Health insurers face pricing and use challenges as they head into fall, but some managed care organizations will still be able to deliver solid earnings growth, according to a Jefferies analyst.

Analyst David Windley said in a Tuesday morning research note that health care use is no longer slowing like it has been, a trend that has helped insurer performance in past quarters. He also noted that insurers also have to deal with competition over the price of their coverage.

But Windley said large, diversified companies with strong track records will continue to do well, and he recommends owning Hartford, Conn.-based Aetna Inc., Minnetonka, Minn.-based UnitedHealth Group Inc. and Bloomfield, Conn.-based Cigna Corp., three of the five largest U.S. health insurers.

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