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as crappy as I think this is, the headline is misleading. I thought I was going to read that Aetna was actually dropping 600,000 people because they were too big a liability. Crappy, but not as crappy as I expected.
In a sense, both are accurate. Aetna has made the business decision that to increase profits, it needs to increase prices (logical), and the increased prices will result in some of their customers (Aetna is estimating 600,000) to seek health care insurance elsewhere (also logical) but that Aetna will see increased profits despite losing these 600,000 customers.
It's strictly a business decision; i.e., it is in the company's best fiscal interests to lose 600,000 customers through price increases that will result in an increase in their profit margin. To my mind, it's just one more indication of how valuable a solid public option would be, if for no other reason than to provide additional competition.
The articles about Aetna's business decision are based on a transcript of an Aetna earnings conference call in October, and can be found here.
Ahhh no..
Aetna is being required to increase liquidity due to increased regulations among the industry. With these increases and federal mandates which is due to come into play, increasing costs are the only possible way to completed the needed liquidity..
Ah, capitalism at it's finest. We don't need the government involved in health care because profit driven insurance companies have it covered.
No, the commie way is to have the government take over Aetna and other insurers.
Forget the profit *they* want to earn. Let the government decide the profit they earn.
Notice, that same article said:
Quote:
Aetna completely overhauled its business between 2000 and 2003, going from 21 million members in 1999 down to 13 million in 2003, but boosting its profit margin from about 4% to higher than 7%."
Btw, after we are done with them, lets talk about your generous salary and benefits.
OR....
we can have the government step OUT of the way, let more competition enter the market and the insurance rates will naturally come down.
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