分组1 - UnitedHealth's Q4 earnings release triggered a significant sell-off across the healthcare industry, impacting companies like Centene, which has notable exposure to governmental healthcare programs, albeit less than UnitedHealth [1] - The sell-off reflects broader market concerns regarding the performance and outlook of healthcare stocks following UnitedHealth's results [1] 分组2 - The article emphasizes the importance of fundamental analysis in making informed investment decisions, highlighting the author's experience in managing a family portfolio and understanding the balance between risk and reward [1] - The author aims to provide accessible insights for investors of all experience levels, leveraging a background in IT to navigate complexities in technology stocks and other sectors [1]

Core Viewpoint - The stock prices of U.S. Medicare insurance companies have declined in pre-market trading following a proposal to slightly increase payment rates to these companies [1] Company Performance - Humana's stock dropped by 17% [1] - Elevance Health's stock fell by 8% [1] - Centene's stock decreased by 7.7% [1] - Molina Healthcare's stock declined by 7.3% [1]

UnitedHealth, Humana, CVS Dive On Flat 2027 Medicare Advantage Rates | Investor's Business DailyMUST- VIEW FOR INVESTORS: [See The Best Online Brokers For 2026]---UnitedHealth (UNH), Humana (HUM), CVS Health (CVS) and other S&P 500 health insurance stocks were pummeled overnight after the Trump administration announced a preliminary plan to keep Medicare reimbursement rates nearly flat in 2027, far below expectations. The diminished Medicare outlook for 2027 overshadowed Tuesday morning's mixed fourth-quart ...

Core Viewpoint - Shares of major health insurance companies experienced significant declines in premarket trading following a proposal from the Trump administration to maintain flat Medicare payment rates in 2027, which did not meet Wall Street expectations [1][3]. Group 1: Stock Performance - UnitedHealth Group's shares fell nearly 9% to $317.51 [2] - CVS Health's stock price dropped 9.38% to $76 [2] - Centene's stock price decreased to $44.26, down 4.36% from the previous close [2] - Elevance Health's shares declined nearly 7% to $350.93 [2] - Humana's shares were the most affected, falling to $229, down more than 13.1% from Monday's closing [2] Group 2: Medicare Payment Rate Proposal - The Centers for Medicare & Medicaid Services proposed a 0.09% increase in Medicare Advantage payment rates for 2027, significantly lower than analysts' expectations of a 4-6% increase [3] - The previous year's increase was 5.06%, which exceeded forecasts [3] - The lower proposed increase follows President Trump's criticism of insurance companies, indicating a desire for them to earn less [3] Group 3: Official Statement - CMS Administrator Dr. Mehmet Oz stated that the proposed payment policies aim to ensure that Medicare Advantage functions better for the beneficiaries it serves [4]

Core Insights - Centene Corporation (CNC) is expanding its supportive care services in Ohio through a partnership with Tuesday Health, launching on January 1, 2026, to provide structured palliative care for members with serious illnesses [1][4] Group 1: Partnership and Services - The program will offer eligible Buckeye members support from a diverse team including nurses, social workers, nurse practitioners, and physicians, aiming to manage symptoms and assist caregivers [2] - The initiative is designed to provide 24/7 access to clinicians, addressing issues early to prevent unnecessary hospital admissions [2][3] Group 2: Market Context and Strategy - The partnership is timely as Ohio faces increasing caregiver strain and a growing population with complex medical needs, with palliative care focusing on comfort and coordination [3] - This initiative aligns with CNC's value-based care strategy, particularly relevant for Medicaid, Medicare Advantage, and dual-eligible populations that typically incur higher medical costs [4] Group 3: Future Implications - The Ohio rollout creates a scalable framework for potential expansion of similar partnerships across other states if performance metrics are met [5] - While the immediate financial impact may be limited, this initiative could enhance the company's role in whole-person care and its commitment to managing complex populations [5] Group 4: Stock Performance - Over the past three months, CNC shares have increased by 23.8%, contrasting with a 6.8% decline in the industry [6]

Core Insights - Tuesday Health and Buckeye Health Plan have launched a partnership to provide expanded palliative care in Ohio, effective January 1, 2026, aimed at supporting individuals with serious illnesses and their caregivers [1][4]. Group 1: Partnership Details - Eligible Buckeye members will have access to an interdisciplinary care team from Tuesday Health, which includes nurses, social workers, nurse practitioners, and physicians [2]. - The care team will work closely with members' existing healthcare providers to manage symptoms and provide support, including 24/7 access to clinicians for urgent needs [2][3]. Group 2: Goals and Impact - The partnership aims to alleviate the burden of serious illness in Ohio, where one in four adults currently cares for someone with complex medical needs, as reported by AARP [3]. - Value-based palliative care is expected to reduce avoidable hospital visits by proactively managing symptoms and improving care coordination [3]. Group 3: Organizational Commitment - Buckeye Health Plan emphasizes its commitment to providing coordinated and compassionate care for members with complex health needs, aligning with Tuesday Health's care model [4]. - The collaboration is part of Tuesday Health's broader strategy to expand access to palliative care nationally, with plans to enter several new states in 2026 [4][5]. Group 4: Performance Metrics - Tuesday Health has reported high engagement and member satisfaction rates above 90%, along with measurable reductions in avoidable hospital and emergency department visits [6]. - The organization aims to enhance the quality of life for individuals and their caregivers through its community-based palliative care model [7]. Group 5: Company Backgrounds - Tuesday Health is focused on transforming serious illness and end-of-life care through goal-centered, value-based palliative care [7]. - Buckeye Health Plan has been dedicated to improving healthcare for low-income Ohioans since 2004, providing essential support through managed healthcare programs [8].

Core Viewpoint - Health insurance companies experienced a slight increase in stock prices after market hours on January 9, with notable gains among major players in the sector [1] Company Performance - UnitedHealth's stock price rose by 0.8% [1] - CVS Health Group's stock price increased by 0.4% [1] - Humana's stock price saw a rise of 0.9% [1] - Centene's stock price also increased by 0.9% [1]

Core Insights - Centene Corporation (CNC) is enhancing its Medicaid-focused growth strategy through a new partnership with Cityblock Health, targeting 10,000 Medicaid members across 17 counties in Illinois [1][9] Partnership Details - The collaboration will provide a comprehensive 24/7 wrap-around care model, including primary and urgent care, behavioral health support, social care coordination, clinical pharmacy, and overall care management, specifically designed for Medicaid populations facing complex issues [2][9] - This partnership marks the fourth regional collaboration between Centene and Cityblock, following previous partnerships in New York, Ohio, and Florida, reflecting Centene's commitment to value-based care models [3][9] Strategic Implications - By integrating Cityblock's innovative care model, Centene aims to enhance member engagement, reduce unnecessary hospital visits, and lower overall care costs, which are crucial for maintaining healthy margins in Medicaid contracts [4][9] - Such partnerships may strengthen Centene's position as a leading Medicaid operator, adapting to evolving care models and enhancing its competitive edge with state regulators during contract renewals [5] Financial Performance - Over the past six months, Centene's shares have increased by 38.3%, significantly outperforming the industry growth of 10.7% [6]

Core Insights - Centene Corporation is showing early signs of stabilization after a challenging first half of 2025, with shares rising 16.3% over the past three months, outperforming the industry's 7.3% decline [1][8] - The company faces ongoing challenges, including increased operating expenses and a rising health benefits ratio, which has impacted profitability [6][7] Financial Performance - Operating expenses increased by 5.5% in 2023, 5.8% in 2024, and surged by 26.5% in the first nine months of 2025, primarily due to higher medical costs [6] - The health benefits ratio rose from 87.7% in 2023 to 92.7% by the end of Q3 2025, indicating a squeeze on margins [6] - Adjusted net margin fell from 2.3% to 0.5% in Q3 2025, highlighting profitability challenges [7] - Long-term debt stands at $17.5 billion, with a debt-to-capital ratio of 45.51%, above the industry average of 40.23% [7] Market Position and Membership Trends - Centene's commercial membership is growing, with a 29.5% increase in marketplace membership in the first nine months of 2025, which typically offers better margins than government programs [11] - However, declines in Medicare and traditional Medicaid enrollment are weighing on total membership, and competition in government-sponsored programs is intensifying [9] Earnings Estimates and Projections - The Zacks Consensus Estimate for 2025 earnings is $2 per share, reflecting a 72.1% year-over-year decline, but a rebound to $2.94 is expected in 2026, representing a 46.6% recovery [10] - Revenues are projected to rise by 18.5% in 2025 before a slight decline of 0.3% in 2026 [10] Valuation and Future Outlook - Centene trades at a forward P/E of 15.11X, slightly below the industry average of 16.16X, indicating a balanced valuation [12] - Management anticipates improvements in Medicare Star ratings and benefits from demographic trends, such as an aging population and rising chronic disease prevalence [14] - Despite near-term pressures, the company's expanding commercial business and expectations of earnings recovery in 2026 support a longer-term positive outlook [15]

Fund Performance - Artisan Mid Cap Value Fund's Investor Class returned 0.97%, Advisor Class returned 0.98%, and Institutional Class returned 0.97% in Q3 2025, underperforming the Russell Midcap Value Index which returned 6.18% [1] - The equity markets rallied in Q3, driven by strong corporate earnings, rising AI capital expenditures, and expectations of economic support from US fiscal policy and lower interest rates [1] Company Focus: Baxter International Inc. - Baxter International Inc. (NYSE:BAX) had a one-month return of 7.38% but lost 34.25% over the last 52 weeks, closing at $19.50 per share with a market capitalization of $10.024 billion on January 2, 2026 [2] - The healthcare sector, including Baxter, was a significant source of underperformance for the fund, with three of the four biggest detractors coming from this sector [3] Company Challenges and Strategy - Baxter has faced growth challenges post-COVID due to supply-chain issues and delayed normalization of procedure volumes, leading to disappointing performance [3] - The company has undergone a multiyear restructuring, selling non-core operations to become a more profitable growth entity, although this has created confusion among investors [3] - Baxter's stock is currently trading at a single-digit multiple on forward earnings, near its lowest valuation levels, and the company is using free cash flow to pay down debt and return capital to shareholders [3]