Here’s a simple calculation of the stock price growth of major health plans – United, Aetna, CIGNA, Humana and Anthem – over a period of just less than 9 years since the passage of the Affordable Care Act. Stock price has grown a breathtaking 5.3x-9.6x, about 3x the growth of the Dow Jones Index and 2.5x the growth of the S&P over this period.
Major Health Plan Stock Price Growth – 3/15/09 – 1/31/18
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United | Aetna | CIGNA | Humana | Anthem | Dow-Jones | S&P 500 | |
May 15, 2009 | 27.51 | 25.76 | 21.66 | 31.58 | 46.88 | 8268.64 | 756.55 |
January 31, 2018 | 236.65 | 187.89 | 208.35 | 281.83 | 247.85 | 26,149.39 | 2,823.81 |
Growth | 8.60 | 7.29 | 9.62 | 8.92 | 5.29 | 3.16 | 3.73 |
Growth re: DJI | 3.40 | 2.88 | 3.80 | 3.53 | 2.09 | ||
Growth re: S&P | 2.72 | 2.31 | 3.04 | 2.82 | 1.67 |
Brian Klepper, PhD
Well said and thanks for updating those slides you shared a year ago. I hope I don’t offend anyone by getting all biblical on everyone, but take a lesson from Matthew 6:24 – 24 “No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money – Carl Schuessler
What is the #1 fiduciary responsibility for a publicly traded company? Shareholder……If you are an insurance company….what is the primary way you increase revenue – raise premiums, higher claims, so BUCAH’s have fiduciary responsibility to let claims go up to raise premiums and increase revenues which is in direct conflict of a self-funded employer’s fiduciary responsibility. Carriers have a fiduciary responsibility to their investors – not employers – can’t serve 2 masters