WellPoint (a MAJOR insurancer company) reported a 39% fall in profits from high medical costs for seniors, despite the trend of generally light costs seen elsewhere in the managed-care sector. Wall Street Journal 1/26/12
The analyst’s takeaway: It’s not a “disaster” since the company made adjustments to Medicare to fix the problem.
Weiniger’s Observation: In preparation for Obamacare coming online in 2014, Insurance will continue to squeeze patients and providers, especially for older people.
Opportunity: Build perceived value past the insurance payment, as people will be paying for more care out of pocket.