BUSINESSNot all insurers see income go upAetna and PacifiCare lose money while other health insurers post profits.By Cheryl Jackson, amednews staff. June 4, 2001. Citing increased medical costs and shrinking memberships, large publicly traded insurers issued mixed earnings reports for the year's first quarter. The first quarter is usually an easy one for insurers as premium increases have kicked in and new employers come on board, said John Massey, senior health care analyst at Standard & Poor's in New York. But the first quarter certainly was not an easy one for the nation's largest health insurer, Aetna. The insurer reported a $36.6 million loss -- 26 cents per share -- during the first quarter. Analysts had predicted that the insurer would profit 1 cent per share in the first quarter. "They're having a lot of problems because they've got new management in place," Massey said. "And they're finally having to assume the full brunt of the PruCare acquisition." Aetna bought Prudential HealthCare in 1999. PacifiCare Health Systems Inc., undergoing a change in business strategy, reported an 82% drop in income to $13.1 million -- 39 cents a share -- during this year's first quarter from $74.6 million -- $2.04 a share -- in the first quarter of 2000. UnitedHealth Group reported $5.7 billion in revenues for the quarter with earnings per share at 64 cents, up 33% from the 48 cents per share reported first quarter 2000.
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