October 24, 2023
A Note From the Desk of Keith Lemer,
CEO of WellNet Healthcare
Stay with me // 3-minute read.
Growth at your expense.
Stock increases comparable to Apple.
Why have they made so much money and how does this impact you?
- Inside WSJ this week – charts highlighted ‘Group Health Insurances’ Biggest Increase in More Than a Decade’
- We all know that stocks and publicly traded health insurance carriers have been one of the best performing asset classes in financial markets in recent years.
- But is all this growth coming at the expense of companies that provide and pay for most of the health insurance expenses for their people?
Think about this:
- If you have been invested in health insurance company stocks over the past decade or so, lucky you.
- You’ve probably made a nice return – considering United Health Group’s stock price has risen from $32 to over $500 per share.
- That’s a 26 % growth rate – same as Apple (the most valuable company in the world) & more than twice the rate of the overall market.
- Anthem’s stock price? Rose from $51-$520 at the same time.
Which brings us to our first question above: what is driving all this growth and why have they made so much money?