Bernstein: It's possible some price reform could be achieved for the healthcare marketplaces

Lance Wilkes (Senior Equity Analyst) 00:00.076

i think that's that's one of the great opportunities here because these health insurers when you're talking on this particular topic you're talking about a lot of policy uncertainty but you're really talking about a product line that's going to be zero percent of CVS business

Lance Wilkes (Senior Equity Analyst) 00:17.596

next year as they exit this business you're talking about a business that's going to be one percent of united healthcare 's business next year as they shrink by two thirds in this business this is a very small set of the overall health insurance market the more important aspect

Lance Wilkes (Senior Equity Analyst) 00:33.596

investors need to be looking at is this traditional insurance cycle is taking place here and it's really a super cycle and what you're seeing just like i mentioned with those companies a withdrawal of competition a withdrawal of capital that's going to lead to firming of prices

Lance Wilkes (Senior Equity Analyst) 00:47.476

improvements in margin and right now this is an industry that normally isn't cyclical and so consequently margins are down around fifty percent but multiples are also down multiples are not anticipating a recovery in margins which might be you know more traditional way that a

Lance Wilkes (Senior Equity Analyst) 01:04.356

cyclical business would react to industry dynamic like this