Aetna Inc, one of the largest insurance providers in the world, has exceeded forecasts made by Wall Street, while missing its projected income for 2016. This was revealed in Monday morning's earnings reports.
The Aetna providers of insurance posted adjusted earnings of $1.37 per share in the company's latest quarter. It has beaten projections by 16 percent with its revenue topping WS forecasts.
The current market position of Aetna Inc was helped by the increase in its membership and profitable margins under its Medicare business. It is expecting 2016 earnings of $7.75 per share, a tad below its estimates of $8.05 per share.
"I think Street consensus was built from a number of other aspects. Our stock is up today; our number was at least $7.75 a share, which is 10 percent of the baseline for '15," Mark Bertolini, Aetna CEO said Monday on CNBC's "Closing Bell."
"We think our guidance is appropriately prudent at this time given all the changes that will happen in '16 around the Affordable Care Act and the changes in taxes and fees in the Affordable Care Act," Bertolini added.
The CEO of Aetna providers of insurance also mentioned that he has serious concerns regarding the sustainability of the marketplaces of Obamacare. He stated that Aetna Inc is worried about the 'overall stability of the risk pool.'
Other insurers including Aetna providers claim that they are losing money in the Obamacare marketplaces. These markets are also regarded as exchanges, mainly because of an influx of sicker and more costly enrollees aptly called the 'risk pool.'
The country's largest health insurer, United HealthCare, stated in November that its losses on these Obamacare marketplaces might force the company to stay out of the program altogether in 2017.
Not being quite there yet, Bertolini said that they feel it important to insure all Americans. He apparently believes that they need to stick it out until the time comes when it really wouldn't work.
