Summary

We need to look at the overall picture and not just the current numbers.

Analysis

Aetna has been such a dominate player in this market for so long that it was only a matter of time before you would have a drop.
Yet 7/1/06 they announced new CDHP plan offerings and have come back to the pack in this highly competitive market place and are now showing up #1 or #2 on your average spread sheet for health plans in the Tristate area.
Since Aetna's price increase announcement in Aug '04, we had seen a trend for their premiums increasing an average of 20%. That carried through 2Q '06. Then they come up with better CDHP plans and lower rates on those CDHP plans as compared to the other carriers and bingo, they are getting the bulk of the business again.
We feel this will be the trend for the next few quarters and with the drop out of Wellchoice NJ, you will see Aetna gain even more members in the coming months.

 

Anthony Cancela consults with leading institutions through GLG

Anthony Cancela, President

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President, CANCELA INSURANCE BROKERAGE, LLC

 
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.