News Headlines Article

Health insurers adjust to once-scary reform rule
San Francisco Chronicle

A new health care overhaul mandate that once stirred fear among insurers is proving to be challenging — but not too challenging — as it makes its debut in 2011.

Major health insurers say a provision that requires them to spend a certain percentage of the premiums they collect on care-related costs will eat into earnings this year. But Aetna Inc. and Cigna Corp. both say their profits could still grow in 2011, and Aetna also plans to start paying a significantly higher dividend to shareholders this year.

Commands