The Prosperity of Managed Care Plans May Be Tapering Off- 05/17/05

Article from California Physician Online

Even as the nation's health care costs keep climbing, the insurance companies that try to manage those costs have been prospering and increasing their profit. But some analysts see trouble ahead. The share prices of three of the largest insurers - WellPoint, UnitedHealth Group and Cigna - reached 52-week highs early this month, at the peak of a two-year surge in the stocks of managed care companies. But since April 7, the big insurers have led the way down as a Standard & Poor's index of managed care stocks fell 8.4 percent while the broader S.& P. 500-stock index slipped only 3.3 percent.