Two elements of the Affordable Care Act expanding health insurance coverage were singled out by WellCare Health Plans Inc. in a statement reacting to the U.S. Supreme Court U.S. Supreme Court Latest from The Business Journals Supreme Court justices question health insurance mandateMaking the case in public Follow this company ruling upholding the health care reform measure.
WellCare (NYSE: WCG), a Tampa company that provides managed care services targeted to government-sponsored health care programs such as Medicaid and Medicare, said it was pleased that the high court preserved states’ option to expand Medicaid coverage. “We welcome the opportunity to serve more members of the low-income and vulnerable populations in the states where we currently operate,” the statement said.
The ACA also calls for establishing health care exchanges, new marketplaces for individuals and small businesses to compare and choose private health plans. WellCare “believes that many of the people who will obtain insurance through the exchanges are likely to have similar health care needs and demographic characteristics to our current members … and [we] would welcome the opportunity to serve them,” the statement said.
Investors, who liked the potential business expansions for WellCare, sent the company’s stock price up nearly 9 percent Thursday, closing at $53.98 a share.
Stock gains were smaller at other commercial health insurers, including UnitedHealth Group (NYSE: UNH), the country’s largest insurer and a market leader in the Tampa Bay area. While insurers generally are expected to add millions of new customers because of the individual mandate in the ACA, they also face new requirements on providing coverage and costs. UnitedHealth (NYSE: UNH) closed up by about a half-percent, while Aetna Inc. Aetna Inc. Latest from The Business Journals Which area stocks are up, which are down after health-care rulingSome health stocks get a boost from Supreme Court rulingHealth stocks, Dow down on ruling Follow this company (NYSE: AET) was up 2.7 percent.
Aetna issued a statement saying the Supreme Court decision did not change the company’s business strategy or commitment to reform that make quality care more affordable and accessiblMargie Manning is Quality and Content Editor of the Tampa Bay Business Journal. She also covers banking, finance and professional services.
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