Aetna to Take Charge of Approximately $60 Million to $65 Million for Job and Real Estate Actions

–(– 01/02/2010 – Health Care Plans industry news provided by Financial News USA. Aetna (NYSE: AET – News) today announced that it expects to incur a fourth-quarter 2009 charge of approximately $60 million to $65 million, after tax.1 This charge is due to the previously announced and completed reduction of approximately 625 positions and real estate consolidation that together are expected to result in a charge of approximately $40 million, after tax, and a similarly sized workforce reduction to be completed by the end of the first quarter of 2010 that is expected to result in a charge of approximately $20 million to $25 million, after tax. [Read the full article]

Health insurer Aetna Inc (NYSE:AET – News) said on Wednesday it expects to take a charge of $60 million to $65 million in the fourth quarter of 2009 to cover costs associated with job cuts and real estate consolidation.

The company expects to take an after-tax charge of $40 million associated with its previously announced plan to cut 625 jobs, as well as consolidation of real estate.

A similarly sized workforce reduction to be completed by the end of the first quarter of 2010 is expected to result in a charge of about $20 million to $25 million, after tax, the Hartford, Connecticut-based company said.

Aetna said the job cuts are based on the company’s membership outlook for 2010 and made in preparation for the impact that health care reform and regulatory changes may have on the company’s business.

As Washington continues to micro-manage various industries via royal decree, it is becoming increasingly evident that Congress is afflicted by some combination of the following conditions: Ignorance of industry specific business models An inability to read financial statements Willful disregard of #s 1 and 2 Delusions of grandeur Now, I will readily admit that the near collapse of the financial system is evidence in and of itself that the pre-crisis regulatory framework was flawed. However, the solution to ineffective regulation is not the passing of more ineffective regulation. In other words, Congress seems to assume that capitalism’s regulatory guard rails simply weren’t strong enough, as opposed to questioning whether those rails were even in the proper location. The latest Congressional foray into the ineffective regulation of business is contained within H.R. 3962 (the Health Care bill). [Read the full article] About Financial News USA

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