Here are four things to know.
1. Aetna reported net income of $1.2 billion in the three months ended June 30, compared to $791 million in the same period of fiscal year 2016. The payer attributed the profit jump to strong performance in its healthcare segment and a large year-over-year decline in estimated risk adjustment payables for the previous year in its individual and small group ACA-compliant plans.
2. Although Aetna’s profits rose, the payer reported a decrease in revenue for the second quarter of fiscal year 2017 due to lower premiums in its healthcare segment, including lower ACA-compliant plan membership. Aetna saw revenues of $15.5 billion in the second quarter of this fiscal year compared to $16 billion in the same period a year prior.
3. Aetna’s operating expenses fell year-over-year in the second quarter of fiscal year 2017. The payer reported operating expenses of $2.6 billion in the second quarter, down from $2.9 billion recorded in the same time in fiscal year 2016. Lower transaction and integration-related costs, suspension of the ACA’s health insurance tax and expense management initiatives drove the year-over-year decrease.
4. Despite year-over-year improvement in Aetna’s second-quarter financial results, the payer’s net income for the first six months ended June 30 was $822 million, down from $1.5 billion recorded in the first six months of fiscal year 2016.
More articles on payer issues:
15 key dates for ACA insurance marketplace ahead of open enrollment
Managed Medicaid recipients report greater satisfaction than commercial plan members
Pennsylvania eases Highmark’s reporting requirements for Allegheny Health investments
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
