The Hartford, Conn.-based insurer recorded revenue of $15.5 billion in the second quarter of 2017, down 2.7% from the year-ago period because of lower premiums and membership in its ACA individual and small group segments.
Aetna’s membership totaled 22.1 million at the end of the quarter compared to 23 million at the same time last year. The insurer sharply reduced its exchange presence in 2017 when it pulled out of 11 states, citing massive financial losses.
Aetna’s net income was $1.2 billion in the three months ending June 30 compared to $791 million at the same time last year. Aetna said the increase was due to lower transaction and integration-related costs since it abandoned its proposed $37 billion merger with Humana.
It lowered its medical cost ratio, or the amount of premiums spent on medical care, to 80% from 82.4% in the year-ago period.
“Our strong second quarter results speak to our continued focus on disciplined pricing and execution of our targeted growth strategy,” CEO Mark Bertolini said in a statement.
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Shelby Livingston is an insurance reporter. Before joining Modern Healthcare in 2016, she covered employee benefits at Business Insurance magazine. She has a master’s degree in journalism from Northwestern University’s Medill School of Journalism and a bachelor’s in English from Clemson University.