Aggressive Guidance And Underwriting RiskGuidance implies an ambitious improvement in medical loss ratio and elevated membership growth, creating doubts that underwriting and utilization trends can support the projected margins.
Policy And Subsidy ExposureAnalyst increased the probability that enhanced marketplace subsidies could expire, lowering the price target and highlighting the company’s sensitivity to policy-driven enrollment and revenue shifts.
Profitability Pressure From Medical CostsQuarterly results showed a materially higher medical loss ratio and an operating earnings shortfall, reflecting rising medical costs and utilization pressures that hurt profitability.