Why Clover Health Might Not Bring You Good Luck
Health-insurance specialist Clover Health (NASDAQ: CLOV) appears to have gotten caught up in 2021's meme-stock mania. Retail investors' attempt to bid up shares and squeeze out rivals' bets against the stock nearly tripled its price in June. But informed investors should weigh Clover's very real, tangible pros and cons carefully before deciding whether to buy in.
Clover Health is a health insurer with a Medicare contract focusing on Medicare Advantage, which offers plans that often incur lower out-of-pocket costs than the original program.
Medicare Advantage enrollment is growing year over year, according to the Better Medicare Alliance, with over 26 million people (42% of all Medicare beneficiaries) enrolled in Medicare Advantage as of March 2021. Enrollment has nearly doubled over the past decade, and it's projected to exceed 50% of total Medicare enrollment by 2030.
Source Fool.com