In recent years, despite soaring medical costs, insurers have made big profits by keeping premiums well ahead of health care inflation. But analysts say that business strategy may be reaching its limits, with companies finding it harder to raise prices without losing substantial numbers of customers.
The news follows WellPoint’s announcement last month that it faced similar problems.
United Airlines parent reported a $537 million loss on higher fuel costs and said it will cut 1,100 jobs. Its stock was “bludgeoned” as the WSJ puts it nicely, falling 37 percent.