Insperity, Inc. (NYSE:NSP) announced that it has extended its 20-year relationship for medical and dental coverage with UnitedHealth Group’s (NYSE:UNH) subsidiary UnitedHealthcare. The companies have been in partnership since 2002.
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The extension of the contract includes medical coverage through 2026 and dental coverage through 2024. Also, it includes administrative cost savings beginning in 2022, with additional savings as future growth objectives are achieved.
With this deal, Insperity seeks to use UnitedHealthcare’s provider networks and clinical care programs to provide its worksite employees with premium healthcare benefits.
Insperity’s Senior Vice President, Jim Allison, said, “This extension will further enhance that value through significant administrative cost savings over the next five years, and continues the efforts of both companies to manage the trend of rising healthcare costs.”
Insperity Earnings
The company’s EPS for the fourth quarter of 2021 is estimated to reach $0.74. Insperity’s earnings beat estimates in all the quarters of 2020 and 2021, and given the impressive earnings history, it will likely beat estimates again in the fourth quarter.
Overall, the analysts are cautiously optimistic about the stock with a Moderate Buy consensus rating based on 1 Buy and 1 Hold. Download the mobile app now, available on iOS and Android.
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