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Aetna profits up on member, premium increases

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Aetna

Aetna has announced that its second-quarter profits have gone up 6.4 percent for its second quarter, courtesy of both rising membership numbers and a raise in premiums. The company earned $480.5 million during its second quarter, compared with profit of $451.3 million during the same period the previous year. The profit increase was fueled by a growth in revenue, which rose 15 percent to $7.83 billion from $6.79 billion.

So, how did it pull off these results? Clearly, one factor was its respectable medical benefit ratio, i.e. the percentage of each dollar of premium it spends on healthcare costs. The ratio was 81.9 percent this quarter, compared with 81.5 percent in the same quarter last year. Meanwhile, medical membership rose 0.2 percent from the first quarter to 17.5 million.  

According to the Wall Street Journal, many analysts see Aetna as the best-positioned player in the managed care business. Unlike its peers, Aetna hasn't had to cut earnings forecasts, and it expects further membership growth.

To learn more about Aetna's performance:
- read this Associated Press piece
- read this Wall Street Journal article (sub. req.)

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Comments

I know how they are making so much profit, but charging its insured to death! for the $10,000 a year it costs us just to have coverage I am sitting here waiting for them to approve an MRI for my back. I've been in pain for 2 months, having done everything I could. My doctor explained to the nurse that I was sitting in the office CRYING with pain, but I guess that didn't rate approval from the blood sucking scum at Aetna.

And the CEO has a comp package of over 17 million.
Having a health care system that is profit driven is immoral, unethical, and punitive to people who are already in a weakened state. It's obscene. At least socialized medicine levels the playing field. If we truly wanted to create a fair and equitable national health care plan, we could. Companies like Aetna and the like have no vested interest in health-care reform. They're more concerned with keeping their share holders happy.
Sounds like a conflict of interest for medicine in general.

Saw the Aetna CEO on tv with the President tonight. He seemed to avoid answering the question put to him about company profits. You know what they say, if it walks like a pig and talks like a pig what else can it be.

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