Cigna And Humana Beat 3Q Profit Forecasts
Both health insurers reported better-than-expected profits. Cigna says higher enrollment in government plans fueled gains, while Humana cites growing Medicare membership.
Reuters:
Health Insurer Cigna Reports Better-Than-Expected Third Quarter Profit
Health insurer Cigna Corp (CI.N) reported a better-than-expected quarterly profit, helped by higher enrollments in its government plans and favorable medical costs. However, Cigna said it expected revenue growth in 2016 could be offset by reduction in customers in its individual plans, which are sold on exchanges created under the U.S. Affordable Care Act. (Penumudi, 11/6)
The Wall Street Journal:
Humana Reports Profit Growth As Medicare Membership Rises
Humana Inc., which in July agreed to be acquired by rival Aetna Inc., on Friday said Medicare membership growth lifted third-quarter profit. Strength in health care services, driven by Medicare, offset a soft commercial segment. Chief Financial Officer Brian Kane said the insurer expects “marked improvement” in the Medicare and individual commercial businesses next year, but added that Humana remains cautious about 2016 earnings growth expectations due to challenges in those segments. (Beilfuss, 11/6)
Reuters:
Humana Profit Beats On Individual Medicare Advantage Strength
Health insurer Humana Inc, which agreed to be bought by Aetna Inc for $37 billion in July, reported a better-than-expected quarterly profit as it added more members to its individual Medicare Advantage business. Humana, which manages large Medicare Advantage health plans for the elderly and disabled, said individual Medicare Advantage membership rose 14 percent to 2.74 million at the end of the quarter. (Banerjee, 11/6)
