Becker's Hospital Review

45 PAYER ISSUES PAYER ISSUES Aetna's Q2 Net Income Up 33% By Emily Rappleye H artford, Conn.-based Aetna saw net income soar in the second quar- ter to $731.8 million, a 33 percent increase from the same period last year. Operating earnings per share are up to $2.08, a 37 percent in- crease from $1.69 per share in the second quarter of 2014. Year-to-date profits hit $1.5 billion, compared to $1.2 billion at this time in 2014. Based on these results, the company now projects full-year 2015 operating earnings per share to hit a minimum of $7.40. In the first quarter, Aetna had forecasted a per share mini- mum of $7.20. Total revenue for the second quarter is up 5 percent from last year, at $15.2 billion. For the year so far, the company reported $30.3 billion in total revenue, a 7 percent increase from $28.5 billion total revenue for the same period in 2014. Total medical membership remained static, at roughly 23.7 million members, due to growth in its commercial ASC products and government business offset by a decline in commercial in- sured products. Aetna noted a 16 percent increase in consumer-di- rected health plans compared to enrollment at the end of June last year. It now has 4.1 million mem- bers enrolled in consumer-direct- ed plans. e company also saw a 10.8 percent uptick in Medicare Ad- vantage enrollment, to 1.23 mil- lion members from 1.11 million in June 2014. Aer the company closes its $37 billion acquisition of Humana, these numbers could change dramatically, as Humana's revenue is derived primarily from Medicare Advantage plans. "Our performance continues to demonstrate the execution of Aetna's growth strategy and the power of our diversified business portfolio. We believe our proposed acquisition of Humana will further that strategy, delivering both sig- nificant value to customers and at- tractive returns for shareholders," Aetna Chairman and CEO Mark Bertolini said in a statement. n How The 'Big 5' Health Insurers Fared in Q2 By Ayla Ellison A etna reported net income of $731.8 million on revenue of $15.2 billion for the second quarter of FY 2015, up from net income of $548.8 million on $14.5 billion in revenue for the comparable period of last year. Anthem reported net income of $859.1 million on revenue of $20 billion for the second quarter of FY 2015. The health insur- er reported net income of $731.1 million on $18.5 billion in revenue in the comparable period of last year. Cigna reported net income of $588 mil- lion on revenue of $9.5 billion for the second quarter of FY 2015. The health insurer report- ed net income of $573 million on $8.7 billion in revenue in the second quarter of last year. Humana reported net income of $431 mil- lion on $13.7 billion in revenue for the sec- ond quarter of FY 2015, up from net income of $344 million on $12.2 billion in revenue for the same period of 2014. UnitedHealth Group reported net income of $1.6 billion on revenue of $36.3 billion for the second quarter of FY 2015. The health insurer reported net income of $1.4 billion on revenue of $32.6 billion in the same period of last year. n

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