When Consumers Delay or Forgo Care, Insurers Profit

The poor economy has led to rising and persistent unemployment, belt-tightening and a lower standard of living for many Americans. But this cutting back hasn’t been bad for everyone. As consumers put off medical care like doctor visits and surgery or were dropped off private insurer rolls altogether, some of the country’s largest health insurers actually saw profits rise.

Last week, UnitedHealth Group, the nation’s largest private insurer, reported a 13% increase in net profits and earlier this week Aetna (the third largest insurer in terms of market value) reported that its second-quarter net income rose 9%. According to Reuters, Aetna’s stock shares are up about 40 percent this year as well.