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3 Horrendous Health-Care Stocks This Week

Keith Speights
February 22, 2013

It's been a wet week for much of the U.S. Shareholders of several health care stocks probably feel like they have been soaked this week regardless of the weather where they live. Here are three horrendous health-care stocks for the past five days that have dampened the spirits of investors.

When it rains, it pours
You know what they say: "When it rains, it pours." Internet health insurance broker eHealth (NASDAQ: EHTH) experienced the displeasure of experiencing that old adage firsthand over the last couple of weeks. The company made our list of horrendous health-care stocks last week after shares fell 21% on disappointing earnings results and guidance. Now, it has the dubious distinction of making a repeat appearance.

Shares dropped another 15% this week. Some of this decline probably stems from continued repercussions from the poor earnings and lower-than-expected guidance. The other culprit, though, was an announcement by the Centers of Medicare and Medicaid Services, or CMS, about plans to cut Medicare Advantage reimbursement rates. That news hit many insurers in the Medicare Advantage market, particularly Humana (NYSE: HUM), which saw shares fall by as much as 8% before rebounding somewhat.

eHealth felt the pain more than others. That's probably because the company already will be in a difficult position as it tries to compete amid new state health insurance exchanges. Medicare cuts could make a bad situation even worse.

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