Tag Archives: Medicare Advantage

Business, Finance, Occupation & Industry

6 Stocks that Stand Out in Today's Sizzling Stock Market

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By The Associated Press

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Richard Drew/AP

By ALEX VEIGA

LOS ANGELES — It’s summertime and the stock market is sizzling. The market reached an all-time high last week, torching its previous record set just before Memorial Day.

Even so, a handful of companies stand out. Six stocks — Amazon, Starbucks, UnitedHealth, Visa, Mastercard, and Discover Financial — notched their own records last week, helped by the growing confidence of American consumers.

Would buying these stocks now be a hot-weather impulse or a coldly calculated move?

All six have improving earnings outlooks, analysts say. Credit-card companies and UnitedHealth appear to be the best bets.

The six companies share similar traits that make them attractive. They are consumer-focused, with dominant market positions and growing revenue streams, says Fred Dickson, chief investment strategist at D.A. Davidson & Co.

Their importance to shoppers is crucial to their growth prospects. Americans’ confidence in the economy has reached its highest point in 5½ years. The housing recovery is strengthening. Job growth continues at a steady pace.

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When consumers feel better about the economy, they splurge on discretionary items like a Venti Caramel Macchiato from Starbucks or a new book or DVD from Amazon. And they pay for those items with credit cards.

Visa and UnitedHealth are the most attractive buys right now, says David Brown, chief market strategist at Sabrient Systems, an investment research firm.

The outlook for Discover and MasterCard is also good, particularly as consumer confidence improves. The companies’ biggest challenge remains staying competitive in a crowded field, he says.

While Brown expects Amazon to continue to dominate its market, he sees a big risk in buying the stock now.

“It’s a fine company, but I would want to enter it in a pullback — a big pullback,” Brown says. “It has, by far, the most downside.”

Here’s a brief summary of each stock:

UnitedHealth Group Inc. (UNH)

The stock of the nation’s largest health insurer has climbed more than 25 percent this year and hit an all-time high of $68.75 in trading Wednesday, according to FactSet.

Like other health insurers, UnitedHealth stands to benefit from the federal health care overhaul. The company will be able to participate in state-based health insurance exchanges designed to expand coverage to millions of uninsured Americans. The company is also the largest provider of Medicare Advantage plans, which are privately run versions of the government’s Medicare program for the elderly and disabled people.

Financial analysts, on average, expect the stock to move higher. Their consensus target price is $71.47, according to FactSet.

On average, the stock has a “Buy” rating from analysts polled by FactSet.

Amazon.com Inc. (AMZN)

Amazon’s stock price is up about 23 percent this year and touched an all-time high …read more

Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Obamacare To Slash Hundreds Of Billions From Medicare Advantage Over Next 10 Years

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By Sally Pipes, Contributor

Earlier this month, officials at the Centers for Medicare and Medicaid Services announced that they’d increase payments in the market-based Medicare Advantage program by 3.3 percent next year.

From: http://www.forbes.com/sites/sallypipes/2013/04/15/obamacare-to-slash-hundreds-of-billions-from-medicare-advantage-over-next-10-years/

Business, Finance, Occupation & Industry

Study on 27,000 Americans Shows SilverSneakers Program Keeps Medicare Advantage Members Healthier, M

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By Business Wirevia The Motley Fool

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Study on 27,000 Americans Shows SilverSneakers Program Keeps Medicare Advantage Members Healthier, More Active and Independent

SilverSneakers Solution Addresses Myriad of Challenges Facing America’s Aging Population

NASHVILLE, Tenn.–(BUSINESS WIRE)– According to findings from a three-year study published in the peer-reviewed journal, Population Health Management, the SilverSneakers fitness program is an effective approach to improving seniors’ physical and mental health. One of the study’s most significant findings was from a multiyear analysis that suggests the program helps to slow or may even reverse the declining health of older Americans. Several study measures indicate that SilverSneakers participants’ health and abilities are declining at a significantly slower rate than similar Medicare Advantage plan beneficiaries who do not participate in SilverSneakers.

The breakthrough study shows older adults who participate in SilverSneakers are healthier, higher functioning and more independent, when compared with similar adults enrolled in Medicare Advantage plans who do not participate in the SilverSneakers program. The research, conducted on 5,586 SilverSneakers participants and a matched group of 22,344 other Medicare Advantage beneficiaries for comparison, demonstrates SilverSneakers participants perform better relative to non-SilverSneakers participants in simple but important activities of daily living, such as bathing, walking, climbing stairs, dressing, eating, getting in or out of chairs and using the restroom.

“The results of this study highlight the promise as well as urgency for a national redefinition of our expectations for older age – one that encourages individuals, families and communities to invest in our future health and well-being through good nutrition, exercise, social interaction and community support and involvement,” said Joseph Coughlin, Director of the Massachusetts Institute of Technology’s AgeLab. He went on to comment, “Community-based solutions, such as SilverSneakers, represent a realistic, cost-saving and engaging strategy for older Americans to maintain their health and independence, improving the quality of their lives and their well-being, as well as all those who care about them.”

The study also clearly illustrates:

Business, Finance, Occupation & Industry

HMS Holdings Corp. to Report Q1 2013 Financial and Operating Results

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By Business Wirevia The Motley Fool

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HMS Holdings Corp. to Report Q1 2013 Financial and Operating Results

IRVING, Texas–(BUSINESS WIRE)– HMS Holdings Corp. (NAS: HMSY) today announced it will report its first quarter 2013financial and operating results at 9:00 a.m. ET on Friday, April 26, 2013. Supplemental financial information including the press release and presentation will be available at http://investor.hms.com/events.cfm at approximately 7:30 a.m. ET on April 26.

Individuals can access the webcast at http://investor.hms.com/events.cfm or listen to the call at (877) 303-7208. International participants can listen to the call at (224) 357-2389.

The webcast will be archived on the website at http://investor.hms.com/events.cfm. Individuals can listen to the replay at (855) 859-2056. International participants can listen to the replay at (404) 537-3406. The passcode is 31766466. The replay will be available at Noon ET on April 26 through 11:59 p.m. ET on May 2, 2013.

About HMS

HMS Holdings Corp., through business units including HMS and HDI, provides coordination of benefits and program integrity services for payers. These units serve health and human services programs in more than 40 states; commercial insurers, including Medicaid managed care, Medicare Advantage, and group health plans; the Centers for Medicare & Medicaid Services (CMS); and Veterans Administration facilities. As a result of our services, clients recovered more than $3.2 billion in 2012 and saved billions of dollars more through the prevention of erroneous payments.

HMS Holdings Corp.
Christine Saenz (investor relations), 212-857-5986
csaenz@hms.com
or
Francesca Marraro (media relations), 212-857-5442
fmarraro@hms.com

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The article HMS Holdings Corp. to Report Q1 2013 Financial and Operating Results originally appeared on Fool.com.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

What Will Obamacare Do to Medicare?

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By Brandy Betz, The Motley Fool

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Medicaid has stayed at the forefront of the Patient Protection and Affordable Care Act, or “Obamacare,” debate thanks to the number of states still battling against the proposed expansion. But how will the health care changes affect Medicare?

The short answer is that it depends on the type of Medicare. Traditional, government-backed Medicare includes parts A and B to cover both hospital stays and doctor visits. Private insurers offer prescription drug Part D plans and Medicare Advantage. Advantage plans typically combine the three lettered parts with some additional coverage areas, and they face the greatest risk of changes.

And it was the reversal of a seemingly adverse change behind a health plans rally last week. After an unfavorable government reimbursement decision for Medicare Advantage plans was reversed, shares of Humana and UnitedHealth Group surged to finish up 13% and 9% for the week, respectively.

Reactions like that suggest a deeper look into the specific changes posed by Obamacare. Here’s a quick guide to what the legislation will mean to government-administered Medicare plans, as well as their private insurance counterparts.

Parts A and B
Coverage for parts A and B will largely stay the same under Obamacare. But a few revisions kicked in last year that included free wellness checkups for the newly eligible. There’s also no longer a charge for part B patients needing flu shots or screenings for a range of conditions such as diabetes, cervical cancer, or high cholesterol.

The cost of these programs for beneficiaries will grow slower under Obamacare, thanks to overpayment restrictions for hospitals and physicians.

Part D
These prescription drug plans included a coverage gap, or donut hole, where patients had to pay out of pocket for a period. Obamacare will close those gaps by 2020 with increasing drug discounts that began last year.

Beneficiaries with active plans in 2011 received drug discounts during the donut hole that amounted to savings of 50% on branded drugs and 7% on generics. Here’s how those discounts will build up until the 2020 mark:

 

2012

2013

2014

2015

2016

2017

2018

2019

2020

Branded

50%

52.5%

52.5%

55%

55%

60%

65%

70%

75%

Generic

14%

21%

28%

35%

42%

49%

56%

63%

75%

Part D plans can be standalone or come bundled in a Medicare Advantage package. Let’s move into an MA explanation before we look at how the private insurers are involved in these two plan types.

Medicare Advantage
Predicting the future for MA is harder because the changes will vary according to the plan specifics and the insurer. It’s best for MA beneficiaries to contact the insurer for details.

What about MA from the standpoints of policy and business?

As I mentioned, Obamacare will limit overpayments to health care providers. But MA insurers also have to prove they’re using from 80% to 85% of revenues toward covering medical treatments. Those percentage numbers are called a medical

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

5 Ways Obamacare Will Fail

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By Sean Williams, The Motley Fool

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Whether you’re ready for it or not, the Patient Protection and Affordable Care Act, known collectively as Obamacare, is going to be fully implemented in less than nine months. The blatant rising costs of health care in this country, compounded by the successful implementation of socialized health care from our neighbors to the north, pre-empted President Obama and lawmakers to vote for change in 2010. Yesterday, in fact, I examined five ways that this bill will improve the scope of health care in this country.

However, not everyone is on board with the proposed changes set forth in this bill. In fact, the opposition has tried everything under the sun in order to get Obamacare repealed without any success.

Source: White House on Flickr. 

Today, I propose to turn the tables and examine five areas where Obamacare appears destined to fail.

1. Health insurers will keep most of their leverage.
If you recall, one of the key points I touched on yesterday where Obamacare is a boon for paying members is that it requires the insurance industry to spend at least 80% of its premium revenue on actual health services. This will cap the profit potential of insurers and is expected to cancel out unwarranted premium hikes under the PPACA.

Conversely, there’s little in the way of fines and regulations that will ultimately stop health insurers from raising their premiums or from shocking current members with huge premium hikes in advance of the full implementation of the PPACA in 2014. Obamacare was expected to take the power of premium pricing away from health insurers and put it into the hands of consumers in a competitive marketplace, but it appears it will be more of the same even after the bill is put into action.

A perfect case in point is the complete 180 that the Centers for Medicare and Medicaid Services, or CMS, pulled on Medicare Advantage providers last week. In February, insurers like Humana and Universal American that provide Medicare Advantage — a broader-care coverage plan for seniors that involves fewer out-of-pocket costs — were informed that their Medicare reimbursement rates would drop 2.3%. Following weeks of rigorous lobbying to lawmakers, the CMS reversed its decision from a 2.3% reduction in reimbursements to a 3.3% increase, claiming that it changed the scope by which it expected doctor pay to fall as its reasoning. In essence, by complaining and lobbying, the insurance industry orchestrated itself a nice raise and completely debunked the premise of Obamacare, which is to reduce the reliance of private insurers on the governments’ wallet.

2. Premiums will continue to rise.
The entire premise of creating the PPACA was to avert what seemed like an exponential growth in health-care costs due to high hospitalization and prescription drug costs. However, it appears that the usually conservative Society of Actuaries believes otherwise.

The SOA released a report (link opens PDF) two …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Dow's Top 3 Stocks This Week

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By Travis Hoium, The Motley Fool

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If you’d only read the headlines, you’d think it was a rough week on Wall Street. Employment numbers were terrible and the housing market may be slowing a bit, but stocks moved sideways once again. The Dow Jones Industrial Average fell just 0.09% this week, and the S&P 500 lost only 1%. Despite the declines overall, there were a few big winners on the Dow this week.

UnitedHealth Group jumped 8.5%, boosted by a surprise increase in Medicare Advantage reimbursements. The government initially proposed a 2.2% cut in rates, but after much lobbying from the industry, it did a 180 and decided to increase reimbursements by 3.3%. Across the board, insurers loved the news, and UnitedHealth won’t be under the same margin pressure some had feared in 2014.

AT&T was second on the Dow, climbing 3.6% for the week. Investors cheered when Facebook announced that the first Facebook Home-specific device, made by HTC, will be exclusive to AT&T. The pop on Thursday was probably overdone, though, because Home will be available on most Android phones and there doesn’t appear to be any long-term advantage for AT&T with Home. Friday was also the last day to own AT&T before getting a $0.45-per-share dividend, so that may have boosted the stock slightly late in the week.

Merck rounds out the top three this week, climbing 2.1%. Aside from a lawsuit against India’s Glenmark Pharmaceuticals over the potential infringement on two diabetes drugs, it was a fairly quiet week for Merck. The company got a bit of a boost when the Medicare Advantage reimbursement news came out, probably because investors are hoping margins won’t be squeezed further down the medical value chain. If insurers are generating less revenue, they’ll push for lower prices from pharmaceutical companies, so the higher rates may be an incremental positive for the company. Investors are also looking forward to earnings, which Merck will release on May 1.

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Medicare Advantage "Armageddon" Averted

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By David Williamson and Max Macaluso, Ph.D., The Motley Fool

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Everyone can exhale — for now. The Center for Medicare and Medicaid Services avoided disrupting the Medicare Advantage plans of millions of seniors and sparked a huge rally in health-insurance stocks. However, this fix is not without controversy, as it counts on bipartisan lawmaking to make it last.

In this video, health-care analyst David Williamson discusses what this means for the industry and investors in both the short and long term.

When President Obama was re-elected, shares of UnitedHealth Group and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand new premium report on UnitedHealth, The Motley Fool takes a long-term view, homing in on prospects for UnitedHealth in an Obamacare world. So don’t miss out — simply click here now to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “David Williamson and Max Macaluso, Ph.D.”, contentId: “cms.30282”, contentTickers: “NYSE:UNH, NYSE:HUM, NYSE:UAM”, contentTitle: “Medicare Advantage “Armageddon” Averted “, hasVideo: “True”, pitchId: “89”, pitchTickers: “NYSE:UNH”, …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Bank Stocks Drag Down the Dow

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By Travis Hoium, The Motley Fool

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It took a few hours to sink in, but investors sold off stocks after some weak economic data was reported this morning. ADP payroll data for March showed a 158,000 increase in jobs, which fell far short of both February’s 237,000 and the estimate of 200,000. So far we’re overlooking the fact that ADP revised February numbers higher by 39,000 and projecting the possibility of a weak jobs report on Friday.

The other data point worrying investors is ISM‘s nonmanufacturing index, which fell to 54.4 in March, below the 55.8 estimate. This still signals expansion but shows more weakness in the economy than it did a month ago and adds to weak manufacturing readings over the past few weeks. With about half an hour left in the trading day, the Dow Jones Industrial Average has fallen 0.68%, and the S&P 500 is down 1%.

Bank of America and JPMorgan Chase have done the most damage to the Dow, falling 3% and 2.6%, respectively. One of the concerning numbers in ADP‘s report was a slowdown in construction hiring, which has driven a lot of the economic recovery. Both megabanks are tied closely to housing, and increased construction signals a healthy housing market, so a slowdown is troublesome. Keep in mind that this is just one data point, and many economists weren’t expecting the economy to really pick up steam until the second half of the year, when the impact of tax increases and the sequester are no longer on the minds of consumers and businesses.

Merck is one of just four Dow components moving higher today, up 1.1%. There are likely two factors driving Merck higher today. First is the increase in Medicare Advantage reimbursements announced yesterday, which should keep Merck from feeling a bigger pinch from insurers. The second factor is that Merck is in a business that sees few swings in demand based on the economy. Investors are fleeing to stocks that won’t be hurt if the economy slows over the next few quarters, and Merck is a beneficiary of that flow of money today.

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons both to buy and to sell. To find out more, click here to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why the Dow (and banks) Are Getting Pounded Today

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By John Maxfield, The Motley Fool

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Here’s my favorite headline of the day: “Retail Investors Are Back! But Don’t Hit ‘Sell’ Yet,” courtesy of our friends over at CNBC. The point of the article is simple. It’s long been assumed by professional traders that the time to start selling out of a market is when mom-and-pop investors start getting in. If you haven’t already done so, I suggest you consider the implications of that.

With this in mind, it should be no surprise that the Dow Jones Industrial Average is tanking today. According to data cited in the article, mutual funds and exchange-traded funds recorded net inflows of $4.5 billion over the last week, adding to an already considerable influx since the beginning of the year. “It’s driven today by people who feel that they’ve been missing out, but we’re still in the early innings of retail investors coming back,” an analyst told CNBC.

Of course, the other explanation is that today’s triple-digit sell-off was triggered instead by a handful of disappointing economic releases. In the first case, payroll-processing company ADP reported that private-sector employment increased by only 158,000 jobs last month. Economists surveyed by Bloomberg called for a gain of 200,000. And in the second case, the Mortgage Bankers Association said this morning that mortgage applications dropped last week by 4% despite the fact that mortgages rates declined as well.

While there’s probably some truth to both, the performance of the Dow’s banking stocks today certainly adds credibility to the latter. With about an hour left in trading, JPMorgan Chase and Bank of America are the index’s worst-performing components, down 2.5% and 3%, respectively. Given the importance of mortgages and the associated fees to these businesses, this should be no surprise. In the fourth quarter of last year, JPMorgan originated $51.2 billion in mortgages, while B of A notched $22.5 billion — though both were dramatically outdone by Wells Fargo.

Alternatively, the best-performing stock on the Dow this afternoon is Merck , up 1.6%. As my colleague Dan Dzombak observed earlier, the pharmaceutical company’s performance today comes on the heels of the government‘s surprise decision to expand, rather than contract, the amount of support it’s offering to Medicare Advantage customers. According to Dan, “While [the changes] don’t benefit Merck directly as they would health care plan providers, higher reimbursements should mean that drug revenue will not fall as previously expected.”

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons both to buy and to sell. To find out more, click here to claim your copy today.

…read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

3 Dow Stocks Winning Today

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is down following a troubling private sector jobs report, having lost 67 points, or 0.46%, as of 1:15 p.m. EDT. Meanwhile, the S&P 500 is down 0.77% to 1,558 points.

There were two U.S. economic releases today.

Report

Period

Result

Previous

ADP private-sector jobs

March

158,000

237,000

ISM nonmanufacturing PMI

March

54.4

56

Source: MarketWatch U.S. Economic Calendar.

The one to pay attention is the ADP private-sector jobs report, as a weak Institute for Supply Management nonmanufacturing PMI had been expected.

Analysts had expected jobs growth of 215,000 in March, up slightly from February’s previously reported 198,000. In today’s report, however, February’s total was updated to 237,000 additional jobs. So when March’s jobs growth came in dramatically lower than that, the markets dropped.

ADP Change in Nonfarm Payrolls data by YCharts.

Small businesses added 74,000 jobs, while large businesses added just 47,000. Employment has been a positive so far this year, as both unemployment claims and jobs growth have been trending above last year’s levels. However, last week’s worse-than-expected unemployment report and today’s private-sector jobs report are worrisome. The government reports its jobs numbers later this week, which will include both public and private-sector jobs. We’ll have to wait and see what happens.

Today’s Dow leaders
Today’s Dow leader is Merck , up 2.4%. Merck was a top Dow stock yesterday after the government surprised investors by announcing that Medicare Advantage reimbursements will rise. While they don’t benefit Merck directly as they would health care plan providers, higher reimbursements should mean that drug revenue will not fall as previously expected.

This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons both to buy and to sell. To find out more, click here to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Dzombak”, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

UnitedHealth Dashes, HP Crashes

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By Jeremy Bowman, The Motley Fool

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The Dow Jones Industrial Average and S&P 500 touched new record highs today led by the health-care sector, which jumped following a surprise increase in Medicare Advantage payout rates.

The Dow crossed 14,600 for the first time, gaining 0.6% or 89 points, to finish at 14,662. After hours yesterday, the Center for Medicare and Medicaid Services reversed earlier signals that it would lower Medicare Advantage payouts by 2.2% and instead decided to raise them 3.3%. Not surprisingly, health-insurance stocks rallied across the board, with UnitedHealth Group gaining 4.7% to lead all Dow stocks. Humana, which is heavily dependent on Medicare payouts, jumped 5.5%, and Aetna gained 3.7%.

Factory orders for February were also better than expected, increasing 3% on expectations of 2.6%. January orders were also revised upward from -2% to -1%. On a similar note, auto sales from the Big Three hit their best sales level in five years in March on higher demand for fuel-efficient vehicles and pick-up trucks.

Not all stocks made headway today, though. Hewlett-Packard sank 5.2 % after Goldman Sachs downgraded the PC-maker to “sell” from “hold.” The investment bank said HP may be overbought after its recent run-up, adding that investors may be overly hopeful for a turnaround, considering its key PC and printer businesses continue to decline. Goldman also that HP will have to invest much of its cash flow in research and development, putting a further strain on profits.

Elsewhere, Procter & Gamble moved up 1.6% after the consumer-goods giant said it had achieved zero waste in 25% or 45 of its manufacturing facilities worldwide, with another 20 soon to meet the sustainable standard. P&G now uses 99% of materials that enter its factories, and the news serves as a reminder that P&G continues to innovate and lets consumer know they can feel good about buying P&G products.

When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth, The Motley Fool takes a long-term view, homing in on prospects for UnitedHealth in an Obamacare world. So don’t miss out — simply click here now to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow Moves Higher on the Back of These Stocks

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By Matt Thalman, The Motley Fool

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The Dow Jones Industrial Average rose higher by 89 points, or 0.61%, today, after positive factory orders data and a higher-than-expected Medicare reimbursement rate were announced this morning. The other two indexes also climbed but not quite as high as the blue-chip average. The Nasdaq managed to gain 0.48%, while the S&P 500 added 0.52% today.

The Commerce Department’s report on factory orders indicated that increased orders for aircraft and automobiles helped pull the average higher, even though machinery and equipment performed poorly during the month of February. For more about the report and a few stocks it affected, click here.

Now let’s dive into what stocks performed well this afternoon.

Shares of UnitedHealth boosted the Dow higher after jumping 4.7% today. The rise came as a result of the announcement that Medicare Advantage‘s reimbursements would be higher by 3.3% in coming years. This came after the Centers for Medicare and Medicaid Services previously announced that reimbursement rates would fall 2.2%.  

Other Dow components operating in the health-care industry also rose. Both Merck and Pfizer  climbed more than 1%, precisely gaining 1.26% and 1.35%, respectively. Not only will the insurance companies realize higher revenues and, hopefully, larger profits due to the increased reimbursement rates, but the drug manufacturers should also see revenues at least remain level. The large drug providers usually have negotiated rates with Medicare and this is a sign that they may have the ability to contract higher prices.

Another big winner today was Home Depot , whose shares jumped 1.94% after the company sold $2 billion worth of 10-year bonds at just 85 basis points over what 10-year Treasury notes are selling for. This is a great sign that the market believes in the long-term profitably of the company and should be encouraging to current shareholders. 

More Foolish insight

When President Obama was reelected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth, The Motley Fool takes a long-term view, honing in on prospects for UnitedHealth in a post-Obamacare world. So don’t miss out — simply click here now to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why the Dow Rallied to a Record Tuesday

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By John Divine, The Motley Fool

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Last week, Cyprus was causing headaches. Alas, today it was a driving force behind Wall Street euphoria, as the Mediterranean country now has until 2017 to get its fiscal woes straightened out. Taking a cue from European equities, the Dow Jones Industrial Average added 89 points, or 0.6%, to end at 14,662, an all-time record close.

Far and away the best-performing blue chip, UnitedHealth Group jumped 4.7% as widespread gains in health care providers also contributed to today’s bullish market. Companies like UnitedHealth that offer Medicare Advantage plans will be reimbursed by the government at much higher rates than analysts expected, news that investors heartily cheered today — health care ended Tuesday as the best-performing sector this year.

Just a day after a key executive announced his departure, Hewlett-Packard shares cratered 5.2% lower to register as the worst performer for the second day in a row. The pessimism today stemmed from Goldman Sachs , which downgraded the stock, claiming the company won’t be able to live up to earnings expectations. 

Having fallen 10% in the past five trading days, Zynga shares took a hit today but rose big after hours after a top Zynga executive announced his departure from the company following a disappointing year of mobile investments and performance. Not only will the game developer refresh its mobile look, but Zynga is also set to launch its first real-money betting services in the U.K. this week.

Lastly, U.S. carmaker Ford rose nearly 1% after showing signs of renewed vitality in its business. Auto companies and the real estate market — two areas that took severe hits in the recession – are now staging legitimate comebacks. Today, Ford announced its best month of sales in more than five years, spurred by the popularity of its trucks and SUVs.

Worried about Ford?
If you’re concerned that Ford’s turnaround has run its course, relax — there’s good reason to think that the Blue Oval still has big growth opportunities ahead. We’ve outlined those opportunities in detail, in the Fool’s premium Ford research service. If you’re looking for some freshly updated guidance to Ford’s prospects in coming years, you’ve come to the right place — click here to get started now.

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Obamacare Falls Into Place, and Health Insurers Rejoice

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By Brandy Betz, The Motley Fool

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The future of the Patient Protection and Affordable Care Act became clearer over the past few days. The government has formalized financial details pertaining to Medicare Advantage rate cuts and for the future Medicaid expansions.

Health insurers popped before market close Monday as investors awaited the Medicare Advantage announcement. The gains continued after Tuesday’s open, with Humana and UnitedHealth Group leading the S&P 500 with gains of around 5% today.

What do the finalized decisions mean for the future of these government-sponsored plans?

Medicare Advantage rates rise
Medicare Advantage plans won’t suffer the rate cuts in 2014 that the Centers for Medicare and Medicaid Services proposed in February. Participating insurers will instead receive a 3.3% increase in payment reimbursements.

The CMS previously proposed a slash, which sent Humana plummeting 10%. But opponents pointed out that the reduction was based on the assumption that Congress would approve a physician rate cut, which hadn’t happened in the past decade.

Humana has the most reason to celebrate, since its Medicare Advantage segment accounted for 53% of overall revenues in 2012. But UnitedHealth purchased XLHealth last year to increase its Advantage presence. With so many factors still undecided, the rate finalization offered a rare bit of good news for insurers.

Medicaid funds secured
In other Obamacare news, the Department of Health and Human Services recently formalized federal Medicaid financing plans that put the feds on the hook for 100% of expansion costs for the first three years, starting in 2013. The payments will gradually decrease to the permanent rate of 90% by 2020.

The information matched the figures that HHS had touted for months as it tried to get more states onboard with the expansion. But the majority of states remain either on the fence or firmly opposed. Expansion would broaden the coverage umbrella to include patients below age 65 who have income that’s 133% above the federal poverty level.

Many continue to pursue waivers that would allow for the use of federal money in purchasing private plans. The HHS has said the option remains and extended a waiver to Arizona. But other states have found that approval isn’t guaranteed.

WellPoint is positioned to benefit from the potential expansions thanks to the Amerigroup acquisition last year, which increased its Medicaid presence.

Foolish final thoughts
Health-care investors — and wonks — face an interesting few months of watching the ACA plans continue to fall into place. The Advantage rate turnaround should encourage some optimism. Potential Medicaid benefits for insurers will become somewhat clearer once more states make their decisions. But that could become a long wait, since there’s not a deadline on opting in or out of the expansion.

Regardless of how the Medicaid expansion pans out, there’s one macro trend Warren Buffett has referred to as “the tapeworm that’s eating at American competitiveness”. What was he referring to? Find out in our free report: “What’s Really Eating at America’s Competitiveness.” You’ll also …read more
Source: FULL ARTICLE at DailyFinance

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UnitedHealth Group Leads the Dow Higher

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By Travis Hoium, The Motley Fool

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Most stocks have moved in trading today after the Department of Commerce reported a 3% rise in factory orders in February. As of 3:25 p.m. EDT the Dow Jones Industrial Average is up 0.47%, while the S&P 500  has gained 0.4%. Interestingly, gains weren’t spread evenly among stocks today, and there were some wild moves from some of the largest companies on the market.

UnitedHealth Group is up 4.8% today, leading the Dow higher. The Centers for Medicare and Medicaid Services pulled a 180 today, announcing an increase in Medicare Advantage reimbursements of 3.3%. The initial proposal was for a 2.2% cut, which made insurers lobby for higher rates, even threatening to drop coverage. The lobbying worked, and UnitedHealth is one of many medical insurers that have made significantly gains today.

When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth, The Motley Fool takes a long-term view, honing in on prospects for UnitedHealth in a post-Obamacare world. So don’t miss out — simply click here now to claim your copy today.

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Source: FULL ARTICLE at DailyFinance

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Monster Car Sales Fuel Stocks

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By John Maxfield, The Motley Fool

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Stocks are broadly higher today on the back of impressive March auto sales and a positive development in the health care industry. With roughly an hour left in the trading session, the Dow Jones Industrial Average is up 71 points, or 0.49%.

Fueling the generally positive sentiment on Wall Street were the sales figures from the nation’s largest automakers for the month of March. Ford reported an overall increase of 5.7% relative to the same month last year. Year to date, that figure comes in at 11%. Ford’s success was largely a function of SUV sales. While car sales declined by 0.2%, led by an 11.9% fall related to the Focus, demand for Ford’s Escape and Explorer models soared 27.6% and 32.5%, respectively.

Ken Czubay, Ford’s vice president of U.S. marketing, sales, and service, said in the company’s prepared remarks: “Customers are buying our all-new Fusion and Escape in record numbers, and we are working harder than ever to keep pace with demand for these fuel-efficient vehicles. Full-size pickup demand continues gaining momentum, outperforming the industry for the third consecutive month.”

General Motors reported equally impressive results, notching its best March sales in five years. Its performance owed largely to its Cadillac and Buick brands, sales of which were higher during the month by 50% and 37%, respectively. By comparison, the significantly larger Chevrolet division was roughly even compared with the same month last year.

According to the company’s prepared remarks, vice president of U.S. sales operations Kurt McNeil said:

GM delivered its best March sales in five years thanks to a strengthening economy and new products, and we are expecting our third consecutive increase in market share versus last year. Sales of smaller cars have been robust for some time. Trucks have improved in lockstep with the housing market and the strength of the crossover market signals that America’s families are more confident about their financial health.

Not surprisingly, shares of both companies are up by more than 1% in intraday trading.

Meanwhile, shares of UnitedHealth Group are leading the Dow higher today, up 4.9% at the time of writing. As my colleague Dan Dzombak discussed earlier, the move follows a surprise announcement last night by Medicare Advantage, a souped-up version of Medicare.

Earlier in the year, the Centers for Medicare and Medicaid Services proposed cutting certain benefits that would flow through the enhanced health-insurance program. Its initial proposal included a 2.3% reduction in what the government pays to private insurance companies to administer the plans. This all changed with last night’s announcement, as the CMS now plans to increase the amount by 3.3% instead. Sorta makes you think they left out a negative symbol on the first go-around.

When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new …read more
Source: FULL ARTICLE at DailyFinance

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UnitedHealth's Big Day Energizes the Dow

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By Dan Carroll, The Motley Fool

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You want gains? The Dow Jones Industrial Average has gains — enough to put a smile on many a blue-chip investor’s face this Tuesday.

The index has hit a new intraday record high in its latest surge, and as of 2:15 p.m. EDT the Dow has advanced 95 points, or 0.6%. Health care stocks are leading the way, with most of the index in the green despite one computer maker’s huge losses. Who’s on the move? Let’s get caught up on the stocks you need to know about.

A day of healthy gains for UnitedHealth
Few people are having a better Tuesday than UnitedHealth Group investors. The big insurer has pulled down gains of 4.9% after the Centers for Medicare and Medicaid Services announced on Monday a reimbursement rate hike of 3.3% for Medicare Advantage payments to insurers in 2014. Previously, the program had been planned to slash government reimbursement to insurers by 2.2%. The rate increase is a major win for the entire insurance industry.

With UnitedHealth having increased its Medicare membership last year, the announcement is a big long-term for the company and its stock despite the uncertainty still surrounding the launch of Obamacare.

The rest of the health care sector is not quite hitting that high note, but big pharma’s Pfizer and Merck still rank among the top of the Dow as this sector rolls higher. Shares of the companies have climbed more than 1% each so far. Even though both of them — Merck in particular — are still dealing with revenue declines related to patent expirations of top-selling drugs, both stocks have rewarded shareholders substantially so far this year.

Merck recently locked horns with Indian pharmaceutical firm Glenmark Pharmaceuticals in a legal battle over patent infringement. Merck’s Indian division, MSD, accused Glenmark of violating its Indian patent of blockbuster diabetes drugs Januvia and Janumet. Glenmark admitted to launching a generic version of the drug, which could hit Merck’s revenue growth in the second-largest nation in the world. Around 65 million Indians suffer from type 2 diabetes, making for a tempting market for Merck to tap into as it looks to grow in emerging economies.

On the other side of the Dow, even as the index surges, beleaguered tech stock Hewlett-Packard has found a way to frustrate investors. The stock has exploded this year, pulling in gains of more than 55% after last year’s calamitous fall, but today’s downgrade from Goldman Sachs won’t help it sustain that momentum.

Goldman downgraded HP from “neutral” to “sell” and lowered its projections of the company’s revenue and EPS over the next few years. Additionally, the bank mentioned that HP‘s struggling hardware segments will likely continue to flounder. The fall of the PC market certainly hasn’t helped HP‘s fate, and while investors have seen plenty of green since the start of 2013, the company still faces a long road back to respectability. Even the most optimistic believer …read more
Source: FULL ARTICLE at DailyFinance

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Health-Benefits Providers Soar on Medicare Advantage Reversal

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By Sean Williams, The Motley Fool

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Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of health–benefits providers Universal American and Humana shot out of the gate like a rocket this morning, rising as much as 12% and 10%, respectively, after the Centers for Medicare and Medicaid Services, or CMS, reversed its previously announced decision to reduce Medicare Advantage reimbursement rates.

So what: In February, insurers that offer Medicare Advantage — a supplemental health–benefits plan targeted at seniors that’s more encompassing than Medicare and often allows for fewer out-of-pocket costs, but is also more expensive — were informed by the CMS that their reimbursement rates would drop for 2013. This sent Humana and Universal American, the two companies that derive 63.5% and 75% of their business from Medicare Advantage, respectively, down swiftly. However, yesterday the CMS reversed its decision on the premise that Congress would keep doctor pay consistent, without a major reduction. The move, on top of heavy lobbying by the insurance industry, allowed the CMS to recommend a 3.3% increase in reimbursement rates as opposed to the 2.3% decrease proposed in February.

Now what: As I stated earlier today, this is a big kick in the shin for Obamacare, which was drafted in order to keep private insurance from relying on the government for higher reimbursement rates. In addition, these insurers collectively used their lobbying power and the potential threat of benefit cuts and fewer provider network choices as the impetus to get what they wanted: a reimbursement rate hike. When all is said and done, it appears the insurers still seem to have plenty of clout in the health care industry — Obamacare or not!

Craving more input? Start by adding Universal American and Humana to your free and personalized watchlist so you can keep up on the latest news with these companies.

While you can certainly make huge gains in insurers like Humana and Universal American, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool’s free report “3 Stocks That Will Help You Retire Rich” names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Health-Benefits Providers Soar on Medicare Advantage Reversal originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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Source: FULL ARTICLE at DailyFinance

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3 Stocks Trouncing the Dow Today

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is up after Cyprus negotiated better terms for its bailout. As of 1:20 p.m. EDT the Dow is up 86 points, or 0.59%, to 14,659. The S&P 500 is up 0.6% to 1,572.

There was just one U.S. economic release today.

Report

Period

Result

Previous

Factory Orders

February

3%

(1%)

Source: MarketWatch U.S. Economic Calendar.

Factory orders in February rose 3%, led largely by orders for aircraft. That was in line with analyst expectations. The big reason stocks were up today is that Cyprus completed its bailout negotiations with the International Monetary Fund, the European Central Bank, and the European Union. Cyprus negotiated an extra two years — until 2018 — to reach a budget surplus of 4%. The 10 billion euro bailout is a 22-year loan at a 2.5% interest rate that the country will begin paying in 10 years. After announcing the completion of negotiations, Cypriot Finance Minister Michael Sarris resigned. For the time being, concerns that Cyprus will affect the rest of the European Union appear to be moot. Indexes across Europe rose between 1% and 2%.

Today’s Dow leaders
Today’s Dow leader is UnitedHealth , up 5.5%. To investors’ surprise last night, Medicare Advantage announced higher reimbursement rates for 2014. In a draft statement in February, Medicare Advantage had signaled that reimbursement rates would drop. Following complaints and lobbying by the health care industry, Medicare Advantage pulled a 180. Medicare Advantage covers more than 14 million Americans, and as of the end of 2012, UnitedHealthcare had 2.6 million members enrolled in the program.

When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth, The Motley Fool takes a long-term view, honing in on prospects for UnitedHealth in a post-Obamacare world. So don’t miss out — simply click here now to claim your copy today.

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Source: FULL ARTICLE at DailyFinance