Thesis
In my prior articles about HMS Holdings (HMSY), I noted that the company had recently reached a record high stock price on strong revenue growth and an ever-improving revenue mix that had shifted the company away from a dependence on federal and state government contracts. I also noted that the biggest risk facing the company was policy. A policy shift in healthcare could dramatically alter the company's business, which is largely dependent on Medicaid for revenue.
That said, recent developments around the Affordable Care Act ((ACA)) are enough of a reason to