Aetna's 1Q Profit Plunges 13%

Health insurer Aetna released its financials for the first three months ended March 31, 2012, and net income dropped 13 percent, from $586 million in 2011 to $511 million this year.

Total benefits and expenses leaped 8.6 percent for Aetna in what may become a trend for the health insurance industry. Today, a Goldman Sachs estimate and a Kaiser Family Foundation report estimated that health insurers will have to pay up to $1.4 billion in profits from last year due to the medical loss ratio.

Aetna's total revenue in the first quarter of fiscal year 2012 hit $8.92 billion, a 6.3 percent increase from the $8.39 billion recorded in the first quarter of FY 2011.

Aetna currently has 17.9 million people enrolled in their medical plans, which include commercial, Medicare Advantage, Medicaid and Medicare Supplement. That total is slightly higher than its membership total from the first quarter of last year, which was 17.8 million. In the quarter ended Dec. 31, 2011, Aetna's medical membership was more than 18.4 million people.

More Articles on Aetna:

Aetna Proceeds With 8% Rate Hikes in California Despite Opposition

Out-of-Network Illinois Surgery Center Battles Aetna Over $3.4M in Bills

Aetna CFO: We Can Serve Dual Eligibles

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