Aetna 3Q (third-quarter) earnings increased almost 8% to top Wall Street forecasts, as growing government business and price cutting countered higher prices from the health insurer’s coverage under the health care law of President Barack Obama.
But the nation’s 3rd greatest insurer narrowed its 2016 forecast merely below analyst expectations heading into the final months of the year, and its stock fell in the day of Thursday trading. Aetna 3Q reports 8% higher profit.
The enrollment of Aetna in the Medicaid and Medicare rose 11% to almost 4.5 million individuals, and the insurer stated on the day of Thursday that segment now contributes about half of its complete health care premiums. While Aetna 3Q reports 8% higher profits.
Enrollment in the much higher commercial business of the insurer fell in contrast with the last year’s quarter. Aetna hopes an operating loss of $350 million before taxes this year from its individual commercial coverage, most of which is sold on the Patient Protection and Affordable Care Act’s public exchanges.
Aetna has stated that it has been swamped by higher-than-expected prices from that business, and it declared in the month of August that it’ll chop its exchange participation down to 4 states in the year of 2017, from 15 this year. The company covers over 775,000 individuals on the exchanges.
Health insurance is the core product of Aetna, and most of the 23.1 million individuals it covers come from commercial insurance sold through employers or straightly to individuals.
Overall, the nation’s 3rd-greatest health insurer gained $603.9 million in the 3 months that ended on the day of Sept. 30. That is up from the $560.1 million previous year. Earnings adjusted for one-time items came in at $2.07 each share, and operating revenue rose 5% to $15.74 billion.
Industry analysts had hoped earnings of $2.04 each share on $15.73 billion in revenue, in accordance to FactSet.
Aside from addressing with the issues of the health care law, Aetna also has been battling to secure its $34 billion purchase of rival Humana Inc. a deal that will make it one of the nation’s greatest Medicare Advantage providers. The U.S. Department of Justice sued previous summer to block that agreement and another key acquisition, Blue Cross-Blue Shield carrier Anthem Inc.’s proposed purchase of Cigna Corp.
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