The Administrator of the CMS (Center for Medicare & Medicaid services) said that in June 2025, announcing that America’s health insurers had voluntarily agreed to fix the way they deny claims.
A year on, initial denial rates rose to 11.6%. In managed Medicaid, 44% of inpatient claims are denied on first submission. Kodiak puts hospital revenue leakage at $48.4 billion against $38.6 billion the year before, so 25% more money lost during the year of the pledge, out of an industry running 1% margins.
One business sits at the intersection of this trend, and I’ve been buying it. It’s profitable, it has customers renewing at 97% and spending more every year they stay, and management has beaten and raised guidance nine quarters running. The stock’s down 40% because the sponsors who took it public own a third of it and can’t stop selling. And I’m now seeing a supportive technical setup which is getting me interested in initiating a position.
That’s the idea I’ll be presenting today.
I believe this stock has somewhere between 47% and 100% upside. The street just rerated this to outperform and raised their targets, and I agree with them
If this trade goes our way, I believe there is a very good chance that we make at least $400 for every $1,000 invested in the stock.
By the way, if you join Babylon Burns today, your annual dues would be less than that. Until September 8th, we’re running our launch discount where you get to lock in $100 in savings and pay only $299 instead of $399 if you join Babylon Burns now.
Substack give you 7 days to ask for a refund, so it’s totally derisked for you. All it really takes is for one good pick to pay for itself, and members have already fully paid for their membership through picks I’ve layed out here.
So join today, unlock today’s pick and my review of all recent movements in the portfolio. You’ll get all my past research, and if you pick the annual plan, access to the web-app which presents the entire portfolio, my chart library, and gives you in real life trade alerts so you know when I’m increasing or cutting positions.
