Golly-gee-bob! Look at how well Obamacare is working! For the insurance company’s bottom line that is.. And for us insured little people? Not so good..
Despite the gloom and doom of Obamacare predictions,
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capitalism is alive and well in the health care marketplace. In the first quarter after the insurance provisions of the Affordable Care Act have gone “live,” the insurers are now releasing their earnings reports. How is it looking so far? Great for the insurers, not so great for the insured..
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WellPoint WLP +0.1% beat earnings estimates by 20 cents a share and raised earnings estimates for the year. From their press release, “Our membership is growing across our platforms and we are pleased with the progress we have seen in the exchanges.” Their dividend paid to investors will be $0.4375 per share, which on an annualized basis results in $493.6 million paid to shareholders in 2014.
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Aetna AET +0.07% reported earnings of $1.98 per share, which is an increase of 27% over the first quarter of 2013. From their press release, “Aetna posted higher operating earnings, operating revenues and medical membership in the first quarter, each representing historic highs for our company.” They repurchased 6.5 million shares for $465 million in the first quarter. Their dividend paid to investors will be $0.225 per share, which on an annualized basis results in $330.75 million that will be paid to shareholders.
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Cigna CI +0.74% reported a revenue increase of 4% over the first quarter of 2013. From their press release, “Results in the first quarter of 2014 reflect solid revenue growth, disciplined expense management and continued effective medical cost management.” Year to date, Cigna has repurchased $425 million in stock. The dividend payout is $0.04 per share annually, or $10.75 million that will be paid to shareholders.
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UnitedHealthcare’s first quarter earnings actually fell 7.8% but they still had a profit of $1.10 per share, or $1.1 billion. Revenue rose 4.5%. The annualized dividend is $1.12 and results in $1.116 BILLION that will be paid to shareholders in 2104.