Dual-eligible patients are doubly appealing to managed-care companies, says Turner Investments commentary

Investment firm’s analysts think an influx of patients eligible for both Medicare and Medicaid may offer growth opportunity for managed-care companies

BERWYN, Pa.--(BUSINESS WIRE)-- There are only 9 million Americans covered by both Medicare and Medicaid (known as “dual-eligible patients”), but they accumulate about $300 billion in health-care costs annually. Now, according to the latest Sector Focus commentary from Turner Investments, the costs of caring for dual-eligible patients are expected to rise to $775 billion by 2024 and provide a long-term growth opportunity for managed-care companies.

Titled Dual-eligible patients should keep managed-care companies healthy, the piece was written by the four Turner analysts who cover the health-care sector: Heather McMeekin, portfolio manager/global security analyst; Vijay Shankaran, senior portfolio manager/global security analyst; Frank Sustersic, senior portfolio manager/global security analyst; and Theresa Tran, global security analyst.

Turner Investments, based in Berwyn, Pennsylvania, publishes Sector Focus commentaries monthly as part of the continuing efforts of its five teams of security analysts to monitor market sectors for its growth-stock portfolios.

According to the analysts, the current disjointed system created a game of “Health-Care Hot Potato, in which responsibility for the care of dual-eligible patients is passed back and forth” between Medicare, which covers basics like hospital visits and prescription drugs, and Medicaid, which covers long-term care. But now, many states are enrolling dual-eligible patients in managed-care programs to make one entity responsible for all aspects of their care.

In the long-term, the analysts think two types of managed-care companies may generate above-average growth from the influx of dual-eligible patients: first, companies that derive a bulk of their business from Medicaid patients, such as Amerigroup, Centene, and Molina Healthcare; and second, companies that serve both Medicaid and Medicare patients, such as Aetna, Health Net, UnitedHealth Group, and WellCare Health Plans.

To read this April 2012 Sector Focus in its entirety, click on this link to the Turner Investments Web site: http://www.turnerinvestments.com/health-care/. Or call 484.329.2407 for a free copy of the piece.

    The views expressed represent the opinions of Turner Investments and are not intended as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell any securities. There can be no guarantee that Turner will select and hold any particular security for its client portfolios. Past performance is no guarantee of future results.

    Turner Investments, founded in 1990, is an investment firm based in Berwyn, Pennsylvania. As of March 31, 2012, we managed more than $13 billion in stocks in separately managed accounts and mutual funds for institutions and individuals.

    As of March 31, 2012, Turner held in client accounts 343,414 shares of Amerigroup, 30,310 shares of Centene, 490,920 shares of Molina Healthcare, 83,220 shares of UnitedHealth Group, and 1 million shares of WellCare Health Plans. Turner held no shares of Aetna or Health Net.


    Turner Investments
    Abbi Anderson, 484-329-2407
    [email protected]

    KEYWORDS:   United States  North America  Pennsylvania

    INDUSTRY KEYWORDS:   Health  Professional Services  Consulting  Insurance  General Health  Managed Care