Cigna also reported results for 2013, with lower earnings than expected and a lower forecast for 2014 than analysts expected. It also said its exchange enrollment is half what it anticipated and will result in a loss.
Wellpoint reported fourth quarter and full year earnings which were basically in line with expectations, not including a charge for the disposal of its vision business, and claims its risk pool from the public exchanges is about what it expected.
UnitedHealth Group, the first of the nation's large health plan companies to report earnings, said per share profit rose from $1.20 in the fourth quarter of 2012 to $1.41 this year. Revenue rose to over $31 billion. The company affirmed a forecast of $5.40 to $5.60 in earnings per share for 2014.
UnitedHealth Group has told investors that fees under the reform law and cuts to Medicare Advantage will reduce earnings by around $1 billion. It is likely other large health plan companies will be similarly affected.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].