Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Aetna Inc    AET

Delayed Quote. Delayed  - 07/29 10:01:28 pm
115.21 USD   -0.50%
07/29 When Big Insurance Companies Merge, Who Benefits?
07/29DJCigna Misses, Cuts Guidance
07/29 AETNA : Earnings schedule for the week of 8/1/2016
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Aetna Ready For 'Dual Eligibles' Despite Commercial Focus - CFO

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/19/2012 | 09:55pm CEST
   By Jon Kamp 
   Of  
 

Aetna Inc. (>> Aetna Inc.) believes it can ably serve health-challenged patients covered by both Medicare and Medicaid, even though the company doesn't have a major stake in those markets.

Additionally, the commercially-focused health insurer doesn't need acquisitions to win business for "dual eligible" patients, according to Chief Financial Officer Joseph Zubretsky. Some of Aetna's big competitors have recently made deals with an eye on dual patients, and Aetna has faced questions about whether it has the right make-up for the market.

"I do believe we'll have the platforms built to be able to respond to this opportunity," Zubretsky said, speaking during an interview at Aetna's Hartford headquarters.

The market has significant potential, but will build over several years, giving Aetna time to grow its businesses from within, Zubretsky said. Meantime, Aetna has the capabilities within these businesses to address the kind of complex health problems dual patients often present, he said.

Dual patients, who represent a potential $300 billion market for health insurers, have become a hot topic as states and the federal government look for ways to better coordinate care and save money. These patients tend to rack up high costs due to their health challenges. A handful of states could have programs for covering dual patients up and running next year, and the market is expected to continue growing in subsequent years.

Managed-care companies could be big beneficiaries, but questions abound about which firms are best positioned to win state-by-state contracts. Analysts view Medicaid-focused insurers such as Molina Healthcare Inc. (>> Molina Healthcare, Inc.) and Centene Corp. (>> Centene Corp) as potential winners, and bigger insurers such as UnitedHealth Group Inc. (>> UnitedHealth Group Inc.) and WellPoint Inc. (WLP) are also expected to compete based on their presence in both the Medicaid and Medicare markets.

Aetna has modest stakes in markets for government-based plans. At the end of last year, roughly 90% of Aetna's 18.5 million medical members were on commercial health plan, which are typically plans provided through employers.

Citigroup analyst Carl McDonald recently said Aetna's valuation has been hurt by "the company's lack of government exposure". Still, Aetna shares are up 33% over the last year, helped by patients keeping a lid on health costs after the recession.

Competitors including UnitedHealth, WellPoint and Cigna Inc. (CI) have all recently made Medicare-focused acquisitions that could improve their chances in the duals market. Aetna has been wary of paying too much, however, and feels there is time to build up its own businesses.

"The opportunity has been reflected in certain managed care valuations long before the revenue is ever going to show up," Zubretsky said. "This is not a cataclysmic event where $300 billion dollars is going to race into the market inside of 12 months. It's going to happen in a phased approach."

Aetna Chief Executive Mark Bertolini has talked about the company's ability to grow its Medicare business by keeping commercial members on Aetna plans when they switch over to Medicare. There are about 1.2 million Medicare-eligible members in the company's commercial membership. He also noted Aetna has more than doubled revenue in its Medicaid business since acquiring it in 2007.

-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AETNA INC
07/29 When Big Insurance Companies Merge, Who Benefits?
07/29DJCigna Misses, Cuts Guidance
07/29 AETNA : Earnings schedule for the week of 8/1/2016
07/28AETNA INC : half-yearly earnings release
07/27 AETNA : Boys Arnold & Co INC Decreased Stake in Aetna INC New by $6.85 Million a..
07/26 AETNA : Georgia officials postpone Aetna-Humana merger hearing
07/25DJCanceled Deals Put M&A Record at Risk -- WSJ
07/25 AETNA : NOAA deploys another smart buoy in the bay
07/24 AETNA : Cigna Futures Foggy In Wake Of Justice Department Decisions To Block Dea..
07/22 AETNA INC /PA/ : Other Events, Financial Statements and Exhibits (form 8-K)
More news
Sector news : Managed Healthcare - NEC
07/29DJCIGNA : Misses, Cuts Guidance -- Update
07/29DJCigna Misses, Cuts Guidance
07/29DJCIGNA : Misses, Cuts Guidance
07/28DJANTHEM : Turns Less Bullish On Exchanges -- WSJ
07/27DJAlere Faces Criminal Probe Over Medicare, Medicaid Billing
More sector news : Managed Healthcare - NEC
News from SeekingAlpha
07/21 U.S. Gov sues to block two health insurance mega-mergers
07/21 WALL STREET BREAKFAST : ECB Holds First Meeting Since Brexit
07/21 Aetna, Humana still talking to DOJ
07/20 United Health Today, Centene And Humana Tomorrow
07/19 U.S. to oppose Cigna/Humana deals
Advertisement
Financials ($)
Sales 2016 63 076 M
EBIT 2016 4 540 M
Net income 2016 2 638 M
Debt 2016 4 521 M
Yield 2016 0,87%
P/E ratio 2016 15,48
P/E ratio 2017 13,88
EV / Sales 2016 0,71x
EV / Sales 2017 0,66x
Capitalization 40 393 M
More Financials
Chart AETNA INC
Duration : Period :
Aetna Inc Technical Analysis Chart | AET | US00817Y1082 | 4-Traders
Full-screen chart
Technical analysis trends AETNA INC
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Average target price 138 $
Spread / Average Target 20%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Mark T. Bertolini Chairman & Chief Executive Officer
Karen S. Lynch President
Margaret M. McCarthy Executive Vice President-Operations & Technology
Shawn M. Guertin CFO, Executive VP & Chief Enterprise Risk Officer
Harold L. Paz Chief Medical Officer & Executive Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
AETNA INC6.56%40 393
UNITEDHEALTH GROUP INC21.73%136 155
ANTHEM INC-5.81%34 565
CIGNA CORPORATION-11.87%33 080
HUMANA INC-3.34%25 716
CENTENE CORP7.20%12 045
More Results