Aetna Reports Revenue Up As Medicare, Medicaid Plans Perform Well
But the insurer lowered its forecast because of membership declines in commercial policies and losses from its business on the health law marketplaces.
The Wall Street Journal:
Aetna Revenue And Profit Rise
Aetna Inc. said revenue and profit rose in its latest quarter, but the insurer is still struggling with pressure in the Affordable Care Act business, which it will largely exit next year. Revenue grew in Aetna’s government business managing Medicare and Medicaid plans, which was partially offset by membership declines in commercial products. Profit rose on higher fees and other revenue in Aetna’s core health-insurance business and lower general and administrative costs. (Wilde Mathews and Hufford, 10/27)
The Associated Press:
Aetna Tops Street 3Q Expectations, Narrows 2016 Forecast
Aetna's third-quarter earnings rose nearly 8 percent to top Wall Street forecasts, as growing government business and cost cutting countered higher costs from the health insurer's Affordable Care Act coverage. But the nation's third-largest insurer narrowed its 2016 forecast just below analyst expectations heading into the year's final months. (Murphy, 10/27)
Modern Healthcare:
Aetna Profits Bolstered By Medicare, Medicaid. Insurer Confident Merger With Humana Will Close.
Membership gains in Medicare and Medicaid bolstered Aetna's third-quarter earnings, despite pressures stemming from its public exchange business. Aetna also stressed Thursday that it remains confident its multibillion-dollar merger with rival insurer Humana will close in 2017. Hartford, Conn.-based Aetna's third-quarter net income jumped 7.8% to $603.9 million compared with the same period in 2015, and revenue was up by 5.5% year over year, totaling $15.78 billion. (Livingston, 10/27)
And on another proposed insurance merger —
St. Louis Post Dispatch:
Missouri Insurance Regulator Calls Public Hearing On Anthem-Cigna Merger
Missouri's top insurance regulator has scheduled a public hearing to review another mega-insurance tie-up, this time between Anthem Inc. and Cigna Corp. The public will have an opportunity to listen to officials with the Missouri Department of Insurance explain the reasoning behind the merger. And it will give the department the opportunity to question the insurance representatives and opponents about the merger and its effects. (Liss, 10/27)
