Evolent Health up 11% on renewed hopes with Kentucky Medicaid contract

Evolent Health (EVH +11.3%) jumps on almost double normal volume in response to the news that the Kentucky legislature has voted against outgoing Governor Matt Bevin’s decision to award the state’s Medicaid contract to five insurers, excluding nonprofit Passport Health Plan [and Anthem (ANTM)] in favor of UnitedHealthcare (UNH +0.4%) and Molina (MOH -0.4%).

The about-face gives new life to Passport, which generates almost all of its $2B annual revenue from the state Medicaid contract, an acquisition target of Evolent’s.

Evolent shares plunged 34% in late November in response to Gov. Bevin’s action.

https://seekingalpha.com/news/3525255-evolent-health-up-11-on-renewed-hopes-kentucky-medicaid-contract