Aetna Inc. and Humana
Inc. in recent weeks posted second-quarter 2019 earnings that were aided by
substantial growth in their Medicare Advantage segments, while Cigna Corp.
expressed confidence in its ability to grow that business in 2020.
CVS Health Corp. on Aug.
7 reported a 55% year-over-year increase in consolidated adjusted operating
income to $4 billion, which it mainly attributed to the November 2018 addition
of Aetna Inc. and growth of the pharmacy benefit manager.
Aetna this year embarked
on its largest MA service area expansion ever, and enrollment in its MA
products increased by roughly 33,000 lives from the first quarter of 2019 to
2.26 million members as of June 30. That's an increase of 30% from 1.73 million
MA lives it reported in the year-ago quarter.
Meanwhile, Humana Inc. on
July 31 said enrollment in its individual MA plans grew 15.1% from the year-ago
quarter to 3.48 million lives as of June 30, 2019, and projected full-year
enrollment growth of 16% for the highest individual MA membership increase in a
decade.
Humana also updated its
projection for an anticipated enrollment decline in its Prescription Drug Plan
segment, and said it now expects to lose 700,000 members in 2019 compared to a
previous estimate of 700,000 to 750,000 enrollees.
Cigna Corp. on Aug. 1
raised its full-year EPS guidance by 25 cents to 35 cents to a range of $16.60
to $16.90 per share, representing growth of 17% to 19% over 2018. Cigna Corp.
President and CEO David Cordani during an Aug. 1 conference call highlighted
the "tremendous growth opportunity" in MA for 2020 and said the
company expects to achieve between 10% and 15% average annual growth in its MA
membership.
No comments:
Post a Comment