Aetna down 12% on rising medical costs . . . .

[abumbyanyothername]

http://news.yahoo.com/s/nm/20090727/bs_nm/us_aetna_4

By Lewis Krauskopf

NEW YORK (Reuters) – Aetna Inc (AET.N) sharply cut its full-year earnings forecast on Monday because of higher-than-projected medical costs, sending shares down as much as 12 percent as the health insurer also posted a 28 percent drop in second-quarter net income.

Aetna, one of the largest providers of employer-based insurance, has boosted its enrollment while rivals struggle with such gains, but some analysts have worried that the gains could be a sign the company is underpricing and sacrificing profit margins.

The lower earnings reflect "the consequences of Aetna's aggressive market share strategy," Goldman Sachs analyst Matthew Borsch said in a research note.

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more at link

[Newsjock]

1. 'Underpricing'

What utter bullshit.