Health insurer Aetna adjusts to rising medical costs heading into 2010
On the Call: Aetna CFO Joe Zubretsky
By The Associated Press | Associated Press | Oct 29, 09 11:25 AM CDT in
Business
Health insurers UnitedHealth Group Inc. and WellPoint Inc. have said they expect operating income to drop next year, as employers continue to cut jobs and decrease the number of people covered by their insurance.
Aetna Inc. Chief Financial Officer Joe Zubretsky also said Thursday during a conference call with analysts that the company's commercial enrollment will fall this year due to the tough economy, but its total medical enrollment will grow.
Aetna also has struggled the past couple quarters with medical costs that rose faster than expected. But Zubretsky said the company has adjusted pricing and is taking other measures to correct that.
QUESTION: Does that mean earnings next year is expected to be higher or lower than in 2009?
RESPONSE: We are not giving any earnings guidance at this point, but we clearly believe the commercial medical benefit ratio will improve and will have a better managed spread between our achieved yields and our experienced trends.
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