STARK TO INSURERS: PASS YOUR WINDFALL ON TO CONSUMERS
Congressional Desk
August 27, 2010
WASHINGTON – Rep. Pete Stark (D-CA), Chairman of the Ways and Means Health Subcommittee, reacted to mid-year earnings reports from Wellpoint and Aetna, showing that the companies have been reaping hundreds of millions more in profits while spending hundreds of millions less on medical care.
Aetna reported that their profits rose by over 34 percent to $1.05 billion for the first half of 2010, compared to the same period in 2009. They also spent $557 million less on medical care.
Wellpoint reported that their profits rose by over 25 percent to $1.6 billion for the first half of 2010, compared to the same period in 2009. They spent $1.21 billion less on medical care.
Chairman Stark: "Wellpoint and Aetna are on track for great years with multi-billion dollar profits. Now it's time for them to return those windfalls to their enrollees in the form of reduced premiums. With business booming, there is no excuse for any premium hikes or benefit cuts next year by Wellpoint or Aetna in their private sector or Medicare Advantage plans."
The other week, UnitedHealthcare also announced record profits. In the first six months of 2010, their profits rose by $471 million – over 25 percent – to $2.3 billion. They took in $2.4 billion more in premiums, but only spent $1.3 billion more in payments for medical care.
Aetna reported that their profits rose by over 34 percent to $1.05 billion for the first half of 2010, compared to the same period in 2009. They also spent $557 million less on medical care.
Wellpoint reported that their profits rose by over 25 percent to $1.6 billion for the first half of 2010, compared to the same period in 2009. They spent $1.21 billion less on medical care.
Chairman Stark: "Wellpoint and Aetna are on track for great years with multi-billion dollar profits. Now it's time for them to return those windfalls to their enrollees in the form of reduced premiums. With business booming, there is no excuse for any premium hikes or benefit cuts next year by Wellpoint or Aetna in their private sector or Medicare Advantage plans."
The other week, UnitedHealthcare also announced record profits. In the first six months of 2010, their profits rose by $471 million – over 25 percent – to $2.3 billion. They took in $2.4 billion more in premiums, but only spent $1.3 billion more in payments for medical care.
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