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:6/27/2016)... Brooklyn, NY (PRWEB) , ... June 27, 2016 ... ... is using cutting edge technology to revolutionize the emergency ambulance transport experience for ... Many are aware of how Uber has disrupted the taxi industry through the ...
(Date:6/26/2016)... PLAINSBORO, N.J. (PRWEB) , ... June 27, 2016 , ... ... same sources, yet in many ways they remain in the eye of the beholder, ... Oncology (EBO), a publication of The American Journal of Managed Care. For the full ...
(Date:6/26/2016)... ... June 26, 2016 , ... Pixel Film Studios Released ... , "Film editors can give their videos a whole new perspective by using the ... CEO of Pixel Film Studios. , ProSlice Levels contains over 30 Different presets ...
(Date:6/26/2016)... NC (PRWEB) , ... June 26, 2016 , ... Brent Kasmer, a legally blind and ... to be personalized through a fitness app. The fitness app plans to fix the two ... currently only offer a one size fits all type program , They don’t ...
(Date:6/25/2016)... D.C. (PRWEB) , ... June 25, 2016 , ... ... discuss health policy issues and applications at AcademyHealth’s Annual Research Meeting June 26-28, ... their work on several important health care topics including advance care planning, healthcare ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... 23, 2016 Research and Markets ... Market by Type (Organic Chemical (Sugar, Petrochemical, Glycerin), Inorganic ... Coating, Parenteral) - Global Forecast to 2021" report ... The global pharmaceutical excipients market is projected to ... of 6.1% in the forecast period 2016 to 2021. ...
(Date:6/23/2016)... -- Roche (SIX: RO, ROG; OTCQX: RHHBY) announced that ... PCT (procalcitonin) assay as a dedicated testing solution for ... clearance, Roche is the first IVD company in the ... risk assessment and management. PCT is a ... in blood can aid clinicians in assessing the risk ...
(Date:6/23/2016)... Capricor Therapeutics, Inc. ... company focused on the discovery, development and commercialization ... in its ongoing randomized HOPE-Duchenne clinical trial (Halt ... its 24-patient target. Capricor expects the trial to ... 2016, and to report top line data from ...
Breaking Medicine Technology: