It's a good time to be a health insurer. Three of the biggest names in the insurance game reported rock-solid profits last week. Aetna said its third-quarter net income jumped 53% over the same period last year, to $497.6 million.
WellPoint, parent of Anthem Blue Cross in California, said its profit rose 1.2% to $739.1 million. Health Net posted a net income of $62.7 million, compared with a loss of $66 million a year earlier. Angela Braly, chief executive of WellPoint, attributed the company's strong performance to "disciplined administrative expense control."
Aetna CEO Ronald Williams was more expansive. He cited "a reduction in utilization of healthcare services after the surge we saw in 2009, combined with appropriate pricing and effective medical quality and cost management."
Well, that sounds fine and dandy until you parse what exactly he's saying. That "reduction in utilization of healthcare services" basically means fewer people went to the doctor. Did we all suddenly become healthier? Not likely.
Jamie Court, president of Consumer Watchdog, a Santa Monica advocacy group, said Americans are skipping doctor visits because they've switched to plans with higher deductibles or their employers have jacked up co-pays.
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