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Life Health > Health Insurance > Health Insurance

Pete Stark Blasts Health Insurer Profits

By Allison Bell

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Earnings are up at Aetna Inc. and WellPoint Inc., and that has outraged a key congressional leader.

Aetna, Hartford (NYSE:AET), is reporting $491 million in net income for the second quarter on $8.5 billion in revenue, compared with $347 million in net income on $8.7 billion in revenue for the second quarter of 2009.

Aetna earned about $27 in net profits per insurance plan enrollee during the quarter, or about $9 per month..

WellPoint, Indianapolis (NYSE:WLP), is reporting $722 million in net income for the latest quarter on $30 billion in revenue, compared with $693 million in net income on $15 billion in revenue for the second quarter of 2009.

WellPoint earned about $22 per medical insurance enrollee during the quarter..

UnitedHealth Group Inc., Minnetonka, Minn., also has reported higher second-quarter earnings.

Rep. Pete Stark, chairman of the House Ways and Means Committee health subcommittee, accused WellPoint and Aetna of earning “windfalls.”

The companies should return the windfalls to enrollees in the form of lower premiums, Stark says in a statement.

“With business booming, there is no excuse for any premium hikes or benefit cuts next year by Wellpoint or Aetna in their private sector or Medicare Advantage plans,” Stark says.

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