Health insurers’ profitability in the second quarter of 2017 probably would be old news by now, except that it was one of the topics of discussion at the recent Senate HELP Committee hearings on stabilizing the individual insurance market. In defense of the insurers (and as the Anthem executive at the hearings pointed out), many of the insurers made money in the Medicare, Medicaid and group health insurance markets and lost money in the individual market, which is why some of them exited the individual market in many states. Senator Elizabeth Warren (D-MA) suggested that perhaps Anthem (and other health insurers) should stay in the individual market where people need insurance, since they are making money from the government in the Medicare and Medicaid markets and from employers and employees in the group health plan market.
There are two sides to every argument, but the net income numbers for Q2 2017 are pretty impressive.
Insurance Company Profits, 2017 Q2
|Insurance Co||Net Income Q2 2017||Net Income Q2 2016||Revenues Q2 2017||Revenue Q2 2016||Operating Exp Q2 2017||Operating Exp Q2 2016|
|Aetna||$1.2 bil||$791 mil||$15.5 bil||$16 bil||$2.6 bil||$2.9 bil|
|Anthem||$855.3 mil||$780.6 mil||$22.2 bili||$21.3 bil||$21.2 bil||$20 bil|
|Cigna||$813 mil||$510 mil||$10.3 bil||$10 bil||$9.2 bil||$9.15 bil|
|Humana||$650 mil||$311 mil||$13.5 bil||$14 bil||$12.4 bil||$13.3 bil|
|UnitedHealth Group||$2.3 bil||$1.8 bil||$50.1 bil||7/7% incr over 2016||$46.3 bil||$43.3 bil|
For additional information on Health insurers’ profitability in Q2 2017, see the following links:
- Big 5 Health Insurers Report $3.7B in Q2 Profit, Beckers Hospital Review, Aug 5, 2017. https://www.beckershospitalreview.com/finance/big-5-health-insurers-report-3-7b-in-q2-profit.html
- Aetna, Investor Information, https://www.aetna.com/about-us/investor-information.html
- Anthem , Investors News webpage: http://ir.antheminc.com/phoenix.zhtml?c=130104&p=irol-calendar
- Cigna, Investor Relations webpage, https://www.cigna.com/cignadotcom/aboutcigna/investors/events/index.page
- Humana, Investor Relations webpage, http://phx.corporate-ir.net/phoenix.zhtml?c=92913&p=irol-IRHome
- United Health Group, 2017 Financial Reports and SEC Filings http://www.unitedhealthgroup.com/investors/financialreports.aspx