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Anthem Breach Proves Wisdom Of Owning UnitedHealth

The huge breach at Anthem (ANTM), formerly WellPoint, should be the last data point proving to investors that, in the health market, the best Information Technology wins.

Many investors have already heeded that call. While it's true that Anthem shares have advanced 111% in the years since the Affordable Care Act was signed in March 2010, those gains badly trail those members of the health insurance complex that have focused on technology, especially UnitedHealth (UNH), which is up 216.5% during that time. UnitedHealth also sells at a Price/Earnings multiple of 19.3, against just 15 for Anthem. This may cause many to consider Anthem a bargain. Think again.

Long before the ACA was being debated, UnitedHealth was buying technology companies and integrating them under the name OptumHealth. Before the ACA was passed, many of these acquisitions were made in the name of companies, like Ingenix, that were later combined with… Read More …