Morning Briefing
Summaries of health policy coverage from major news organizations
Aetna Profits Beat Expectations Despite Losses From ACA Plans
The Wall Street Journal: Aetna Reports Surge In Profit And A Dark Spot On Results
Aetna Inc. became the latest health insurer to report losses on 2015 Affordable Care Act business, a dark spot as the company unveiled sharply higher profit for the fourth quarter. Though individual health plans are a small share of Aetna’s overall revenue and enrollment, which totaled 23.5 million at the end of 2015, they are drawing outsized attention amid questions about the future of the marketplaces that are at the heart of the federal health law. (Wilde Mathews and Steele, 2/1)
USA Today: Aetna Earnings Jump On Growth In Medicare, Medicaid Health Plans
U.S. health insurance giant Aetna (AET) beat Wall Street forecasts Monday as the company reported higher fourth-quarter profits and reaffirmed plans to complete its acquisition of smaller rival Humana this year. The Hartford, Conn.-based company credited the results in part to growth in membership and premiums as Aetna boosted its government business that sells Medicare and Medicaid health plans to U.S. consumers. (McCoy, 2/1)
The Associated Press: Aetna Lays Out Concerns About ACA Business
Aetna has joined other major health insurers in sounding a warning about the Affordable Care Act’s public insurance exchanges. The nation’s third-largest insurer said Monday that it has been struggling with customers who sign up for coverage outside the ACA’s annual enrollment window and then use a lot of care. This dumps claims on the insurer without providing enough premium revenue to counter those costs. (Murphy, 2/1)
The Associated Press: Aetna Tops 4Q Expectations, but 2016 Outlook Falls Short
Aetna wrapped up 2015 with a 38-percent surge in fourth quarter earnings but chased its better-than-expected performance with 2016 guidance that misses Wall Street forecasts. The nation's third largest health insurer said Monday it expects adjusted earnings of at least $7.75 per share in the new year. Analysts had been looking for per-share earnings $8.05, according to a poll by the data firm FactSet. Aetna recorded adjusted earnings of $7.71 per share in 2015. The insurer said its initial, 2016 guidance factors in an expected first-quarter drop in commercial health insurance enrollment and an anticipated modest rise in medical cost trends, among other factors. (2/1)
Bloomberg: Aetna CEO Has 'Serious Concerns' About Obamacare Sustainability
The head of the third-biggest U.S. health insurer said he has “serious concerns” about whether or not Obamacare’s new markets are sustainable, echoing criticism from other top for-profit insurers. “We continue to have serious concerns about the sustainability of the public exchanges,” Aetna Inc. Chief Executive Officer Mark Bertolini said on a call Monday while discussing the company’s fourth-quarter results. “We remain concerned about the overall stability of the risk pool.” (Tracer, 2/1)
