Both Aetna and Humana mentioned the unsuccessful Aetna merger in their latest earnings reports for their financial success or losses. It is clear to see who has benefited from the failed deal so far.
A court decision in favor of the Department of Justice blocked the Aetna-Humana agreement previously this month partly because of the concerns with competition in the Medicare Advantage (MA) market. The Louisville-based payer got a $947 million pre-tax payment as part of the failed merger, which involves the contractual breakup fee of $1 billion Aetna had accepted to pay Humana.
The two other health insurance giants that proposed to merge around the similar time as Aetna and Humana – Anthem and Cigna – didn’t end their deal after it was blocked in court on antitrust grounds. The Anthem-Cigna breakup fee is $1.85 billion, though Cigna is also looking more than $13 billion in damages with a lawsuit it submitted against Anthem shortly after the court blocking.
Positive Q1 of Humana comes after it posted a $401 million loss in the Q4 2016. The company at that time blamed the $483 million write-off related to the Affordable Care Act (ACA) risk corridor payments as the reason for the loss in that quarter. For all of 2016 year, Humana claimed that it had a $614 million profit – down from $1.3 billion in the year of 2015.
On the day of Wednesday, Humana asserted that it continues to find success with its 2.8 million MA members. This is consistent with Broussard’s statements at Humana’s annual shareholders’ meeting previous month. At that time, he said the company planned to concentrate on Medicare Part D and MA sufferers. The company analyzes potential progress in the aging baby boomer population.
While Humana observes opportunities in Medicare, it feels the opposite about the ACA exchanges. Of Humana’s total 14 million members, the insurer has less than 200,000 members in the individual market. Humana cut its individual members down to eleven states this year and plans to prevent offering all ACA exchanges plans in the year of 2018.
Your email address will not be published. Required fields are marked *
Aetna Announces The Completion of $1 Billion Bond Public Offering
Aetna Declares A Brighter Experience For Entire Members of Aetna Dental Team
Urgent care chain utilizes patient feedback to empower performance
Patrick Conway is quitting CMS to supervise BCBS North Carolina
Copyright© 2015 Healthcare insurance News All Right Reserved