Search
 

Aetna boosts forecast on higher enrollment

Enrollment in Aetna plans reached 23.6 million in the quarter, an increase of 470,000 members from the second quarter. Aetna will offer coverage in 18 Affordable Care Act exchanges in 2015.

By Caroline Chen | Updated on October 28, 2014
(AP Photo/Jessica Hill)
Oct. 28 (Bloomberg) — Aetna Inc., the third-largest U.S. health insurer, raised its profit forecast for the year as enrollment increases.   Operating earnings this year will be $6.60 to $6.70 a share, above the previous forecast of $6.45 to $6.60, the Hartford, Connecticut-based company said today in a statement.   Net income for the third quarter was $594.5 million, or $1.67 a share, up 15 percent from $518.6 million, or $1.38, a year earlier. Profit excluding one-time items was $1.79 a share, beating the $1.58 average of 19 analysts’ estimates compiled by Bloomberg News. Revenue climbed 13 percent to $14.7 billion.   Enrollment in Aetna plans reached 23.6 million in the quarter, an increase of 470,000 members from the second quarter. Aetna will offer coverage in 18 Affordable Care Act exchanges in 2015. UnitedHealth Group Inc., the nation’s largest insurer, is expanding to as many as two dozen states. About 7.3 million Americans were enrolled in plans as of mid-August through the exchanges that are a centerpiece of the Patient Protection and Affordable Care Act.   The Congressional Budget Office expects about 13 million people to sign up for Affordable Care Act plans next year, more than double the agency’s projections for this year. Penalties for Americans who choose to go without health coverage double in 2015 to as much as 2 percent of their incomes, which may drive increased business for insurers.   Another 11 million people will be added in 2015 to Medicaid, the state-federal health program for the poor, from 7 million this year as a result of the law, the Congressional Budget Office said.   Aetna rose 0.6 percent to close at $79.18 yesterday in New York. The shares have gained 28 percent in the 12 months through yesterday.

With assistance from Alex Wayne in Washington.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 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.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.