Aetna’s Profits Rise After Managed Care Plan Purchase
The insurer's second quarter earnings increased 17 percent as it reaped enrollment and revenue gains from its acquisition of the managed health care company Coventry Health Care Inc.
The Associated Press/Washington Post: Health Insurer Aetna's 2nd-Quarter Profit Rises 17 Percent, Helped by Coventry Acquisition
Aetna Inc.’s second-quarter earnings jumped 17 percent, and the health insurer raised its 2013 forecast as it reaped revenue and enrollment gains from its acquisition of fellow insurer Coventry Health Care. The Hartford, Conn., company said Tuesday that it earned $536 million, or $1.49 per share, in the three months that ended June 30. That's up from $457.6 million, or $1.32 per share, a year ago (7/30).
The Wall Street Journal: Aetna Earnings: Membership Keeps Growing
In May, Aetna acquired the managed-health-care company Coventry Health Care Inc. to bolster its presence in government-financed health care. The cash and stock deal, worth $5.7 billion when announced in August, added about 3.7 million medical members and 1.5 million Medicare Part D members. While Aetna's revenue has improved over the past year, its profit came under pressure as consumers started to return to former health-care usage patterns amid an improving U.S. economy (Warner, 7/30).