With the big move before the close yesterday, there may be a chance that HUM corrects and actually tips into the Red before EOD. It seems remote to longs since it is still up $5 today. But both UNH and HUM have been slipping throughout the day.
I say it continues to fade the rest of the afternoon. If it doesn't hold 79, the drop later could be swifter than the slow fade today.
I don't have a position in HUM and never have. I agree with you, not only because the move today was extreme and the payments are in exchange for certain conditions. It's because Medicare Advantage Plans cover the routine things well, but what about the "Black Swan" events, that is the things we don't expect to happen. A few months ago I read two perspective articles about Medicare Advantage Plans in the New England Journal of Medicine. You can find the articles on line since Perspective articles are available to anyone. The excellence of plans was evaluated for blood sugar testing (useless for people without diabetes) and other routine tests and exams. The problem is there are certain diseases that are best watched and possibly treated by specialists that aren't in Medicare Advantage Plans. With traditional insurance the insured can be covered to see a specialist, who is most likely at a research university. The Medicare Advantage Plan will tell patients that the disease can be handled within the Advantage Plan, but what if the best experts of a largely misunderstood disease are at places such as Cleveland Clinic, MD Anderson, or the U. of California? The patient would be at the mercy of the Medicare Advantage Plan or would have to pay out of pocket for consultations if the Advantage Plan determines that they can control the disease in house. The treatment in-house may be too soon and may be chemotherapy when the state of the art, less toxic treatment is oral biologic drugs. Chemotherapy alters a person's DNA.
I'll likely review HUM this weekend, if not sooner.