Aetna grows profit by 75.5% in Q4: 3 things to know

Morgan Haefner - Print  | 

Aetna recorded a 75.5 percent increase in fourth quarter profit in 2017 despite revenue declines.

Here are three things to know about the payer's results.

1. Aetna, which is slated to be acquired by CVS Health for $69 billion, posted net income of $244 million in the fourth quarter ended Dec. 31, 2017. That's up from $139 million recorded in the same period the year prior. Aetna primarily attributed the increase to lower restructuring and transaction costs and continued growth in its government business.

2. In the fourth quarter of 2017, Aetna cut its expenses by 7.3 percent year over year to $14.3 billion. At the same time, Aetna saw revenue fall 5.6 percent year over year to $14.9 billion. The insurer said the decrease was primarily due to lower premiums in Aetna's healthcare segment because of its decision to exit the ACA individual marketplaces in 2017.

3. Aetna's full-year net income took a hit from the termination of its merger with Humana. Aetna posted full-year net income of $1.9 billion for 2017, compared to $2.3 billion a year prior.

More articles on payer issues:
OSF HealthCare still negotiating with payers ahead of Presence acquisition
Aetna's executive vice president of consumer health and services to step down
Oscar Health: 66% of member interactions were virtual in 2017

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.