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High medical costs, low pricing hurts managed care

San Diego Union-Tribune, January 2, 2009

Managed care stocks are ailing, as higher-than-expected medical costs have burned up health insurers' profits and companies have faced potential exposure to failed investment banks. And officials say insurers set themselves up for a tough year last year by pricing premiums too low to cover medical cost outlays. Competition also led insurers to take risks by pricing coverage low.