Why B/E’s More Important than P/E to WellPoint and Other Health Insurers
In the health insurance industry, the margin for error is slim. Companies like WellPoint (NYSE:WLP) and UnitedHealth Group (NYSE:UNH) must pay particular attention to a single metric that separates the winners and losers in this massive market. This statistic is the benefits expense ratio - also called the medical loss ratio - simply, the cost of providing health care to members divided by the revenues from the premiums paid by these members.
Benefits expense ratio, WLP and Competitors
More on this topic
(What's this?)
Why B/E’s More Important than P/E to WellPoint and Other Health Insurers
(The Simplified Investor, 8/6/08)
Wellpoint (WLP) Valuation from Value Investors Club
(Old School Value, 6/11/08)
New York Times Runs Yet Another Fawning Story on Health Insurance Industry
(naked capitalism, 8/28/09)
Health Care Reforms – Only Requires Health Insurance Reforms
(Dividend Tree, 9/11/09)
