Navigation Links
Aetna 28 Percent Profit Drop Signals Storm Clouds for Healthcare

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

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:
(Date:11/27/2015)... ... 27, 2015 , ... Avid collector, Andrew Hawley from Vintage Rock Posters, announces ... This is one of Joplin's most famous and beautiful concert posters. The concert was ... in Ann Arbor. The According to Hawley, "It is hard to believe that Joplin's ...
(Date:11/26/2015)... MI (PRWEB) , ... November 26, 2015 , ... ... for substance abuse located in central Michigan, have come together on Thanksgiving Day ... specially produced video, available for viewing on the Serenity Point YouTube channel, patients ...
(Date:11/26/2015)... Toronto, ON and Cambridge, ON (PRWEB) , ... ... ... announced today the availability of a real-time eReferral system for diagnostic imaging in ... CTs, ultrasounds, X-rays, mammography, BMD and Nuclear Medicine tests directly from their electronic ...
(Date:11/26/2015)... ... ... The Catalent Applied Drug Delivery Institute today announced a ... selection in early phase drug development. The first of these is to be ... UK’s emerging life sciences companies, corporate partners, and investors, at Milton Park, Oxford, ...
(Date:11/26/2015)... San Antonio, TX (PRWEB) , ... November 26, 2015 , ... ... accomplishment! On November 19, 2015, our surgeons performed their 6,000th free flap breast ... Ledoux , “We wake up every day excited to rebuild lives and it’s an ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... , November 26, 2015 ... of the "Radioimmunoassay Market by Type ... Pharmaceutical Industry, Academics, Clinical Diagnostic Labs), Application ... Forecast to 2020" report to their ... announced the addition of the "Radioimmunoassay ...
(Date:11/25/2015)... , Nov. 25, 2015 ... addition of the "Global Brain Monitoring ... offering. --> ) has ... Brain Monitoring Devices Market 2015-2019" report ... and Markets ( ) has announced ...
(Date:11/25/2015)... Nov. 25, 2015  Amgen (NASDAQ: AMGN ) ... (BLA) with the United States ... a biosimilar candidate to Humira ® (adalimumab). Amgen ... submitted to the FDA and represents Amgen,s first BLA ... E. Harper , M.D., executive vice president of Research ...
Breaking Medicine Technology: