MA Insurers’ 3Q Earnings Reflect COVID Expenses

Select publicly traded insurers reporting third-quarter 2020 earnings this past month predicted big gains in Medicare Advantage enrollment during the current Annual Election Period (AEP), and noted that growth in government products helped offset the impact of commercial losses and COVID-19 costs in the recent quarter.

Reporting third-quarter 2020 earnings on Nov. 6, CVS Health Corp. said a 3.5% year-over-year increase in overall revenues was due in part to growth in its Health Care Benefits segment, which includes Aetna. Revenues in that segment rose 8.8% from the prior-year quarter to $18.7 billion, primarily driven by membership increases in Aetna’s government products and the favorable impact of the return of the Affordable Care Act health insurer fee for 2020. Those gains were partially offset by the divestiture of Aetna’s stand-alone Medicare Part D Prescription Drug Plans (PDPs) — a condition of its acquisition by CVS — membership losses in commercial products, and COVID-19 related investments, CVS Health explained.

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