Insurers See Continued Membership Growth Under Obamacare
Aetna said its membership stood at 23.5 million at the end of 2014, a 6 percent increase. Meanwhile, Centene's quarterly profit more than doubled as it added Medicaid members.
The Wall Street Journal:
Aetna Raises Outlook As Revenue Beats Expectations
Aetna said its overall membership stood at 23.5 million at the end of 2014, an increase of about 6 percent. Last month, the company said it expected to report overall membership for last year to be higher than the 23.4 million members it had previously projected. Aetna, like its rival health insurers, has benefited from higher enrollments driven by requirements under the federal Affordable Care Act. However, the industry has maintained concerns over rising care costs, particularly for expensive new drugs to treat hepatitis C. (Calia, 2/3)
The Associated Press:
Aetna 4Q Profit Drops But Meets Forecasts, Guidance Climbs
Aetna’s fourth-quarter earnings slid 37 percent as the health insurer spent more to grow its business, but its performance matched expectations, and the company raised its forecast for the year. The Hartford, Conn., company said Tuesday that it now expects full-year operating earnings of at least $7 per share, up from its previous forecast for at least $6.90 per share. (2/3)
Reuters:
Health Insurer Centene's Profit Doubles As Membership Rises
Health insurer Centene Corp's quarterly profit more than doubled as it added more Medicaid members under Obamacare. (2/3)
Meanwhile, The Wall Street Journal suggests what to watch for when Gilead Sciences releases its fourth-quarter earnings -
The Wall Street Journal's Corporate Intelligence:
Gilead Sciences Earnings: What To Watch
Gilead Sciences Inc. is scheduled to announce its fourth-quarter earnings Feb. 3. Here is what you need to know. ... Last year, Gilead’s Sovaldi had the top-selling drug launch in history with more than $8.5 billion in sales through the end of September. The fourth-quarter results will give a hint how Gilead’s newest hepatitis C pill, Harvoni, approved Oct. 10, will fare. ... Harvoni sales face a big challenge that Sovaldi didn’t: competition. The Food and Drug Administration approved AbbVie Inc.'s Viekira Pak on Dec. 19. To win business from health plans, both companies are presumed to be offering discounts off their drugs’ list prices. The discounts will damp its revenues, which is why it will be worth listening for any indication how much Gilead is discounting Harvoni. (Rockoff, 2/2)
