Rising unemployment, swine flu and the threat of health care reform all ganged up on managed care companies in the third quarter and could hurt their performance heading into 2010. But most of the large publicly traded health insurers reported better-than-expected profit growth for the latest period, and analysts still see strong core businesses beneath the challenges facing the industry.

Health insurer WellPoint Inc. announced plans last spring to sell its pharmacy benefits management business to Express Scripts Inc. for about $4.68 billion. Analysts have wondered whether other managed care companies would consider a similar sale.

Drugstore operator and pharmacy benefits manager CVS Caremark Corp. is scheduled to report its third-quarter results Thursday morning. The following is a summary of key developments and analyst commentary for the period.

Managed care stocks raced out of the trading gate Wednesday, a day after the Senate's top Democrat signaled that Congress may miss a year-end deadline for passing health care legislation.

The Senate health care committee chairman said Tuesday the panel is investigating how health insurers price the coverage they sell to small businesses, which have struggled for years with soaring premiums.

Health insurer Humana Monday projected lower profit next year as it sees profit margin pressure on its Medicare business for the elderly and weaker enrollment in its commercial plans serving employers.

By Lewis Krauskopf

Health insurer Humana Inc. rode its strong government business in posting a 65 percent jump in third-quarter profit Monday, as bulging membership and premiums from Medicare Advantage overcame a lackluster commercial segment hampered by the weak economy.

Stocks rallied Thursday, rebounding off of the prior session's rout, after reports showed the economy grew more than expected last quarter and jobless claims fell. The Dow jumped more than 2 percent—its best day since July.

Stocks rallied Thursday, rebounding off of the prior session's rout, after reports showed the economy grew more than expected last quarter and jobless claims fell.

Health insurers UnitedHealth Group Inc. and WellPoint Inc. have said they expect operating income to drop next year, as employers continue to cut jobs and decrease the number of people covered by their insurance.

Stocks rallied Thursday, rebounding off of the prior session's rout, after reports showed the economy grew more than expected last quarter and jobless claims fell.

Futures pointed to a positive open for Wall Street on Thursday ahead of the all-important U.S. third-quarter gross domestic product data.

Stocks tumbled to session lows late Wednesday, with the Dow down more than 100 points, as worries about the recovery gripped the market.

Stocks were lower at the halfway point Wednesday as investors shrugged off some good news and worries about the recovery gripped the market.