Humana Health Care's fortunes sinking....... [View All]

My heart aches for them...... :nopity:



Humana Leads Drop in Managed-Care Stocks Over Medicare Limits
By Robert Greene


Feb. 23 (Bloomberg) -- Humana Inc. fell the most in 11 months, leading a decline in managed-care stocks, after the U.S. government proposed fee increases of less than 1 percent to companies providing subsidized health coverage for the elderly.

The shares of Humana dropped by $8.29, or 20 percent, to $32.25 in New York Stock Exchange composite trading at 10:34 a.m. The Standard & Poor’s 500 index of six managed-care providers, including UnitedHealthGroup Inc. and WellPoint Inc. as well as Humana, lost 9.8 percent.

Humana said today that the new rates, scheduled for 2010, would have a “significant adverse impact.” The Centers for Medicare & Medicaid Services, a U.S. agency, announced the proposals on Feb. 20, after markets closed, for companies that offer coverage through what is known as Medicare Advantage plans. The plans typically offer benefits beyond those the elderly receive in Medicare obtained directly from the government.

Also, President Barack Obama may call for reducing the subsidies when he announces budget proposals this week, an administration official said yesterday.


http://www.bloomberg.com/apps/news?pid=20601087&sid=agWtY1rCRUns&refer=home