Managed Care Companies Still Seeing Low Medical Usage: Credit Suisse
By Avi Salzman

People are still staying away from the doctor, a trend that has helped boost health insurance companies’ profits considerably in the last few months, write Credit Suisse analyst Charles Boorady.

Boorady writes in a note today that he met with management of Aetna (AET) and CIGNA (CI) and was pleased to learn that the companies havenm’t been noticing an uptick in patient utilization in the second quarter, meaning their medical loss ratios (MLR) may continue to be particulalry low going forward.

“Companies are unsure as to whether the moderation in medical trend is purely economy-driven, or structural (consumers altering healthcare consumption levels for the long-term),” he writes.

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