Search
 

Aetna loses on merger, plans more ACA pullbacks

Aetna has recorded a loss for the first quarter of the year, of $381 million, due to costs associated to its planned merger with Humana.

By Marlene Y. Satter | Updated on May 03, 2017
What's next for the insurer? (Photo: iStock)

Aetna has recorded a loss for the first quarter of the year, of $381 million, due to costs associated to its planned merger with Humana. The merger was blocked by a federal judge in January for threatening to harm competition in Medicare Advantage.

According to a Modern Healthcare report, the $37 billion merger — which cost Aetna $1 billion as a breakup fee paid to Humana — was expensive on plenty of other fronts, including millions in legal and financial fees. The deal was expected to pressure Aetna’s bottom line lower, but despite all the outlay — and additional losses from the company’s exchanges under the Affordable Care Act — the Q1 results still beat Wall Street’s financial estimates at $737 million.

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 Broker Expo 2025 (BPRO)Event

The premier educational and networking event for employee benefits brokers and agents.

Get More Information
 

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.