Shares of health insurance companies WellPoint and Aetna dropped in the second quarter, as an unstable market and concerns over Medicare costs took their toll on earnings, according to a MarketWatch report.
WellPoint reported a more significant drop than Aetna (5.07 percent), with officials citing higher-than-expected medical costs for seniors under the Medicare Advantage plan. The company's medical loss ratio, or the percentage of revenue spent on treating patients, rose from 82.9-85.7 percent.
The company's earnings were still ahead of forecasts, however. Adjusted earnings were $1.83 a share, four cents more than the $1.79 prediction from analysts polled by FactSet Research. The company reported net income of $701.6 million, or $1.89 a share, compared with $722.4 million, or $1.71 a share, in the same period of 2010.
Aetna's shares fell 1.22 percent, possibly as a result of a broader market downturn. Net income was reported as $536.7 million, or $1.39 a share, compared with $491 million, or $1.14 a share, from the same period last year. Revenue was $8.34 billion compared to $8.55 billion in 2010.
Aetna's medical-loss ratio fell during the quarter from 81.8 percent in the same period of 2010 to 79.7 percent this quarter.
Read the MarketWatch report on WellPoint and Aetna shares.
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WellPoint reported a more significant drop than Aetna (5.07 percent), with officials citing higher-than-expected medical costs for seniors under the Medicare Advantage plan. The company's medical loss ratio, or the percentage of revenue spent on treating patients, rose from 82.9-85.7 percent.
The company's earnings were still ahead of forecasts, however. Adjusted earnings were $1.83 a share, four cents more than the $1.79 prediction from analysts polled by FactSet Research. The company reported net income of $701.6 million, or $1.89 a share, compared with $722.4 million, or $1.71 a share, in the same period of 2010.
Aetna's shares fell 1.22 percent, possibly as a result of a broader market downturn. Net income was reported as $536.7 million, or $1.39 a share, compared with $491 million, or $1.14 a share, from the same period last year. Revenue was $8.34 billion compared to $8.55 billion in 2010.
Aetna's medical-loss ratio fell during the quarter from 81.8 percent in the same period of 2010 to 79.7 percent this quarter.
Read the MarketWatch report on WellPoint and Aetna shares.
Related Articles on Health Insurance:
Seniors on Medicare Drug Plan Save Around $12K Annually
Missouri Stalls on Health Insurance Exchange Bill as Legislative Session Ends
CMS Issues ICD-9-CM Code Additions, Revisions