10 Updates

With An Obamacare Boost, Cigna Latest To Raise Profit Outlook

May 1 2014, 9:18am CDT | by

Cigna (CI) became the latest in a parade of health insurance companies to report they are going to make even more money than they thought they would in 2014 thanks to new business strategies and a...

Filed under: news

 
 
 

12 weeks ago

With An Obamacare Boost, Cigna Latest To Raise Profit Outlook

May 1 2014, 9:18am CDT | by

Cigna (CI) became the latest in a parade of health insurance companies to report they are going to make even more money than they thought they would in 2014 thanks to new business strategies and a surge of younger customers signing up for coverage under the Affordable Care Act.

Cigna this morning said it now expects income from operations in the range of $1.93 billion and $2 billion or between $7.05 and $7.35 a share for 2014. That’s an increase of 20 cents per share from previous guidance, the company said during its first quarter earnings report.

Cigna chief executive officer David Cordani said the company is performing well across all of its markets and is also moving to new strategies that encourage accountable care, paying “health coaches” and nurse care managers to help traditional medical care providers treat patients more effectively, keeping them well and in less expensive care setting like hospitals. Employers and the health law encourage such “population health” approaches to providing medical care, moving away from traditional fee-for-service medicine to so-called “value-based care.”

And though Cigna executives maintain the insurer will lose money this year on individuals who signed up for coverage via public exchanges under the health law, executives said a surge of younger people signing up in the waning weeks of open enrollment is good news.

Cordani said during a 70-minute conference call with Wall Street analysts sand investors that the null  In addition, the early buyer group in the six-month open enrollment period that began last October also had a higher usage of medical care services in the first two months of this year.

But the second wave of people who signed up for Cigna plans via the public exchanges was younger, Cordani said. null

By the end of 2014, Cigna expects 290,000 customers buying individual policies and 40 percent of them are purchasing “ACA policies,” or policies subsidized under the Affordable Care Act.

In the company’s first quarter, Cigna reported net income from operations of $501 million, or $1.83 per share compared to $387 million, or $497 million, or $1.72 per share in the first quarter of 2013. Revenues increased 4 percent to $8.5 billion.

Cigna is the latest insurance company telling a concerned Wall Street that they going to be able to manage the first year of risk from newly insured customers buying subsidized private health plans via government-run exchanges. Under the law, millions of Americans can get subsidies to purchase an array of health plan choices.

The improved forecast is the latest in a parade of rosy financial projections from health insurance companies benefitting from the health law. Other insurers doing well include Aetna (AET) UnitedHealth Group (UNH), Humana (HUM) and Wellpoint (WLP), a major operator of Blue Cross and Blue Shield plans under the Anthem brand that also raised its profit outlook this week.

 Wondering how Obamacare will affect your health care? The Forbes eBook Inside Obamacare: The Fix For America’s Ailing Health Care System answers that question and more. Available now  at Amazon and Apple.

/>

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbers. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejec ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last mon ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohamed ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involvin ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 201 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kid ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Bangladeshi plane catches fire at Nepal airport, passengers safe
Kathmandu, July 28 (IANS) A Bangladeshi aircraft caught fire while landing at Kathmandu's Tribhuvan International Airport (TIA) Monday afternoon, officials said.
 
 
Shift work can worsen asthma, pneumonia
London, July 28 (IANS) A research has found that drugs widely used to treat lung diseases like asthma or pneumonia work better with the body clock.
 
 
Decoded: What triggers sexual arousal in you
New York, July 28 (IANS) Know why just looking at an attractive face stimulates sexual arousal? Well, it takes two to tango!
 
 
Turn your selfie into emoji with this app
New York, July 28 (IANS) Tired of seeing the same yellow-faced smileys? In an age of selfies, how can emojis be far behind?
 
 
 

Latest from the Network

Scoreboard: India vs England, day 2, third Test
Southampton, July 29 (IANS) The following is the scoreboard after the second day's play of the third cricket Test between India and England at the Rose Bowl here Monday: England (first innings, overnight 247/2)...
Read more on Sport Balla
 
UN call neglects Israel's security needs: Netanyahu
Jerusalem, July 29 (IANS) Israeli Prime Minister Benjamin Netanyahu Monday criticised the UN Security Council's call for ceasefire in the Gaza Strip, saying it strengthens Hamas and neglects Israel's security needs....
Read more on Politics Balla
 
Three dead, 16 injured in Nigerian suicide attacks
Abuja, July 29 (IANS) At least three people were killed and 16 others injured in two suicide bombings Monday in northern Nigeria's Kano state, officials said. In the first incident, a female suicide bomber attacked a...
Read more on Politics Balla
 
31 killed in Iraq violence
Baghdad, July 28 (IANS) At least 31 people were killed and 20 others wounded in the latest violent attacks and conflicts in Iraq, police source said Monday. Police patrols Monday found 14 unidentified bodies - 11 men...
Read more on Politics Balla
 
Narang clinches men's 50m rifle prone silver
Glasgow, July 28 (IANS) Indian shooters continued to bring home more medals as Gagan Narang won the country's third medal Monday clinching the men's 50-metre rifle prone silver in the finals at the Commonwealth Games...
Read more on Sport Balla
 
Renew humanitarian truce in Gaza: UN chief
United Nations, July 28 (IANS) UN Secretary General Ban Ki-moon Monday urged Israel and te Islamist Hamas movement to renew a humanitarian ceasefire in Gaza and called on those responsible to "step back from provoking...
Read more on Politics Balla
 
Indian paddlers lose men's team bronze playoff
Glasgow, July 28 (IANS) India's men paddlers suffered a disappointing finish in the team bronze medal playoff, losing to Nigeria 1-3 at the Commonwealth Games here Monday. India, who had won the bronze in the same...
Read more on Sport Balla
 
Ousted Thai PM faces power-abuse allegation
Bangkok, July 28 (IANS) Thailand's Election Commission (EC) is accusing former prime minister Yingluck Shinawatra of abusing power by using public funds to campaign for elections, local media reported Monday. EC...
Read more on Politics Balla
 
CWG: Ghosal, Anaka lose in squash
Glasgow, July 28 (IANS) Indian squash players Saurav Ghosal and Anaka Alankamony bit the dust Monday bringing to an end their individual campaigns in squash singles at the Commonwealth Games here. While Ghosal lost...
Read more on Sport Balla
 
England 452/5 at tea
Southampton, July 28 (IANS) England were batting at 452/5 at tea on Day 2 of the third cricket Test against India at the Rose Bowl here Monday. Ian Bell and wicketkeeper-batsman Jos Buttler were batting on 133 and 13...
Read more on Sport Balla