Q3 reports: Insurers' business, membership continues to increase
Cigna predicted that its sales would continue increasing as the industry moves away from fee-for-service payments and it lowers its expected losses from individual business, reported Forbes. The Bloomfield, Connecticut-based insurer said its profits grew to $534 million, and revenues rose 9 percent to almost $8.8 billion.
"There are multiple drivers of growth for us," Cigna CEO David Cordani told analysts on a conference call. He added that the company's "personalized service, innovative solutions and quality clinical outcomes" will double its revenue within the next eight years, Forbes noted.
California-based Health Net, meanwhile, increased its membership by about 600,000 individuals from a year before. It saw particular growth in its individual business, which increased from 122,000 to 370,000 people, LifeHealthPro reported.
And since the Western region of the country saw lower healthcare costs per member per month, Health Net CEO Jay Gellert said "there has been no unanticipated increase in utilization in any line of business."
In contrast with most other insurers, Louisville-based Humana said its third quarter was negatively impacted by several big expenses, including costly specialty drugs like Sovaldi, and costs related to the health insurance exchanges. Its benefits costs, for example, rose 20 percent to $9.67 billion, which increased overall operating expenses 20 percent to $11.65 billion, the Wall Street Journal reported.
Humana admitted that these costs were offset by a 11 percent boost in membership from last year, including a 17 percent growth in its Medicare Advantage plans.
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