Health insurer Aetna has posted better-than-expected first-quarter profits as the company spent less on medical costs. Aetna’s CEO told analysts the company is still closely involved in the healthcare reform process. WNPR’s Harriet Jones reports.
Hartford-based Aetna reported that quarterly net income rose to $563 million, $1.28 per share, up from 95 cents per share, a year earlier. The company raised its full-year earnings forecast on the strength of the results. Aetna is the latest health insurer to easily top profit expectations this quarter, although worries over healthcare reform have held back investor enthusiasm. CEO Ron Williams told a conference call that there’s still considerable uncertainty in the reform process, and that Aetna is actively participating as regulations implementing the new law are written.
Aetna has advised investors that 2010 will be a "repositioning year," – which may mean higher premiums to reflect increased medical costs.
For WNPR, I'm Harriet Jones.