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Aetna's failing business model

DCblogger's picture

Aetna Expects Restructuring-Related Charges Of $60M To $65M

The industry has been struggling with tepid or declining enrollment in commercial plans, while awaiting the final outcome of the government's overhaul of health-care policy.

The company has an unsustainable business model and they know it. That is why their entire executive board has been dumping stock for years.

Clearly the insurance companies are not viable and only obscene denial of claims enables them to maintain the fiction of solvency. One of the many reasons to move to a single payer system is to insure an orderly transition from a failing private insurance racket to a public system of payment.

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splashy9's picture
Submitted by splashy9 on

To the WSJ, so that article is lost on me. Perhaps quote a bit more?

DCblogger's picture
Submitted by DCblogger on

but bascially they are talking a big charge because they are laying off thousands of workers, they also anticipate that they will lose business because of premium increases. They are squeezing their business to death and they know it.

Kick Baucus to the curb's picture
Submitted by Kick Baucus to ... on

and for "real estate considerations." I didn't get the article either, but I did get a WSJ article from November 19, 2009, a day after Aetna announced they were laying off 1250 by the end of 1st quarter of 2010. That article said Aetna would lay off 3.5% of work force IN ADDITION to 1000 laid off last December. Cigna was cutting 1810 jobs, and Wellpoint had announced in January, '09, that 3.5% of their workforce would be cut.

The article mentions the layoffs in response to all the unemployed not having coverage. (Except, of course for those who can pay their one-third share of COBRA and have the government subsidize the rest.)

Anyway, when the healthcare reform starts taking more money to give to these vampires, do you thing these jobs will come back?

Here is a clue, from the $19 billion investment Obama made in electronic medical records. Granted, athenhealth is not an insurer, but nonetheless, this is where the "savings" are coming from:

Our company,athenahealth Inc.,is a growing at a meteoric rate, and we are aggressively hiring at all levels.Our goal is to bring order to the chaos of U.S healthcare,in which hundreds of thousands of medical practices navigate a Byzantine set of clinical and business processes wrought by decades of managed care.We do this by offering a Software Enabled Service solution that embeds insurance rules and clinical processes directly into our practice management&electronic medical platform.In essence,we are building an operating system for the medical office that eliminates administrative complexity,leaving doctors free to practice medicine.

athenahealth India’s office in Chennai provides the development of technology, process innovation and infrastructure support required to deliver the industry’s unique and leading service for the physicians in the United States. athenahealth India is an integral part of our focus in the continuous improvement of these operations.

http://www.indiajobsit.com/en/Jobseeker/...

Submitted by regulararmyfool on

I worked as temp for various insurance companies in the 1990s. Most of the work I did was keeping track of (actually correcting) their inventory of mortgages.

Insurance companies have loved mortgages for 60 years. Now if you are stupid enough to believe that nice conservative insurance company investors ever even slowed down on buying mortgages in the late unlamented flameout of the the great mortgage bubble, you haven't seen anything yet.

Got investments in annuities? Got an insurance company guaranteed retirement plan? You might think about liquidating at pennies on the dollars. They are not going to make it.

Right now older houses in Detroit cannot be sold for back taxes. I've recently read of two or three cities that canceled sheriff's sales because they didn't believe that the receipts would pay for the expenses.

I can buy a farm in Texas of 40 acres and a modern (whatever the hell that means) home for $12000. Water rights to a river frontage of a quarter of a mile.

They've enriched their rich buddies even more. The middle class is rapidly falling into penury.

All insurance companies should be seized and audited before anything is done on the health insurance front because they are planning to further gorge on the health of the average american.