and strategy to drive profitable growth over the next several years.”

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One of my former companies I used to work for, for over a decade. When ACA passed, I expanded my portfolio and added several other healthcare companies and they have been doing great. Makes perfect sense, provide a service that people have to sign up for - it's a winning model no matter how you look at it from an investment stance.

I love "socialism" thanks Obama

[Darnell 8,479]

ah?

Still, increased sales, increased revenue, regardless of why, usually makes a stock price increase.

Thanks, Obama !!!

[luckytxn 2,265]

Yes and people like me that now pay 100% more in premiums does help companies profit margins.

Thanks Obama for raping the American public...again.

ah?

Still, increased sales, increased revenue, regardless of why, usually makes a stock price increase.

Thanks, Obama !!!

[deleted-05292014 331]

Yes and people like me that now pay 100% more in premiums does help companies profit margins.

Thanks Obama for raping the American public...again.

Really? How's that? I mean I know there is a % of some people whose premiums went up but are you saying that starting this year yours went up by 100%? You know you could always drop your insurance carrier and get something cheaper on an exchange, hopefully you pick WLP thanks in advance

btw just like the commercials, you have until March 31st so git her done!

[Pooky 3,840]

And this is a reason to celebrate?

Insurance companies serve only to leech money from the healthcare system, thus diminishing the sum available to provide actual healthcare. They should have no place in the primary level of our healthcare system.

That the PPACA gives rise to predictions of record profits for a health insurance provider should be a cause for concern for everybody.

[luckytxn 2,265]

Yeah my premiums went up 100%. Find that funny? Good because your hero is the reason. He is a weak man. Must have been the dope he smoke and the coke he loved so much.

Really? How's that? I mean I know there is a % of some people whose premiums went up but are you saying that starting this year yours went up by 100%? You know you could always drop your insurance carrier and get something cheaper on an exchange, hopefully you pick WLP thanks in advance

btw just like the commercials, you have until March 31st so git her done!

[luckytxn 2,265]

The Socialists loving that the rape of the American workers is happening. Pathetic.

And this is a reason to celebrate?

Insurance companies serve only to leech money from the healthcare system, thus diminishing the sum available to provide actual healthcare. They should have no place in the primary level of our healthcare system.

That the PPACA gives rise to predictions of record profits for a health insurance provider should be a cause for concern for everybody.

[deleted-05292014 331]

And this is a reason to celebrate?

Yes. I have never cried over making money.

Hey I'm all for single payer, socialized healthcare system similar to what many countries in Europe and Scandinavia enjoy - developed nations like Singapore. If we had gone that route I would have sold off all of my healthcare stock and invested in something else but I follow the money and you should too.

[LibCampFireClub 635]

The liberal perception of 0-health

[deleted-05292014 331]

Yeah my premiums went up 100%. Find that funny? Good because your hero is the reason. He is a weak man. Must have been the dope he smoke and the coke he loved so much.

No I don't find it funny if you are facing economic hardships.

What I do find funny is that while you and others run around like a chicken with it's head cut off screaming socialism, socialism, socialism - capitalist are making money off of you. If you were wiser, you would support a single payer system and maybe your premiums wouldn't be so high but that's dumb because that's socialist right?

[LibCampFireClub 635]

If you were wiser, you would support a single payer system and maybe your premiums wouldn't be so high but that's dumb because that's socialist right?

Another covert attempt to admit that 0-care is a complete and utter failure as advertised. You libs must get awfully tired of having to move your leader's bar.

[deleted-05292014 331]

Another covert attempt to admit that 0-care is a complete and utter failure as advertised. You libs must get awfully tired of having to move your leader's bar.

Obamacare, like any other piece of legislation will evolve over time. It will get better and it will serve the needs of all Americans. Long after Obama is gone, people will continue to benefit from it just like Medicare, Medicaid, Social Security the GI Bill and other government programs - the same ones that Republicans objected to when they were created.

So doesn't really matter what you think. Your opinion means nothing. It's the law, it's here to stay. You don't like it well then your team shouldn't have picked Mittens to run for office.

[Ban Hammer 13,604]

[deleted-05292014 331]

We do want it though. President Obama ran on the ACA. Our democracy worked. People elected him and We the People elected a Congress to pass the law.

The majority has spoken. Republicans under Bush could have passed their own healthcare reform but they were too busy inventing WMDs and invading sovereign nations.

[Pooky 3,840]

So doesn't really matter what you think. Your opinion means nothing. It's the law, it's here to stay. You don't like it well then your team shouldn't have picked Mittens to run for office.

If it is the law, and if Congress makes the law, why does the President continue to make changes to the law in spite of Congress?

And yet, when Congress tries to change the law, they are derided by those who say they can't, because "It's the law."