Don’t Cry for Managed Care Companies

Q2 2009 Managed Care Profits Stagnate

by Carl Mercurio

Second-quarter 2009 net income for the healthcare operations of 10 top managed care organizations rose 1% to $2.095 billion on revenues of $65.433 billion, up 5.6%, according to a tally in the latest issue of Managed Healthcare Market Report. 

The figures include United Healthcare Services (United Healthcare, Ovations, AmeriChoice) Aetna Healthcare and Cigna HealthCare. Including the corporate parents, second-quarter net income rose 32% to $2.776 billion on revenues of $68.67 billion, up 5.2% — largely because in 2008 United took nearly $1 billion in charges to settle class action litigation related to its stock options practices.