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...

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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.

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Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

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

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dew ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

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

Sydney FC v West Ham United - Football United New Zealand Tour 2014
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

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

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

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 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, D ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

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

INDIA-CHINA-DIPLOMACY-TRADE
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 Selat ...
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

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in ...
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 ...
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

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 million. ...
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

EurAsia Cup presented by DRB-HICOM - Day One
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 (Kide ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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