Monday, July 27, 2009
Pity the poor Aetna
For the second time this year the poor old health insurance scammer has had to cut its profit forecast. And what is the cause of this fiscal disaster for this icon of health insurance thievery? You and me.
Aetna Inc., the third-largest U.S. health insurer, cut its full-year earnings forecast for the second time in two months as rising medical costs eroded revenue gains from selling lower-priced policies.Imagine that! Poilcy holders are actuually expecting old Ma Aetna to pay for their helth care expenses. And those same people, in anticipation of the loss of their jobs, want to go out the door healthy. The nerve of those shameless people, using funds that were supposed to impress Wall St. But all is not lost, a good thief always has a backup plan.
Aetna’s net income for the second quarter fell 28 percent from a year earlier, the Hartford, Connecticut-based insurer reported today. The results, after adjustment for pension costs and a legal settlement, missed analyst estimates by 10 cents a share.
Chief Executive Officer Ronald Williams said in a statement that medical costs were “not fully captured in 2009 pricing.” In June, Aetna said the recession was raising expenses by spurring workers to use benefits before they lose their jobs. U.S. unemployment has continued to mount, last month reaching 9.5 percent, the highest in 26 years.
Aetna is raising premiums and trying to control costs through measures such as audits of high-volume hospitals or doctors, the company said in its statement. While rates in a quarter of contracts are already locked in for 2010, the company expects to benefit in the first quarter, Williams said on a conference call with analysts. Aetna’s willing to forego new business to be more profitable, he said.Raise the rates and get rid of doctors and hospitals who encourage good health among their patients. Ya just can't keep a good thief down.
“We have a sound business model that with hindsight was not adapted quickly enough to a changing environment,”
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