I'm well aware of how big WLP is and I have owned shares in it for a very long time. I also know a lot of the leadership, past and present. I also recall how the actuaries errored in the CA individual business market many years back.
I disagree with your analysis of the ACA. Most of the individuals buying on the exchanges are bad risk. Plus, the networks the insurers are developing for the exchanges are very limited in ways of choice. I don't see the young buying insurance in the near future and this may result in the prices on the exchanges for 2015 policies go up substantially impacting the financial statements for 2014.
Also, this company was horribly managed by the former CEO. The mantra of her final years was to cut her way to prosperity. Plus, take gambles such as the acquisition of 1-800 CONTACTS (which they just recently sold for a loss), the legal and administrative issues associated with the sale of their PBM, failure to adequately transition IT systems, and inability to execute complex projects on time / budget, I see this stock heading back to its lower levels. It may hang around at these levels (thanks to the market overall and the Fed), but it is long overdue to make one its spectacular drops.