Aetna Posts Higher Earnings
Aetna's CFO says the company is ready to start implementing CVS-Aetna integration plans.
CVS Corp. hopes to close on Aetna Inc. soon, and Aetna executives are not saying much about the company’s earnings.
Aetna has stopped holding quarterly earnings calls while the CVS acquisition is pending, and the company’s new earnings release for the third quarter focuses mainly on earnings-related numbers, with little narrative discussion.
(Related: CVS-Aetna Will (Probably) Survive New York State Friction: Corporate Lawyers)
Aetna is reporting $1 billion in net income for the quarter on $15 billion in revenue, up from $848 million in net income on $15 billion in revenue for the third quarter of 2017.
The company ended the quarter providing or administering health coverage for 22 million people, or about as many people as it was covering a year earlier.
But Aetna continues pull away from the traditional, commercial, fully insured market.
Just 3.9 million of its major medical plan enrollees have fully insured commercial coverage, down from 4.6 million a year earlier.
Most of that decrease was a result of Aetna cutting individual major medical market participation.
Shawn Guertin, Aetna’s chief financial officer, said in a statement that the company is already well along with preparing to close the transaction with CVS.
The companies have already been planning for integration, and now they will shift to implementation of the integration plans, Guertin said.
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