Speaker 1: Let's take a look at some of the stocks on
Speaker 1: the movie also alongside normal Linda and we're joined by
Speaker 1: Glenn Luso, senior healthcare analysts for Bloomberg Intelligence. Glenn, what
Speaker 1: is senting and what's the news today?
Speaker 2: Let's start there? Okay, So SATIN is a health insurance
Speaker 2: of focusing mainly on medigate and health insurance marketplace. The
Speaker 2: reason this stock is down is the company withdrew twenty
Speaker 2: five guidance highlighting higher acuity and slower membership growth in
Speaker 2: its marketplace, and secondarily also highlighting increase in medical costs
Speaker 2: in some of the markets in its medigate geographies.
Speaker 3: So I know in fatures have been really growing worried
Speaker 3: here investors as well about the changes that could happen
Speaker 3: to the Affordable Care Act. What is this all foreshadow
Speaker 3: about the broader industry?
Speaker 2: Most of the focus recently has been obviously on the
Speaker 2: hang from the Reconciliation Bill. You know, there was some
Speaker 2: sort of improved visibility going into next year and the
Speaker 2: year after because of that, but at the same time,
Speaker 2: seeing teens coming out with the guidance sort of put
Speaker 2: it right in front of us. So first they're going
Speaker 2: to have to show stability, either SATIN or other health
Speaker 2: insurance companies will have to show some sort of stabilizing trends.
Speaker 2: As a reminder, seeing Keen's guidance withdrawal comes approximately two
Speaker 2: months after United withdrew its guidance, which created a very
Speaker 2: negative sentiment for the whole group. And now it's the
Speaker 2: second punch within the same larger health insurance industry. So
Speaker 2: first thing is stability, and second thing, obviously there's going
Speaker 2: to be a long term overhang from whatever reconciliation bill
Speaker 2: brings to mitigate cuts overall, and just in general uncertainty
Speaker 2: until visions are implemented.
Speaker 1: All right, So here's Bloomberg News reporting Senteen is the
Speaker 1: top seller of ACA health plans. The government has been
Speaker 1: cracking down on inappropriate and fraudulent enrollments in those plans,
Speaker 1: meaning people who shouldn't have been on them are getting
Speaker 1: kicked off. Analysts have said that probably means customers who
Speaker 1: are paying into them but not filing many claims are
Speaker 1: now exiting.
Speaker 2: How did the.
Speaker 1: Company not know this? They're an insurance company, their job
Speaker 1: is to price risk. How did they get so blinded?
Speaker 2: It's very difficult to sort of where we are to
Speaker 2: really fold a company, we're not in the trenches. Obviously,
Speaker 2: it's their business. They should be able to sort of
Speaker 2: foresee what's coming up in the next year and how
Speaker 2: to manage risk. But at the same time, there are
Speaker 2: so many things from Washington and policy changes on how
Speaker 2: sick the patients are, and they manage thousands, if not
Speaker 2: millions of people. Some of the things that may be
Speaker 2: overlooked or may not just be presented sort of to
Speaker 2: be really included in their trend and risk calculations.
Speaker 3: So you mentioned United Health of course senteen today, so
Speaker 3: these aren't necessarily isolated at least that's how the street
Speaker 3: is viewing it. This is potentially an impact that people
Speaker 3: could see ricocheting throughout the entire sector.
Speaker 2: Yes, so in general, these companies, you know, as I said,
Speaker 2: Sin King's focusing on marketplace and medigate, United is just
Speaker 2: an eight hundred pound guerrilla focusing or has a huge
Speaker 2: market in all of the health insurance businesses. But that
Speaker 2: being set, in general, health insurance are trading as it's
Speaker 2: a commoditized industry, so they're all generally trade in the
Speaker 2: same direction. So if United, for example, I'm not saying
Speaker 2: it they will do. But if United, for example, being
Speaker 2: states guidance during the second quarter earning release, it will
Speaker 2: create a stabilization effect for the whole industry. After that,
Speaker 2: if someone like United or elevens, the larger players show
Speaker 2: some stability or actually improvement in the operating environment and
Speaker 2: the results that they report, it will impact the whole
Speaker 2: industry and the positive. So generally it's you know, something
Speaker 2: wrong with the one company, especially if someone is because United,
Speaker 2: it impacts everyone else.
Speaker 1: All right, So this is a function of the Trump
Speaker 1: administration cracking down on some of these Affordable Care Act plans.
Speaker 1: Is that kind of the origination of this?
Speaker 2: I don't think so. No, okay, but that you know
Speaker 2: Washington overhang, and usually it's a negative overhang, either Republicans
Speaker 2: are leading in Washington or Democrats. It's always for health insurance,
Speaker 2: it's generally in negative went from Washington. So that is
Speaker 2: still you know, Washington cracking, uh, cracking on sort of
Speaker 2: health insurance in general. There's always a in the back
Speaker 1: Background, all right, Glenn, thanks so much for joining us
Speaker 1: breaking this down forst Glenn also have senior healthcare analyst
Speaker 1: for a Bloomberg Intelligence