Navigation Links
Aetna 28 Percent Profit Drop Signals Storm Clouds for Healthcare
Date:8/4/2009

KING OF PRUSSIA, Pa., Aug. 4 /PRNewswire/ -- On July 27, 2009 Aetna Inc., one of the largest health insurers in America, announced a 28 percent drop in profit for Q 2 2009.

Mark Bertolini, Aetna's president, attributed the loss to "higher claim intensity, such as services rendered in a higher cost setting and more tests and procedures per visit, resulting in higher costs for emergency room, ambulatory, laboratory and preventive services." "We are taking immediate actions to address these issues," Bertolini added.

Commenting on the Aetna earnings statement, David McSweeney, COO of Healthcare Data Management, Inc. (HDM), a leading provider of health plan audits and analytics, said, "'Higher cost setting' is just another way of saying hospitals and doctors are hurting because of the economy and they need to generate more revenue. Immediate actions to address these issues will mean increasing premiums for employers."

McSweeney and two colleagues, Barbara Niehus, an actuary with more than 30 years of experience in the healthcare industry, and David Ermer, a Washington, D.C. attorney who specializes in healthcare law, have been conducting a campaign to alert employers with self-fund employee health plans to 11 unanticipated economic and legislative factors that are driving up healthcare cost. The trio authored an article on the subject for the International Foundation of Employee Benefit Plans, issued a press release and hosted a related Webinar.

"Aetna is a good barometer for what will continue to happen in the healthcare insurance industry," McSweeney said. "Their earnings report also cited an 'additional unfavorable reserve development' and 'lower-than-projected 2009 Medicare revenue.'"

According to McSweeney, Aetna's troubles could be the result of at least five of the 11 factors he, Niehus and Ermer identified: 1) forward buying of healthcare services in anticipation of job loss, 2) increasing use of COBRA, because of a government subsidy instituted by President Obama in the beginning of 2009, 3) the financial pressure being place on healthcare providers, 4) expanded dependent eligibility and 5) the growing disparity between Medicare and Medicaid and commercial payments.

The article, There's a Storm Coming for Self-funded Multiemployer Plans. The Wise Will Prepare Starting Now, and a recording of the webinar How to Prepare for the Storm that will Hit Self-funded Health Plans are available for download at www.hdminc.com


'/>"/>
SOURCE HDM, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Aetna Reminds Members Affected by California Wildfires Where to Call for Help
2. Shareholder Class Action Filed Against Aetna Inc. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
3. MD On-Line Expands Relationship with Aetna for Direct Claim Submission
4. Aetna HSA Online Video Wins 2007 Insight Award for Customer Advocacy in Healthcare
5. AMA Commends Aetna for Quality First Commitment
6. National Health Care Alliance Gains New Members Against Aetnas New Anesthesia Policy
7. Aetna Requires CAQH Core Rules Certification for Vendors
8. AGA Institute applauds delay of Aetna sedation restrictions
9. Prime Healthcare Services Enters Into Network Wide Contract With Aetna Health Plans
10. Fractured Atlas Offers Affordable Aetna Advantage Plans for Artists
11. Claimsnet Announces Agreement With Aetna for Electronic Claims and Remittance Processing
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... ... June 25, 2016 , ... Austin residents seeking Mohs ... College of Mohs Surgery and to Dr. Russell Peckham for medical and surgical dermatology. ... treatment for skin cancer. The selective fellowship in Mohs Micrographic Surgery completed by Dr. ...
(Date:6/25/2016)... ... 25, 2016 , ... As a lifelong Southern Californian, Dr. Omkar Marathe earned ... the David Geffen School of Medicine at UCLA. He trained in Internal Medicine at ... fellowship in hematology/oncology at the UCLA-Olive View-Cedars Sinai program where he had the opportunity ...
(Date:6/24/2016)... ... 2016 , ... A recent article published June 14 on E ... goes on to state that individuals are now more comfortable seeking to undergo not ... as calf and cheek reduction. The Los Angeles area medical group, Beverly Hills Physicians ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... Scientific Sessions in Dallas that it will receive two significant new grants to ... came as PHA marked its 25th anniversary by recognizing patients, medical professionals and ...
(Date:6/24/2016)... ... June 24, 2016 , ... Topical BioMedics, Inc, makers of Topricin and MyPainAway Pain Relief ... a minimum wage raise to $12 an hour by 2020 and then adjusting it yearly ... lost value of the minimum wage, assure the wage floor does not erode again, and ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... DUBLIN , June 23, 2016 ... "Global MEMS Devices Medical Market Analysis 2016 - Forecast to ... The report contains up to date financial ... reliable analysis. Assessment of major trends with potential impact on ... dive analysis of market segmentation which comprises of sub markets, ...
(Date:6/23/2016)... INDIANAPOLIS , June 23, 2016 /PRNewswire/ ... Diabetes Tomorrow,s Leaders Scholarship is any indication, the future ... today online at www.diabetesscholars.org by the Diabetes ... stand in the way of academic and community service ... scholarship program since 2012, and continues to advocate for ...
(Date:6/23/2016)... June 23, 2016 Research and ... Procedure Volumes: Global Analysis (United States, China, Japan, Brazil, ... report to their offering. ... for healthcare business planners, provides surgical procedure volume data ... trends with an in-depth analysis of growth drivers and ...
Breaking Medicine Technology: