Aetna Shops PBM Services, Cuts Earnings Outlook


Published On: July 28th, 2009

When a company moves up its earnings announcement by two days without a clear explanation, it’s worth a closer look. Here’s some of what was in the company’s Q2 results reported this morning.

Aetna, the third-largest insurer in the U.S, cut its earnings forecast for the second time in two months. It said it was hit with higher commercial medical costs and unexpectedly low Medicare revenue in the latest three months. Some analysts say it may have to cut its outlook further, according to Dow Jones Newswires

The company didn’t comment on the WSJ report that it is shopping its pharmacy-benefits management unit. It isn’t clear whether the accelerated earnings announcement was tied to the auction process, notes the WSJ.

For some time, health insurers thought the best way to manage members’ medical and drug benefits was to run their own pharmacy-benefits management unit. But when WellPoint sold its PBM business to Express Scripts in April, the speculation was that other major insurers might follow suit. The new thinking is that stand-alone PBMs might negotiate lower drug prices for patients because of greater volume discounts.


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Aetna Shops PBM Services, Cuts Earnings Outlook



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