Centene, Humana at head of line for cash windfall on positive ObamaCare ruling

In a note, Evercore ISI’s Michael Newshel writes that Centene (CNC -2.1%) and Humana (HUM -1.6%) stand to reap the greatest benefits from a positive Supreme Court ruling in a case involving costs to health insurers related to the Affordable Care Act during the years 2014 – 16. The Court has agreed to review the matter next year.

If the Court rules in favor of managed care providers, CNC and HUM could potentially receive ~$600M and ~$400M, respectively.

Mr. Newshel says the potential windfall will have no impact on run-rate earnings since the companies wrote off the risk corridor payments some time ago.

Related tickers: UnitedHealth Group (UNH -1.1%), Cigna (CI -1%), Anthem (ANTM -2.2%), Molina Healthcare (MOH -2.5%)

https://seekingalpha.com/news/3473330-centene-humana-head-line-cash-windfall-positive-aca-ruling