Aetna's profit drops....Would have fallen even more if they hadn't shaken down customers for more $$

[marmar]

Quick, everyone, sonnets for my POS insurance provider. :cry: :nopity: :nopity:



Aetna 4Q profit falls 15 percent on medical costs
Insurer Aetna says 4th-quarter profit slid as medical costs in commercial business grew

By Tom Murphy, AP Business Writer , On Friday February 5, 2010, 9:06 am


INDIANAPOLIS (AP) -- Health insurer Aetna Inc. said Friday its fourth-quarter profit fell 15 percent, as it continued to struggle with rising medical costs, which hurt its performance every quarter last year.

The Hartford, Conn., managed care company said medical costs, its largest expense, climbed 14 percent to $6.1 billion in the three months that ended Dec. 31. That hit was partially offset by a 9 percent increase in premiums.

Aetna has tied the rising costs to the slumping economy. But analysts also have said the insurer set prices too low, which helped it gain enrollment but hurt the company when medical costs rose.

CEO Ronald Williams said in the third quarter the insurer's 2009 pricing wasn't what Aetna needed to deliver the results it had been delivering, but the company took several steps to fix that. ...........(more)

The complete piece is at: http://finance.yahoo.com/news/Aetna-4Q-profit-falls-15-apf-1160966411.html?x=0

[mediaman007]

1. They are still making money...just not as much!

Complaining about not making enough profit. That's what the Republicans worry about.

[Fixed_Based_Operator]

5. Darn punks

Aetna is the insurance carrier for my company, and they raised the rates on us as well as limited our options to option.

[AndyA]

2. It wouldn't have anything to do with the CEO's compensation, I'm sure...

Ron Williams - Aetna

Total Compensation: $24,300,112

Details: Williams earned $24,300,112 in total compensation for 2008, with more than half of that ($13,537,365) coming from option awards. He also received an additional $6,456,630 in stock awards to go along with his base salary of $1,091,764.

Personal use of a corporate aircraft and vehicle, as well as financial planning and 401(k) company matches added up to $101,487 for Williams.

Read more: http://www.fiercehealthcare.com/story/aetnas-ron-williams-ceo-compensation/2009-05-14#ixzz0efrFvbnN

F*ck these people. Seriously. NO ONE IS WORTH THAT MUCH MONEY. NO ONE! :mad:

[laughingliberal]

3. Some verification of what I've been saying

Aetna set prices low and gained enrollment which lowered their profits. Other companies raised premiums, lost enrollment, but saw higher profits. The raising of premiums is the only way they are propping up their profits and they are way close to the point that premium increases will start to lose them so many customers that they will see net losses.

From the article:

"Aetna competitors UnitedHealth Group Inc., WellPoint Inc., Humana Inc. and Cigna Corp. all reported fourth-quarter profits that either met or exceeded Wall Street expectations. But each also saw sizable enrollment drops compared to the same quarter of 2008.

Several health insurers have been hit by enrollment losses, as companies cut jobs and trimmed the number of people covered by employer-sponsored health insurance."

It is unsustainable over the next few years. This is the reason for the Senate insurance company bailout bill. Now that it is so up in the air we have a nice 'deficit' commission which will be coming back recommending privatization of Medicare. They are not going to sit by and let all those customers escape their clutches and the Republicans and Conservadems in the Senate will make sure they don't have to.

[Warpy]

4. Medical costs my flabby old ass

Their profits took a dive because they spent so much making sure those of us they've decided don't have a right to health care don't get any sort of a decent reform plan out of Congress.

Assholes.

[Fixed_Based_Operator]

6. This sounds HIGHLY likely

They went on a limb stuffing the pockets of lobbyists. When you play with fire...

[Jennicut]

7. Just one of many insurance companies here in CT. Actually, some of my friends work at these

companies. But I still don't care if they fail.