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Wall Street is betting on health insurance industry
Modern Healthcare

Publicly traded health insurers are performing better financially than other healthcare industry players, and that’s unlikely to change anytime soon, according to a panel of Wall Street analysts at a Nashville Health Care Council event on Wednesday.

Last year, the average managed care stock price was up about 18%, driven by steady medical costs growth and the ability to price higher than those costs, said A.J. Rice, managing director at Credit Suisse.

“That’s been one of the main sources of upside, is the spread widening what their pricing for and what they’re actually realizing,” Rice said.