Aetna Competition
Now Viewing Aetna's competition in: Managed Healthcare (primary)
Recent Developments
Spending on Prevention Grows in Popularity - Preventive care and wellness strategies are growing in popularity as ways to slow rising healthcare and insurance costs. Businesses in particular feel that by encouraging employees to quit smoking or lose weight, they can save on insurance costs. According to Health2 Resources, 71 percent of employers offer incentives for employee wellness in 2008, compared to 62 percent in 2007. According to Trust for America's Health, $10 of per capita spending on wellness would result in $16 billion in long-term healthcare cost savings in the US.
Coalition Addresses Performance Measurement - To standardize inconsistencies in measuring physician quality, MCOs are among those leading the way toward a new system. The new report card will measure the quality of care given by physicians based on several indicators, not just cost. Among those participating in the project, called the "Patient Charter for Physician Performance Measurement, Reporting and Tiering Programs," are Aetna, CIGNA, and UnitedHealth, some of the industry's largest companies.
Health Insurance Technology Continues Move Forward - The nation's largest MCOs continue to work toward more advanced technology, most recently through alliances with technology companies such as Microsoft and Google. A major new area for innovation investment is online medical records and services. Kaiser Permanente and Blue Cross Blue Shield of Massachusetts are among those working with technology companies to create platforms that will allow patients to easily transfer records from one provider to another, known in the industry as "portability."
Competitive Landscape
Demand is driven by the rising costs of providing medical care. The profitability of individual companies depends on efficient operations and the ability to negotiate favorable contracts with healthcare providers. Large companies and organizations have advantages in negotiating contracts with healthcare providers. Small companies can compete successfully only by providing special coverage plans, or in small markets. The industry is highly automated: annual revenue per employee is close to $1 million.
Managed Healthcare Industry Forecast
from Hoover's/D&B subsidiary First Research
US personal consumption expenditures on health insurance premiums, an indicator for managed healthcare services, are forecast to grow at an annual compounded rate of 2.5 percent between 2008 and 2013.
Consumer Spending Growth on Health Insurance Premiums Steady
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

- Demand: Driven by aging population
- Need technical expertise
- Risk: Regulators limit premium increases
Industries Where Aetna Competes
- Health Care
- Health Care Services
- Health Care Plans (primary)
- Health Care Services
- Financial Services
- Asset Management
- Insurance





