Dallas, Texas 11/01/2013 (Financialstrend) – Health Care insurance provider Cigna Corp. (NYSE:CI) reported its 3Q earnings report on October 31. The company reported earnings and revenue which were well ahead of the Wall Street estimate. Thanks to the close to 10% increase in revenue during its 3Q in comparison to 3Q12 and a 12% increase in net income in the same comparison period the stock rallied close to 3.14% upwards during trading yesterday. The company is also betting on the full effects of Obhamacare law to drive its profits over the next few quarters as previously uncovered individuals will be thronging the federally funded and maintained insurance exchange portal looking for new insurance covers. This rush is expected since the provisions of the law will permit government to fine individuals who do not own health insurance.
Readers should note that the central online exchange which is the brain child of the Obhama administration and is expected to serve as the backbone of the entire exchange traded health care insurance program is facing technical issues and security scares over the past few days. The administration has swung into the act and has sought the services of tech majors like Oracle, Google to help sort out the mess.
While most insurance providers have been gung ho about the exchange and its benefits, David Cordani CEO of Cinga has gone on record to point out some perceived short term drawbacks of some of the provisions of the health care act by stating that “When you are that individual who has a benefit plan and it’s working for you and your family at your current life stage and you are told that you no longer have that choice, that’s disruptive and that’s the environment that as a country we are going through right now.” Shares of Cigna were trading at $76.98 on October 31.