Health Net Inc. shares plunged Friday after the health insurer slashed its 2012 earnings forecast again and reported second-quarter results that fell far below analyst expectations.
The Woodland Hills, Calif., company said Friday it saw higher-than-expected costs from both commercial health insurance and Medicaid, which is the government-funded program that covers the poor and disabled people. It took a $61 million hit in the quarter because leftover claims mainly from the first quarter came in higher than it expected.
CEO Jay Gellert said in a statement the company is adjusting rates and taking other steps to achieve "substantial" improvement next year in its commercial business.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
