Aetna Forcing 600,000 to Lose Coverage to Raise Profits

AetnaSam Stein reports on Huffington Post:

Health insurance giant Aetna is planning to force up to 650,000 clients to drop their coverage next year as it seeks to raise additional revenue to meet profit expectations.

In a third-quarter earnings conference call in late October, officials at Aetna announced that in an effort to improve on a less-than-anticipated profit margin in 2009, they would be raising prices on their consumers in 2010. The insurance giant predicted that the company would subsequently lose between 300,000 and 350,000 members next year from its national account as well as another 300,000 from smaller group accounts.

“The pricing we put in place for 2009 turned out to not really be what we needed to achieve the results and margins that we had historically been delivering,” said chairman and CEO Ron Williams. “We view 2010 as a repositioning year, a year that does not fully reflect the earnings potential of our business. Our pricing actions should have a noticeable effect beginning in the first quarter of 2010, with additional financial impact realized during the remaining three quarters of the year.”

Read More: Huffington Post

, , ,

  • Word Eater

    So the take away is that insurance companies shouldn’t be publicly traded, right?

    Either that or every insurance plan could come with a few shares of stock in the providing company.

  • Word Eater

    So the take away is that insurance companies shouldn't be publicly traded, right?

    Either that or every insurance plan could come with a few shares of stock in the providing company.

21
More in Aetna, Capitalism, Corporation Watch
Yahoo, Verizon: Our Spy Capabilities Would ‘Shock’, ‘Confuse’ Consumers

Kim Zetter writes on Wired's Threat Level: Want to know how much phone companies and internet service providers charge to funnel your private communications or records to U.S. law enforcement...

Close