Investment banking firm BMO Capital Markets downgraded health insurers UnitedHealth Group and Humana due to uncertainty surrounding the 2020 presidential election, according to The Street.
UnitedHealth and Humana were downgraded from "outperform" to "market perform" since the health insurers have deeper ties in the Medicare Advantage business. According to a research note cited by The Street, BMO Capital predicts that under a different administration, Medicare Advantage profit margins could be lower and enrollment would slow.
While election uncertainty docked UnitedHealth and Humana, Cinga was upgraded to "outperform" from "market perform" for similar reasons. BMO Capital cited its lower valuation and a business mix that may better weather a possible administration change as reason for the upgrade.
Read the report here.
More articles on payers:
BCBS of North Carolina merger plans halted as video, details of CEO's DWI incident emerge
Woman says UnitedHealth sent her 500 denial letters in 5 days
BCBS of North Carolina CEO resigns after DWI arrest