Aetna An Analysis Of The Health Insurance Giant

First of all, return on asset (ROA) is a ratio used to measure how efficient a company generates profit using its assets, which is the invested capital. We noticed that HH’s ROA was increasing from 2006 to 2010. However, HH’s ROA for 2011 dropped dramatically from 18.41%(year

High concentration in the market, as we all know, leads to market inefficiency, where insurers are able to set inadequate or unfairly discriminatory premium rates. Few oligopoly firms operating in the statewide markets are definitely to use market power for their advantages. These can be tightening barriers to entry what some of the US health insurers have been doing. For instance, large insurance companies like UnitedHealth Group, WellPoint and Aetna have been acquiring existing smaller health insurers without developing their own networks and products. These acquisitions tend to decrease competition and thus making insurance market more concentrated. On the other hand, there are more of the few ways of getting rid of competitors, one of them being through cost-efficiency. As far as Choi and Weiss (2005) concerned, cost-efficient firms are able to minimize cost and thus charge lower prices than competitors, which

At the point when scanning for a healthcare quotes arrangement on the web, there are some sure steps you can take to make the most out of your hunt while finding the arrangement that will spare you the most cash conceivable. One imperative thing to know about is that Aetna health insurance quotes are presently being offered online for nothing. Numerous healthcare quotes insurance suppliers have truly charged for this data, yet still have genuinely costly plans and related rates. While asking for Aetna health insurance quotes online you should simply let them know your postal division and you will be well on your approach to finding a health care arrange for that is a good fit for you. Whether you are presently

Since an ROE of 21.48% equals the product of 4.41% and 4.87 (ROA and Equity Multiplier), it indicates that the firm is able to achieve such high ROE only through a high financial leverage.

It is necessary for a firm to expand in order to gain profits or leverage in a market place. One of the ways firms can do this is by executing a merger. There are two types of mergers, horizontal and vertical mergers. There are many incentives for companies to perform either type of merger; however, both types of mergers will always raise suspicion when being executed because they are usually perceived as anticompetitive. In order to prevent an anticompetitive environment, our government established a federal agency called the Federal Trade Commission. Their job is to review the activity of any given firm and decide whether or not to allow them to continue. Presently, CVS and Etna are currently undergoing a vertical merger to gain profits and

Aetna Medicare Plan (PPO) offers advantages such as comprehensive annual examination and fitness facility membership at without a cost, according to Aetna. It also offers in-network coverage regardless of where a member travels to.

Anthem Inc and Cigna Corp are suing each other for breaching their merger agreement. Anthem and Cigna originally had a deal made in 2015 that would consolidate the top of the industry in to a few big corporations, but there were behind the scenes conflict between the two partners. The Justice Department filed an antitrust suit to block the deal. Federal judge decided against the merger and Anthem appealed the verdict to the Supreme Court. Anthem decided to terminate the merger agreement stating that Cigna former partner sabotaged the deal and stated that is would seek to claim massive damages against Cigna.

Although Anthem is regarded as highly lucrative, the company’s profit margins are extremely low due to the highly competitive and regulated industry. Because there is limited opportunities for market growth, health insurance companies remain competitive by merging with other companies. Anthem is currently in the process of finalizing an acquisition deal with Cigna. This deal has been faced with much scrutiny and pushback from government due to monopoly regulations. If the deal does not go through, Anthem will have to pay a large penalty fee to Cigna. Along with this financial cost, Anthem would also lose time and resources that they have dedicated to this strategy over the past two years. Because of the competitive environment and high stakes, Anthem began cutting costs throughout the company.

Aetna has weak tangible resources. Although, their financial standing has improve from $42.8 billion to $52.7 billion yearly, reducing the cost of goods sold about 1% (Consoliated). This correlates with the Health Reform legislation passed and the number of additional buyers (Dialynas, Chew and Kristof). As of March 31, 2015, return on assets is 5.01% and capital is at 11.32% return (Consoliated). Aetna has a maximum borrowing capacity from the Federal Home Loan Bank of Boston of approximately $882 million (USSEC). They depend highly on Large Case Pensions due that this segment provides most of their profit (AET). They have added new technological equipment that they hope will productivity effectiveness and efficiently (Aetna Buys Exchange

Less than two months apart a pair of mergers involving four of America’s top five largest for-profit health insurance companies: Aetna Inc. and Humana Inc., Cigna Corp. and Anthem, have signaled a major shift in the nation’s health care marketplace. The federal government, formerly just a regulator of health insurance companies, has become one of their most important customers through public financing of health plans provided by private insurers. The pressure is on for health insurance companies to acquire smaller companies or be bought out by a larger company to lower costs and maximize profits. Should the government allow the health insurance system to be dominated by two or three enormous for profit companies?

McClure, B 2016, Use ROA to Gauge A Company’s Profit, Investopedia, viewed 20 September 2016, (-- removed HTML --) .equity multiplier

Aetna and Apple have formed a small partnership together to subsidize Apple watches to Aetna customers. Aetna has a plan for certain individuals who meet their requirement that have the option from an employer to purchase an Apple watch for a fraction of the cost that a new watch would be. The reason for this type of promotion is that Aetna is trying to motivate more people to live a more active and healthy lifestyle. Aetna is also offering their customers who are eligible for the Apple watch a monthly payment plan for the remaining cost of the watch. “Aetna is working with Apple on several iOS-exclusive health initiatives, starting with integrated health apps for the iPhone, iPad, and Apple Watch that will help users to better “manage

Aetna is one of the nation’s leading diversified health care benefits companies, serving an estimated 44 million people with information and resources to help them make better informed decisions about their health care. The assignment given is about Strategic Management and Strategic Competitiveness for which the author has chosen Aetna. The author is required to assess how globalization and technology changes have impacted the Corporation. Secondly, to apply the industrial organization model and the resource-based model to determine how the corporation could earn above-average returns. Furthermore, to assess how the vision statement and mission statement of the corporation influence its overall success. In addition, to

I have worked for Costco Wholesale for awhile in addition to being a student at Loma Linda University and Costco is partnered with Aetna to provide it’s employees with health insurance. I realized I know virtually nothing about this company, so I thought it might be a good idea to select this company for my research paper.

My company switched insurance providers to Aetna and did not notify us... neither did Aetna. I get a bill a year later stating I owe my doctor money. I call United, they call my company HR. They call Aetna. I get this Indian guy I'm having trouble understanding, but I can hear his attitude. It took me 5 times to explain that of course, my doctor's office didn't file it correctly because I wasn't notified of any change. I asked why he didn't get some basic info from my HR rep when she WAS JUST ON THE PHONE WITH HIM! I don't know the service date; I don't know anything because I switched companies 8 months ago. This company can't do any investigating on their own. I've been given the runaround. They can't notify their subscribers. Don't get involved