Government Set to Bail Out Medicaid

We had originally thought that the recession could have both negative and positive effects on the Medicaid managed-care organizations we cover: Amerigroup AGP, Centene CNC, Molina Healthcare MOH, and WellCare Health Plans WCG. On the one hand, rising unemployment leads to increased Medicaid eligibility and enrollments. On the other hand, state budgets have come under significant strain from falling tax revenue and rising expenses, and Medicaid is a prime target for cuts.