Shares of WellCare Health Plans Inc. have room to grow as government Medicare and Medicaid insurance plans expand, according to Barron’s.

The company is poised for strong growth as state and federal entities outsource more contracts to the private sector, Barron's said. An aging U.S. population and the extension of Medicaid coverage to more people in most states make further expansion of the programs a certainty, Barron's said.

Those factors make the stock attractive as a long-term investment, Barron’s said.

The stock (WCG) added 0.8 percent to $276.26 on Friday, but WellCare is 15 percent below its 52-week high in October.

WellCare acts as an intermediary between consumers and health-care providers whose services are paid for by Medicaid, the government program for the poor, and Medicare, a government plan offered to people older than 65 or with disabilities.

The stock remains about 15 percent below its five-year average forward price/earnings ratio, said Barron’s.