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Aetna notches $1B in Q3 profits, absorbs $130M arbitration payment over exchange exit

October 30, 2018 / Evan Sweeney

Aetna reported $1 billion in net income during the third quarter of 2018, in what is likely the insurer's last earnings report before it is absorbed by CVS. The strong quarter was buoyed by growth in the Medicare Advantage segment, where the insurer added 283,000 members since the same quarter last year. All told the Medicare Advantage segment is closing in on 1.8 million people. However, Aetna also absorbed a $130 million judgment tied to an “unfavorable provider arbitration ruling related to Aetna's exited individual public health insurance exchange,” according to Tuesday’s financial filing. Aetna began leaving the Affordable Care Act marketplace in 2016 and fully exited the exchanges this year, shortly after the Department of Justice blocked its merger with Humana. A court ruling showed that Aetna initially left some of those exchanges to bolster its defense of the merger, and CEO Mark Bertolini tried to leverage the company’s exchange participation i...