Market Overview

Aetna CEO Mark Bertolini Talks Medicare Advantage Growth

Related AET
Obamacare: Permanent Problem for Health Insurers? - Industry Outlook
#PreMarket Primer: Tuesday, October 28: CDC Warns That Involuntary Quarantines Could Discourage Progress On Ebola
WellPoint Profit Beats, ObamaCare Spurs Enrollment (Fox Business)

President, Chairman and CEO of Aetna (NYSE: AET) Mark Bertolini commented on the company's Medicare Advantage product and its growth across the country on CNBC's Squawk Box Wednesday morning.

According to Bertolini, “Medicare Advantage is too big now,” a perception that some policy makers agree with, which is his reasoning for rate increases and attempts to crush Medicare contracted plans altogether.

“We had a lot more Medicare enrollment than we even anticipated,” said Bertolini in regards to their revenue number, going on to say that it's too early to raise the earnings target until they know more information about the ages and needs of the enrollees.

Related: 14 Cannabis Stocks To Watch In 2014

As Medicare revenue rises nationwide, Aetna's Medicare Advantage, which utilizes Medicare to provide patients with Part A and Part B benefits, is something that Bertolini sees as attractive to recent retirees. He noted the overall market's 1.5 percent increase.

“People retiring now are more than likely to pick a Medicare Advantage plan because they're used to working with managed-care plans, they're used to those kinds of networks,” said Bertolini.

“Versus people that are over 70, who you know, hold onto that red, white, and blue card with, you know, for dear life.”

Jason Cunningham had no position with the mentioned entities while writing this article. Visit Jason on Twitter at @JasonCunningham and @Benzinga.

Posted-In: CNBC CNBC's Squawk Box Mark Bertolini medicareCNBC Politics Media General Best of Benzinga

 

Related Articles (AET)

Around the Web, We're Loving...

Get Benzinga's Newsletters