Aetna’s Earnings Rise Amid Moderate Medical Costs

via Wall Street Journal

Aetna cited disciplined pricing and continued moderate medical cost trends for the drop in the company’s key medical-benefit ratio.

Aetna Inc. raised its full-year forecast for the fourth time this year and reported better-than-expected earnings in its third quarter as a key measure of the company’s medical costs fell.

Aetna now projects 2015 operating earnings per share between $7.45 and $7.55, up sharply from its previous guidance of at least $7.40 a share.

”As we finish out the year and look toward 2016 and beyond, we are well-positioned across a number of major growth opportunities, including Medicare and Medicaid,” said Chief Executive Mark T. Bertolini.

As for 2016, Aetna said it was aiming for at least low double-digit earnings growth, saying it sees potential for expansion in Medicare and Medicaid membership.But it flagged challenges including losing some business from large national employers that decided to offer workers plans from multiple insurers.

Read the full article here

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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