NU Online News Service, Feb. 13, 9:52 a.m. – Aetna announced operating earnings both for fourth quarter 2002 and full-year 2002.
The company, based in Hartford, Conn., posted net operating income of $142.6 million in fourth quarter 2002 on revenue of $4.7 billion. Net income for fourth quarter 2002 was $98.2 million.
Full-year operating income for 2002 totaled $450.3 million compared with a full-year 2001 operating loss of $63 million on $6 billion of revenue. For the full year 2002, there was a net loss of $2.52 billion compared with a 2001 net loss of $76.2 million. The 2002 net loss is attributable to a recording of a $2.97 billion noncash impairment of goodwill in first quarter 2001.
The improvement in operating earnings, according to Aetna, was attributable to factors including a reduction in the medical cost ratio and lower administrative costs.
Better medical cost ratio was attributed to reducing membership with high MCRs, price increases and more effective contracting.