1 00:00:00,080 --> 00:00:01,640 Speaker 1: Let's take a look at some of the stocks on 2 00:00:01,639 --> 00:00:04,400 Speaker 1: the movie also alongside normal Linda and we're joined by 3 00:00:04,680 --> 00:00:08,799 Speaker 1: Glenn Luso, senior healthcare analysts for Bloomberg Intelligence. Glenn, what 4 00:00:08,960 --> 00:00:10,880 Speaker 1: is senting and what's the news today? 5 00:00:10,920 --> 00:00:15,960 Speaker 2: Let's start there? Okay, So SATIN is a health insurance 6 00:00:16,440 --> 00:00:22,959 Speaker 2: of focusing mainly on medigate and health insurance marketplace. The 7 00:00:23,040 --> 00:00:27,160 Speaker 2: reason this stock is down is the company withdrew twenty 8 00:00:27,560 --> 00:00:32,760 Speaker 2: five guidance highlighting higher acuity and slower membership growth in 9 00:00:32,960 --> 00:00:38,760 Speaker 2: its marketplace, and secondarily also highlighting increase in medical costs 10 00:00:39,400 --> 00:00:43,960 Speaker 2: in some of the markets in its medigate geographies. 11 00:00:44,520 --> 00:00:47,159 Speaker 3: So I know in fatures have been really growing worried 12 00:00:47,200 --> 00:00:51,519 Speaker 3: here investors as well about the changes that could happen 13 00:00:51,640 --> 00:00:55,080 Speaker 3: to the Affordable Care Act. What is this all foreshadow 14 00:00:55,120 --> 00:00:56,640 Speaker 3: about the broader industry? 15 00:00:56,960 --> 00:00:59,720 Speaker 2: Most of the focus recently has been obviously on the 16 00:01:00,160 --> 00:01:03,520 Speaker 2: hang from the Reconciliation Bill. You know, there was some 17 00:01:03,600 --> 00:01:06,960 Speaker 2: sort of improved visibility going into next year and the 18 00:01:07,040 --> 00:01:09,520 Speaker 2: year after because of that, but at the same time, 19 00:01:10,080 --> 00:01:14,080 Speaker 2: seeing teens coming out with the guidance sort of put 20 00:01:14,080 --> 00:01:16,800 Speaker 2: it right in front of us. So first they're going 21 00:01:16,880 --> 00:01:21,559 Speaker 2: to have to show stability, either SATIN or other health 22 00:01:21,600 --> 00:01:26,800 Speaker 2: insurance companies will have to show some sort of stabilizing trends. 23 00:01:26,840 --> 00:01:31,280 Speaker 2: As a reminder, seeing Keen's guidance withdrawal comes approximately two 24 00:01:31,319 --> 00:01:36,360 Speaker 2: months after United withdrew its guidance, which created a very 25 00:01:36,400 --> 00:01:38,880 Speaker 2: negative sentiment for the whole group. And now it's the 26 00:01:38,920 --> 00:01:45,039 Speaker 2: second punch within the same larger health insurance industry. So 27 00:01:45,280 --> 00:01:48,320 Speaker 2: first thing is stability, and second thing, obviously there's going 28 00:01:48,400 --> 00:01:52,280 Speaker 2: to be a long term overhang from whatever reconciliation bill 29 00:01:52,440 --> 00:01:58,440 Speaker 2: brings to mitigate cuts overall, and just in general uncertainty 30 00:01:58,840 --> 00:02:01,440 Speaker 2: until visions are implemented. 31 00:02:01,560 --> 00:02:04,240 Speaker 1: All right, So here's Bloomberg News reporting Senteen is the 32 00:02:04,280 --> 00:02:07,120 Speaker 1: top seller of ACA health plans. The government has been 33 00:02:07,160 --> 00:02:10,600 Speaker 1: cracking down on inappropriate and fraudulent enrollments in those plans, 34 00:02:10,639 --> 00:02:13,440 Speaker 1: meaning people who shouldn't have been on them are getting 35 00:02:13,720 --> 00:02:17,720 Speaker 1: kicked off. Analysts have said that probably means customers who 36 00:02:17,720 --> 00:02:19,800 Speaker 1: are paying into them but not filing many claims are 37 00:02:19,800 --> 00:02:20,519 Speaker 1: now exiting. 38 00:02:21,360 --> 00:02:21,880 Speaker 2: How did the. 39 00:02:21,800 --> 00:02:24,880 Speaker 1: Company not know this? They're an insurance company, their job 40 00:02:24,960 --> 00:02:27,720 Speaker 1: is to price risk. How did they get so blinded? 41 00:02:28,600 --> 00:02:31,400 Speaker 2: It's very difficult to sort of where we are to 42 00:02:31,600 --> 00:02:36,840 Speaker 2: really fold a company, we're not in the trenches. Obviously, 43 00:02:36,960 --> 00:02:40,800 Speaker 2: it's their business. They should be able to sort of 44 00:02:40,919 --> 00:02:44,480 Speaker 2: foresee what's coming up in the next year and how 45 00:02:44,560 --> 00:02:47,040 Speaker 2: to manage risk. But at the same time, there are 46 00:02:47,040 --> 00:02:54,600 Speaker 2: so many things from Washington and policy changes on how 47 00:02:54,800 --> 00:02:59,240 Speaker 2: sick the patients are, and they manage thousands, if not 48 00:02:59,400 --> 00:03:02,840 Speaker 2: millions of people. Some of the things that may be 49 00:03:03,000 --> 00:03:06,800 Speaker 2: overlooked or may not just be presented sort of to 50 00:03:06,919 --> 00:03:11,200 Speaker 2: be really included in their trend and risk calculations. 51 00:03:11,760 --> 00:03:15,320 Speaker 3: So you mentioned United Health of course senteen today, so 52 00:03:15,360 --> 00:03:18,359 Speaker 3: these aren't necessarily isolated at least that's how the street 53 00:03:18,480 --> 00:03:21,360 Speaker 3: is viewing it. This is potentially an impact that people 54 00:03:21,360 --> 00:03:23,840 Speaker 3: could see ricocheting throughout the entire sector. 55 00:03:24,480 --> 00:03:28,520 Speaker 2: Yes, so in general, these companies, you know, as I said, 56 00:03:28,600 --> 00:03:32,640 Speaker 2: Sin King's focusing on marketplace and medigate, United is just 57 00:03:32,960 --> 00:03:36,640 Speaker 2: an eight hundred pound guerrilla focusing or has a huge 58 00:03:37,280 --> 00:03:41,120 Speaker 2: market in all of the health insurance businesses. But that 59 00:03:41,280 --> 00:03:46,120 Speaker 2: being set, in general, health insurance are trading as it's 60 00:03:46,160 --> 00:03:50,560 Speaker 2: a commoditized industry, so they're all generally trade in the 61 00:03:50,600 --> 00:03:53,400 Speaker 2: same direction. So if United, for example, I'm not saying 62 00:03:53,440 --> 00:03:56,400 Speaker 2: it they will do. But if United, for example, being 63 00:03:56,480 --> 00:04:01,560 Speaker 2: states guidance during the second quarter earning release, it will 64 00:04:01,600 --> 00:04:06,800 Speaker 2: create a stabilization effect for the whole industry. After that, 65 00:04:07,040 --> 00:04:11,280 Speaker 2: if someone like United or elevens, the larger players show 66 00:04:11,440 --> 00:04:15,560 Speaker 2: some stability or actually improvement in the operating environment and 67 00:04:15,720 --> 00:04:20,560 Speaker 2: the results that they report, it will impact the whole 68 00:04:20,600 --> 00:04:24,800 Speaker 2: industry and the positive. So generally it's you know, something 69 00:04:24,839 --> 00:04:27,800 Speaker 2: wrong with the one company, especially if someone is because United, 70 00:04:27,839 --> 00:04:28,920 Speaker 2: it impacts everyone else. 71 00:04:29,000 --> 00:04:31,040 Speaker 1: All right, So this is a function of the Trump 72 00:04:31,040 --> 00:04:34,400 Speaker 1: administration cracking down on some of these Affordable Care Act plans. 73 00:04:34,440 --> 00:04:36,000 Speaker 1: Is that kind of the origination of this? 74 00:04:36,560 --> 00:04:41,159 Speaker 2: I don't think so. No, okay, but that you know 75 00:04:41,440 --> 00:04:47,119 Speaker 2: Washington overhang, and usually it's a negative overhang, either Republicans 76 00:04:47,200 --> 00:04:51,839 Speaker 2: are leading in Washington or Democrats. It's always for health insurance, 77 00:04:52,040 --> 00:04:59,120 Speaker 2: it's generally in negative went from Washington. So that is 78 00:04:59,160 --> 00:05:02,919 Speaker 2: still you know, Washington cracking, uh, cracking on sort of 79 00:05:03,200 --> 00:05:06,360 Speaker 2: health insurance in general. There's always a in the back 80 00:05:06,480 --> 00:05:08,840 Speaker 1: Background, all right, Glenn, thanks so much for joining us 81 00:05:08,839 --> 00:05:11,159 Speaker 1: breaking this down forst Glenn also have senior healthcare analyst 82 00:05:11,200 --> 00:05:12,719 Speaker 1: for a Bloomberg Intelligence