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Company: Humana (HUM)
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63%
agree
19 votes

  Rising health care costs mean more Americans want insurance

Positive Trends: Healthcare costs have been rising and will only continue to rise as the population ages. Americans will want to insure themselves from the most extreme of these costs, meaning Humana is well positioned to take advantage. Moreover, since Humana has a long track record of doing business with the government, it may attract new members who approach retirement age and want to take advantage of Medicare Advantage and similar programs.

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100%
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1 votes

  Organic growth drives profits

Organic growth is good: Humana nearly doubled its membership between 2005 and 2006 by leveraging Medicare Part D. The company expanded by offering a new product, rather than by acquiring rivals or slashing prices. This growth route leads to higher profitability in the long run.

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100%
agree
1 votes

  Recent acquisition of CompBenefits is a step in the right direction

Heading in the right direction: Although Humana has been slow to diversify its offerings, its recent acquisition of CompBenefits is a step in the right direction and a signal of its willingness to head towards bundling.

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