“Our deliberate approach to our 2025 Medicare Advantage business combined with our improved star ratings will improve margins this year and are part of our ongoing commitment to restore this business to target margins of 3% to 5%.”

In context

“leveraging AI to create a more intuitive workflow and faster turnaround times to reduce frustrations for our members and provider partners. While we are working to address the issues across the U.S. healthcare system, we are also focused on addressing the performance challenges within our own business. At Aetna, we drove meaningful progress improving and strengthening our operations. We have significant opportunities to unlock embedded earnings that is most pronounced in our Medicare Advantage business. Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins. In line with our prior commentary, we expect that we will shrink the Medicare Advantage membership by high single digits percentage from year end 2024. Our deliberate approach to our 2025 Medicare Advantage business combined with our improved star ratings will improve margins this year and are part of our ongoing commitment to restore this business to target margins of 3% to 5%. Last month, CMS released the proposed 2026 Medicare Advantage advanced rate notice. This update does not address the unprecedented utilization trend experienced across the industry over the past two years. Our team is advocating for a more appropriate rate update, including adjustments for the industry-wide cost trends seen in 2024. We are encouraged by the constructive dialog with the new administration to help ensure that American seniors will not continue to see significant disruption to their benefits driven by drastic changes to the Medicare Advantage program. Beyond Medicare, we are also encouraged by progress in our other Aetna lines of business. We are advancing our rate advocacy efforts in Medicaid, we’ve seen higher retention and strong welcome season in our national accounts bo”