NU Online News Service, Aug. 1, 5:09 p.m. – Aetna Inc., Hartford, is reporting $108 million in net income for the second quarter on $5.1 billion in revenue, compared with $11 million in net income on $6.5 billion in revenue for the second quarter of 2001.
Net results for the latest quarter include an $18 million charge to cover the cost of employee layoffs.
Aetna ended the quarter providing or administering major medical coverage for 14 million people, down from 18 million people a year earlier. Most of the shrinkage came in commercial health maintenance organization enrollment.
Average health care revenue per commercial member fell 3.7%, to $307.
Aetna also sells group insurance. The group insurance unit increased operating income to $36 million, from $38 million.
Higher benefits costs and lower investment earnings hurt the unit’s performance, but a lower effective tax rate helped, Aetna says.