According to Alex Nussbaum at Bloomberg, Aetna Inc., the third-largest U.S. health insurer, slipped the most in two months in New York trading after the company said it was spending more than expected on health benefits for workers who lost their jobs or feared dismissal.
The shares dropped 10 percent, or $2.52, to $21.88 at 4:15 p.m. in New York Stock Exchange composite trading, Aetna’s biggest one-day fall since March 5. The Hartford, Connecticut- based insurer said expenses were pushed higher by dismissed workers who continued buying insurance through the government- subsidized Cobra program, as well as those who ramped up medical treatment as firings loomed.
Will more health insurance carriers face the same troubles as Aetna or will this be a temporary set back for the insurance giant?
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