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American Medical News

 
BUSINESS

News in brief - Aug. 27, 2001


Aetna posts loss - Nev. insurer increases profits - California takes over ailing HMO - Census lowers uninsured estimate - Michigan takes over OmniCare

Aetna posts loss

Aetna Inc., the nation's largest health insurer, Aug. 8 reported an operating loss of $95.9 million, or 67 cents per share, compared with earnings of $36.4 million, 25 cents a share, the prior year.

The Hartford, Conn.-based company reported a $36.6 million loss during the first quarter.

Aetna attributed the loss to rising medical costs.

Nev. insurer increases profits

Sierra Health Services earned a second quarter operating income of $2.8 million, or 10 cents per diluted share, the company announced Aug. 6. The company's second quarter results were a significant improvement over its second quarter 2000 $207 million operating loss.

Las Vegas-based Sierra, which provides health insurance benefits to 1.2 million people, attributed its financial turnaround to an exit from unprofitable markets and premium increases.

California takes over ailing HMO

The California Dept. of Managed Care has placed the 95,000-member UHP Healthcare HMO, based in Inglewood, Calif., in conservatorship.

The state agency, which oversees the managed care industry, took over the health plan from the WattsHealth Foundation because the health plan's net equity had fallen $20 million below state-mandated levels.

Census lowers uninsured estimate

About 39.3 million people, or 14% of the population, did not have health insurance in 1999, the Census Bureau reported Aug. 2 in lowering its estimate of the number of uninsured Americans.

The agency had estimated in September that 42.6 million Americans, or 16% of the population, had no insurance that year. New research shows that number was too high, officials said.

Estimates for 2000 are to be released next month.

Michigan takes over OmniCare

A circuit judge placed OmniCare Health Plan into rehabilitation July 31, allowing state regulators to take over the heath plan. OmniCare, which covers more than 100,000 people, had a negative net worth of $31.9 million in May, compared with a negative net worth of $8.2 million five months earlier, regulators said.

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Copyright 2001 American Medical Association. All rights reserved.
 
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