Medicare, Medicaid Plans Have Boosted Health Insurers' Revenues by 6% Over Past Three Years

A Bloomberg Government study revealed that the Medicare and Medicaid portions of private health insurers have increased insurers' revenues from 36 percent to 42 percent over the past three years, according to a Washington Post report.

The study also predicts government funding will contribute even more to their revenues over the next three years as the Patient Protection and Affordable Care Act reaches full implementation in 2014, according to the report.

During the first three quarters of 2011, the five largest publicly traded health insurers — UnitedHealth Group, WellPoint, Aetna, Humana and Cigna — averaged an operating margin of 8.65 percent.

UnitedHealth Group recorded revenues of $25.3 billion in the third quarter of fiscal year 2011 alone, up 7 percent from last year. Humana saw its third quarter revenue jump 11.4 percent from 2010, reaching $9.3 billion. Many health insurers are expected to release next quarter's figures within the next month.

Related Articles on Health Insurer Finances:

California Health Insurers Bring in $105B in Revenue in 2010

Cigna's Net Income Falls 35% in 3Q

Aetna's 3Q Profit, Revenue Slip 1% From 2010

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