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Wednesday, Oct 29 2014

Full Issue

WellPoint, Aetna Raise 2014 Forecasts

There is a downside for Aetna. Even as the insurer posted higher membership and revenue, its medical costs also increased. Meanwhile, HCA's third-quarter earnings rose as the hospital operator continued to experience a rebound in admissions and other positives generated by the health law.

WellPoint Inc. on Wednesday morning became the latest health insurer to raise its outlook after posting higher-than-expected quarterly earnings. The company, which touted its growing membership base, said it now expects to post earnings of $8.75 to $8.85 a share this year, up from its prior call of more than $8.60 a share. (Calia, 10/28)

The insurer has posted higher membership and revenue of late. But medical costs also have increased, although it has categorized that trend as moderate. New treatments for hepatitis C have been among the biggest pressures on results, along with the company鈥檚 individual book of business. (Wilde Mathews and Calia, 10/28)

Aetna became the latest major health insurer to thump third-quarter expectations and raise its 2014 forecast, but the company鈥檚 shares slipped Tuesday after it also said expenses climbed more than expected for part of its enrollment. The nation鈥檚 third-largest health insurer said that medical costs for some of its small-business coverage came in higher than projected, and benefit and network changes that it had made to help control those expenses hadn鈥檛 worked as expected. (10/28)

HCA Holdings Inc. said its third-quarter earnings rose 42% as the hospital operator continued to benefit from a rebound in admissions and benefits from the U.S. health-care policy overhaul. The company鈥檚 board authorized the repurchase of as much as $1 billion of HCA鈥檚 shares. (Stynes, 10/28)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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