Latest Aetna Inc News and Updates
How Does Aetna Compare to Its Peers in Medical Care Ratio?
The medical care ratio of health insurance companies is calculated as the ratio of the total money spent in health care claims to premiums earned.
What Are Sage Therapeutics’ Receptor-Based Products?
Sage Therapeutics (SAGE) is focused on the development of the products for the treatment of life-threatening central nervous system (or CNS) disorders.
Analysts’ Recommendations for Anthem in 2017
Based on the company’s performance in 1Q17, Anthem (ANTM) has increased its 2017 revenue guidance by around $1.5 billion.
What’s UnitedHealth Group’s outlook for 2015?
It’s projected that UnitedHealth Group’s revenue and earnings growth in 2015 will be driven by the strong performance of the Optum segments.
Enrollments decreased in UnitedHealth’s international business
In the US, the private health insurance industry has been expanding its footprint in international markets. International markets are less penetrated and competitive.
UnitedHealth Group’s Optum segment: Earnings rose in 2014
UnitedHealth Group (UNH) operates Optum. It provides health services like health technology, health and well-being, and pharmacy services.
How Does UNH’s Valuation Look in October?
UnitedHealth Group is a leading managed healthcare firm in the United States.
Eminence Capital Reduces Position in Humana
During the fourth quarter of 2014, Eminence Capital lowered its stake in Humana (HUM). The company accounted for 1.33% of the fund’s 4Q14 portfolio.
Humana’s core business: The Medicare Advantage program
Humana’s total enrollment is mainly enrollments in the MA program, a substitute for the original Medicare program, via private insurance companies.
Why UnitedHealth Group Plans to Reduce Its Public Exchange Exposure
Given the high-risk profile of individual exchange enrollments, UnitedHealth Group has decided to offer plans only on a few public exchanges in 2017.
Is the Cigna–Anthem Merger a Setup?
The Cigna–Anthem merger deal will be subject to all sorts of headlines that will affect the spread. You can make a decent return trading around the position by keeping your head .
The Risk-to-Reward Ratio of the Cigna–Anthem Merger
If the Cigna–Anthem merger closes, you end up making about $35 a share. If the deal breaks, then you would have to cover at $52 a share.
UnitedHealth Group Goes Ex-Dividend Today
UnitedHealth Group (UNH) has announced that its board of directors has authorized a cash dividend of $0.90 per share.
UNH’s Stock Price Performance in June
On June 28, UnitedHealth Group (UNH) ended the trading day at $244.90, ~4.6% lower than its 52-week low of $183.86 reached on July 18, 2017.
UNH Stock Up 4.1% on Solid Q3 2018 Results, View Up
UnitedHealth Group (UNH) released its Q3 2018 earnings today. UNH reported sales of $56.6 billion, up ~12.4% on a year-over-year basis.
What Is the Risk-to-Reward Ratio of the Humana–Aetna Deal?
Scenario analysis In the risk-arbitrage world, a 12.2% expected return means a deal that has a lot of risk. Arbitrageurs sometimes refer to risk as “hair.” This deal is guaranteed a second request, and the regulators may simply be unable to get comfortable with the transaction, no matter what the companies offer in the way […]
Jefferies Raised Its Target Price on UNH Stock: What’s the Outlook?
UnitedHealth Group (UNH) is one of the largest Fortune 500 companies.
Larry Robbins’ Glenview Capital opens a new position in PHH
Glenview Capital Management added a 0.49% new position in PHH Corporation.
How Is UNH’s Optum Business Positioned in the Industry?
UnitedHealth Group is, by revenue, the largest healthcare company in the world.
UnitedHealth Group Reports Q2 2018 Earnings, Stock Down 1.9%
Today, UnitedHealth Group (UNH) reported its earnings results for the second quarter of fiscal 2018. The company reported sales of $56.1 billion, up ~12% on a (year-over-year) basis.
Negative Sentiment Will Impact Health Insurance Companies
The healthcare bill’s failure had a negative impact on investor sentiment for health insurance carriers.
UnitedHealth Group Posted 4Q15 Earnings: What You Should Know
UnitedHealth Group (UNH) released its 4Q15 and full year 2015 earnings on January 19, 2015. The company registered diluted EPS attributable to common shareholders of $1.26 in 4Q15 and $6 for 2015.
UnitedHealth Group Stock at 52-Week High, Up 22% Year-to-Date
UnitedHealth Group (UNH) stock registered its 52-week high of $270.17 last week on August 30.
Analyst Ratings for UnitedHealth before Q3 2018 Earnings
Of the 24 analysts covering UNH stock, ten have recommended a “strong buy,” and 13 have recommended a “buy.”
Understanding the Phenomenal Growth of ASEAN Nations
The growth of the ASEAN member nations has been extraordinary, to say the least. The GDP for the region expanded at a whopping 313% between 2001 and 2013.
UnitedHealth Group’s Recent Stock Performance
On March 14, 2018, UnitedHealth Group (UNH) ended trading at $225.38 per share.
Wall Street Expects 9% Upside Potential for UnitedHealth Stock
As of September 24, ten of the 24 analysts covering UNH stock have given it a “strong buy” recommendation.
Analysts Raise Target Prices on UNH Stock in September
Of the 23 analysts covering UNH stock, all of them have “buy” or “strong buy” recommendations for UnitedHealth Group.
CVS Health versus Walgreens: Comparing Pharmacy Giants
Around 70% of the US population lives within three miles of a CVS store, while more than 75% of the population lives within five miles of a Walgreens store.
UnitedHealth Group Posted Strong 1Q18 Performance
On April 17, UnitedHealth Group (UNH) reported its 1Q18 earnings results. UNH stock rose ~3.6% from its April 16 closing price.
Cigna Expects Acquisition of Express Scripts by End of 2018
On March 7, 2018, Cigna (CI) announced that it has entered into a definitive agreement to acquire Express Scripts (ESRX) for $67 billion.
Insys Has Legal Issues Galore
In December 2016, the U.S. Attorney’s office for the District of Massachusetts issued an indictment against six former Insys (INSY) employees.
A Look at the Financial Details of the CVS-Aetna Deal
CVS is paying more than 11 times the trailing 12-month EBITDA for Aetna.
Deal of the Year: CVS to Buy Aetna for $69 Billion
CVS Health (CVS), America’s largest pharmacy chain, announced a $69 billion deal to purchase Aetna (AET), the country’s third-largest insurance company, on December 3, 2017.
CVS Health May Vertically Integrate Further by Acquiring Aetna
With trailing 12-month sales of $181 billion, CVS Health is a pharmacy colossus. However, its focus seems to be on becoming more than just a retail pharmacy chain.
How Medtronic Is Accelerating Its Economic Value Growth Strategy
Medtronic’s (MDT) Hospital Solutions segment registered double-digit growth in fiscal 1Q18.
WellCare Health Plans Expected to Report Solid Rise in EPS in 2017
WellCare Health Plans has updated its earnings per share guidance from the previously estimated range of $6.00–$6.25 to the new range of $6.55–$6.80.
WellCare Health Plans Expects Robust Revenue Performance in 2017
In 1Q17, WellCare Health Plans (WCG) reported revenues of ~$3.9 billion, which totals year-over-year growth of around 11.7%.
Analysts’ Recommendations for WellCare Health Plans in May 2017
On April 28, 2017, WellCare Health Plans (WCG) completed the acquisition of Universal American Corp. This deal added 119,000 Medicare Advantage members from several major markets
Why Centene’s Health Benefit Ratio Improved in 1Q17
Centene (CNC) has projected its health benefit ratio (or HBR) for the full year 2017 to fall in the range of 87.0% to 87.5%.
UnitedHealth Group Witnessed Robust Customer Growth in 1Q17
In 1Q17, UnitedHealth Group’s (UNH) UnitedHealthcare business witnessed a 2.5 million year-over-year increase in customers.
OptumRx Continues to Boost UnitedHealth’s Pharmacy Care Services
In its bid to control healthcare costs, UnitedHealth Group’s (UNH) OptumRx segment has been actively deploying data analytics across its Optum platform.
Optum360: Will It Become UnitedHealth’s Key Growth Driver?
Optum360, UnitedHealth Group’s (UNH) hospital revenue cycle management solution, is expected to reach $60.0 billion in billings for clients and partner organizations.
Sector Composition of the Alger Spectra Fund in YTD 2016
Compared to the Russell 3000 Growth Index, SPECX is markedly overweight in the information technology and healthcare sectors.
Behind OptumHealth’s and OptumInsight’s Strong Revenue Growth in 1Q16
UnitedHealth Group’s healthcare delivery business, OptumHealth, managed to earn $4 billion revenues in 1Q16, which represents a YoY growth of about 22%.
What You’ll Want to Know about Anthem’s Guidance for 2016
In its 1Q16 conference call, Anthem updated its 2016 revenue guidance to $81 billion–$82 billion—higher than the previous projection by about $1 billion.
What Subsidy Eligible Membership Could Mean for Centene’s Public Exchange Revenues
Centene managed to increase its public exchange membership from 75,000 members in 2015 to 146,000 members in 2015.
Humana Acquisition Could Be Aetna’s Key Long-Term Growth Driver
Aetna’s Humana acquisition is mainly aimed at increasing the combined companies’ exposure to the high-growth Medicare business. The deal is currently being scrutinized by antitrust regulators.
IHF’s Large-Cap Stocks Gave Positive Returns
The large-cap stocks of the iShares US Healthcare Providers ETF (IHF) rose marginally with a return of 0.35%. They outperformed IHF and SPY.
What Are UnitedHealth Group’s Growth Opportunities?
To strengthen their presence in international markets, health insurance companies have been involved in mergers and acquisitions with local insurance companies in these markets.
Why UnitedHealth Group’s Net Profit Margins Fell
In 3Q15, despite a rise of total revenues by 27% year-over-year, which includes 10% organic growth, UnitedHealth Group reported a decline of about 1% in net profit margins.
A Structural Analysis of PanAgora and Renaissance Technologies
PanAgora and Renaissance Technologies are both investment management firms that use a quantitative-based investment approach.
Is UnitedHealth Group a Better Partner for Cigna?
Based on market capitalization, UnitedHealth Group appears to be a stronger partner for Cigna.
Synergies in Centene’s Acquisition of Health Net
Centene projects that Health Net’s acquisition will help Centene realize pre-tax synergies worth $150 million by the end of the second year after the closure of the deal.
Analyzing the Market’s Response to the Centene–Health Net Deal
The Centene–Health Net deal is expected to be completed by early 2016, pending approval by the shareholders of both companies.
Centene–Health Net Entity Could Be Medicaid Leader
Centene aims to position itself as a leader in the fast-growing Medicaid market. Health Net’s acquisition will add ~1.7 million Medicaid members to the company’s portfolio.
Centene Announces Its Acquisition of Health Net
On July 2, Centene announced the acquisition of Health Net for a combination of cash and shares amounting to $6.8 billion. This includes the assumption of Health Net’s $500 million debt.
Key Takeaways from UnitedHealth Group 1Q15 Earnings
UnitedHealth Group (UNH) posted its 1Q15 earnings on April 16, 2015. Following the release, UnitedHealth Group’s share price increased by 3.6%.
Cigna Controls Risk-Based Capital Requirements
The Cigna business model is more concentrated toward commercial enrollments but is diversified across various delivery platforms.
Cigna: Group Disability And Life Insurance Business
Disability accounts for about 49% of the company’s Group Disability and Life Business revenues. It covers over 7.5 million people.
What’s Centene’s Business Strategy?
Centene’s business strategy focuses on improving the quality of its services. It provides services to the uninsured and underinsured population in 22 states in the US.
Cigna: Global Supplemental Benefits Earn 9% of Revenues
Cigna’s (CI) Global Supplemental Benefits segment accounts for about 9% of the company’s total revenues.
Cigna: International Expansion Key to Growth Strategy
International expansion is a hallmark of Cigna’s business. Cigna has inked deals in Turkey, Belgium, Brazil, Japan, Taiwan, Thailand, et cetera.
Cigna Diversifies Via Mergers and Acquisitions
Among Cigna’s major strategic mergers and acquisitions was HealthSpring, acquired in 2012 for a consideration of $3.8 billion.
How Has Aetna Implemented the Premium Stabilization Program?
Aetna’s recoverables and payables from the premium stabilization program amounted to $338 and $230 million, respectively.
Cigna’s Commercial Business Mostly Self-Insured
In the commercial business, self-insured coverage means the employer is responsible for the probable claim obligations of the employees.
Cigna’s Customer Segments a Healthy Mix
Customer segments The players in the private health insurance industry (IYH) aim for a favorable enrollment mix to reduce taxes and other liabilities while at the same time generating sustainable profits. Accordingly, managed care organizations such as Humana (HUM), Aetna (AET), Anthem, Cigna (CI), and WellCare Health Plans (WCG) are increasingly focusing on government-sponsored and international enrollments to balance […]
Cigna: Medicare and Medicaid Beneficiaries Top Earners
Most of Cigna’s revenue comes from insurance for employer-sponsored as well as Medicare and Medicaid beneficiaries.
What key risks does UnitedHealth Group face?
UnitedHealth Group (UNH) is a health insurance provider. It faces a unique combination of business risks, including business mix and competition risks.
OptumRx manages UNH’s pharmacy benefit management business
UnitedHealth Group’s OptumRx segment provides PBM services to more than 30 million Americans. It manages about $40 billion in pharmaceutical spending annually.
Why Aetna’s Medical Care Ratio Declined in 4Q14
The medical care ratio measures a health insurance company’s financial health. Aetna’s (AET) medical care ratio declined from 83.9% in 4Q13 to 83% in 4Q14.
Star Ratings Increased Aetna’s Government-Sponsored Business in 4Q14
Aetna (AET) earns about 38% of its revenue by providing health insurance services to government-sponsored enrollees.
UnitedHealth Group’s OptumHealth – what does it provide?
UnitedHealth Group’s OptumHealth segment is responsible for implementing measures to improve the quality of service and patient satisfaction.
UnitedHealth’s operating expenses compared to its peers
In the private health insurance industry, the operating expenses mainly involve the costs for providing hospital benefits and emergency services.
How Is Aetna’s Membership Distributed Across Its Key Markets?
Aetna’s membership is mainly concentrated in the western US, followed by the Southeast, the Northeast, the Mid-US, and finally consolidated international enrollments.
What’s UnitedHealth Group’s strategy for international expansion?
The private health insurance industry in the US has been expanding its footprint in international markets. International markets are less penetrated and competitive.
What are UnitedHealth Group’s key business segments?
Out of UnitedHealth Group’s (UNH) four business segments, UnitedHealthcare accounted for 71.3% of the company’s revenue.
Why Aetna Is Shifting to a Value-Based Payment Model
Aetna projects that its value-based spending as a part of the total spending will rise from 25% in 2014 to 50% in 2018.
How Does Aetna Make Payments to Its Provider Network?
Managed care organizations (XLV) enter into a contract with a set of health care providers, or a provider network, to provide care for members at reduced costs.
Aetna’s Strategy for Its Specialty Insurance Business
Aside from the standard healthcare policies, players in the private health insurance industry also offer specialty insurance.
How Does Aetna Manage Its Commercial Business?
Aetna (AET) derives 58% of its operating revenues from its commercial business, which involves offerings such as fully insured health plans and self-insured health plans.
What Are Aetna’s Key Business Segments?
Out of Aetna’s (AET) three business segments, Health Care accounted for 95% of the company’s revenue.
A Key Overview of Aetna, One of the Largest Insurance Providers
With a market capitalization of $35.1 billion, Aetna (AET) is one of the largest insurance providers in the US.
UnitedHealth’s diversification strategy improved its performance
Health insurance companies (XLV) use diversification strategies across markets, products, and services to maintain their operating margins.
UnitedHealth Group’s OptumInsight – improving medical care
In 2014, OptumInsight released a population health analytics tool—OptumOne. It enables hospitals to improve the quality of care.
UnitedHealth Group provides services to Medicare beneficiaries
Medicare Part D is a federal government program. It subsidizes prescription drug expenses for Medicare beneficiaries.
What are UnitedHealth Group’s consumer engagement products?
The private health insurance industry offers a diverse range of products. The products combine health plans with financial accounts to cater to different consumers’ needs.
Key drivers for Humana’s fully insured employer-sponsored plans
Humana’s (HUM) fully insured enrollments remained almost stable at 1.2 million in the fourth quarter of 2013 and the fourth quarter of 2014.
UnitedHealth Group’s employer-sponsored and individual insurance
Employer-sponsored coverage, a major form of insurance, increasingly adopted self-insured plans. They’re more cost-effective and flexible than fully-insured plans.
UnitedHealth Group: The history of a health insurance giant
With a market capitalization of $107.1 billion, UnitedHealth Group is the largest insurance provider in the US. It registered revenue worth $130.5 billion in 2014.
Humana employs and contracts more primary-care physicians in 4Q14
Humana’s employed and contracted primary-care physicians rose by 29.2% from 11,300 in 2013 to 14,600 in 2014.
Humana’s income rises 21% year-over-year in 4th-quarter 2014
Humana reported its fourth quarter 2014 financial results. The company reported revenue of $12.3 billion—an increase of 21% year-over-year.
Humana’s financial risk managed by capital requirements
There are minimum amounts of capital that a health insurance company should possess in order to protect its customers and investors from financial risk.
How Humana sells health plans on public and private exchanges
Humana is competing based on price and geography to capture a higher market share of the customers buying plans on exchanges.
Most Humana stakeholders are mutual funds or advisers
Investment advisers or mutual funds are the main stakeholders in Humana, accounting for about 81.7% of its total ownership picture.
Humana rumored to be making a move with pharmacy business
Humana’s pharmacy business covers about 9 million people, and 6 million of those are Medicare beneficiaries.
Humana’s integrated care delivery strategy
Humana’s core strategy is an integrated care delivery model. Its Healthcare Services segment provides the required ancillary services.
Humana’s Retail Insurance business segment is biggest earner
Humana’s retail insurance business segment contributes 66.5% of overall company revenues. Employer-sponsored programs follow with 27.6%.
Humana: Unraveling the history of a health insurance giant
Humana (HUM) is the third-largest health insurance provider in the US, with over 13 million customers. Humana is also 73rd in Fortune 500 rankings.
Understanding health insurance companies’ major operating expenses
The operating expenses of the private health insurance industry depend on the design of health plans and on the life history, age, and health of enrollees.