UPDATE: Bank of America Downgrades Universal American to Underperform on Operating Outlook

Bank of America reduced its rating on Universal American UAM from Neutral to Underperform and reduced its price objective from $11 to $9.50. Bank of America said, "We are downgrading UAM shares to Underperform (from Neutral) with a view that companies with Medicare exposure are likely to face an increasingly difficult operating environment under a second Obama term. This includes more reimbursement rate cuts in 2013, the implementation of minimum medical loss ratios and an industry tax in 2014, expiration of STAR bonus payments in 2015 and a cloud of negative political risk. We are lowering our P.O. to $9.50 (from $11.00). Instead, we prefer companies with Medicaid exposure that should benefit from provisions outlined in health care reform legislation." Universal American closed at $9.20 on Tuesday.