Profit in the third quarter of fiscal year 2016 for Aetna increased 8 percent from the same period last year to a total of $603.9 million.
The Hartford, Conn.-based payer reported a 6 percent increase in total revenue from the same period in fiscal year 2015 to a total of $15.8 billion. The payer attributed its increase in total revenue to higher healthcare premium yields and growth in its government business membership.
The insurer's total revenue was partially offset by declines in its commercial health plan business. Aetna is projecting a loss of about $350 million on ACA plans this year, up from its initial projection of more than $300 million in August, reports The Wall Street Journal. The insurer will pull out of the majority of ACA exchanges it participated in this year.
"Solid performance among our core businesses and a focus on managing general and administrative expenses have once again offset pressure from our ACA-compliant products, resulting in a strong third quarter for the company and our shareholders," Shawn Guertin, Aetna executive vice president and CFO, said in a prepared statement.
Aetna's total membership decreased 1.6 percent to 23.1 million from the same period last year.
Year-to-date, the payer reported net income of $2.1 billion. The company raised its full-year net income per share to between $6.89 to $6.99, up from $6.28 to $6.48 in the second quarter of this year.
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