Aetna (AET)

Aetna's innovative tendencies are appealing. Although its commitment to transparency, for example, has not demonstrated obvious profitability, innovation is often rewarded.

Obama's $789 billion stimulus package includes a provision to provide some $86 billion to states to help subsidize Medicare and other health insurance costs. With many states considering cutting Medicare benefits due to budget deficits from lower tax revenues, this development may help insurers such as Aetna preserve business.^[1]

Aetna's Q3 2007 organic growth in membership exceeded internal projection of 200,000, reaching 230,000. Aetna has raised it's projection for FY2007 from 575,000-600,000 to 600,000-650,000 new memberships.

Aetna's Q3 2007 organic growth in membership exceeded internal projection of 200,000, reaching 230,000. Aetna has raised it's projection for FY2007 from 575,000-600,000 to 600,000-650,000 new memberships.

Aetna is a leader in bundling, which means it will continue to sell insurance to companies. This represents stable business growth for the future.

Aetna's bottom line is very appealing. It is the clear industry leader by operating margin, and low costs are important. Insurance of any kind is a risky field, yet Aetna has shown a clear ability to generate profits in the face of uncertainty by keeping medical costs down.