The COVID-19 pandemic has highlighted the importance of healthcare plans. In addition, as the population is aging, the demand for healthcare plans is on the rise. Moreover, the industry is considered relatively stable in terms of performance, given an almost inelastic demand for healthcare plans, making it an investor favorite during volatile market conditions. Furthermore, the emergence of advanced smartphone apps and new insurance schemes would contribute to the market’s growth in the near future. Therefore, both Clover Health Investments (CLOV) and Centene (CNC) should benefit.
CLOV operates as a Medicare advantage insurer. Through its Clover Assistant, the company provides preferred provider organization and health maintenance organization health plans for medicare-eligible consumers. CNC operates s a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. The company offers its services through primary and specialty care physicians, hospitals, and ancillary providers.
