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Aetna Reports $1B Profit As Sale To CVS Health Nears Closing

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Aetna earned $1 billion in the third quarter on strong growth of Medicare and Medicaid health plans as the insurer prepares to be taken over by drugstore giant CVS Health.

Aetna Tuesday reported net income jumped 19% to $1 billion in its third quarter compared to $838 million in the year ago period. Revenue rose 3% to nearly $15.5 billion.

The nation’s third largest health insurer, Aetna will soon be operating under CVS, which operates pharmacies, retail health clinics inside its stores and one of the nation’s largest pharmacy benefit management companies that already has a contract with Aetna.

“Our combination with CVS Health will drive the next phase of Aetna’s growth and accelerate our opportunity to help transform the health care system,” Aetna CEO Mark Bertolini said in announcing third-quarter earnings. He held no conference call due to the pending sale to CVS.

But Aetna appeared to reassure investors and analysts with the announcement that the highly scrutinized deal was nearing the goal line. It was granted preliminary approval from the U.S. Justice Department earlier this month once Aetna's Medicare Part D prescription drug plan business for individuals is divested to WellCare Health Plans.

“With our extensive integration planning process now set to shift to an implementation phase, I am confident the combined company is well positioned to begin the next stage of our journey,” Aetna executive vice president and chief financial officer Shawn Guertin said.

Aetna will bring to CVS health plan membership totaling 22.1 million as of Sept. 30. That number was largely flat compared to the year-ago period, but grew from the second quarter to the third quarter. "The increase primarily reflects increases in Aetna’s Commercial ASC, Medicare and Medicaid products, partially offset by decreases in Aetna’s Commercial Insured products," Aetna said in its earnings report.

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