US's third largest insurance company, Aetna Inc has increased it profit forecasts for the year 2010. This is the second time that the insurer changed its forecasts following a season where the costs were reduced because of the milder-than-expected flu season and improved coordination between the doctors.

These factors in a combined effect reduced the total healthcare costs.

The Connecticut-based company also said that its operating earnings are expected to reach between $3-3.05 per share. This is higher than the $2.75-2.85 per share prediction that was made in April.

Besides this, Aetna has also given a 12-year long contract to CVS Caremark Corp. for managing some of the pharmacy benefits earlier given to Woonsocket. The total customer base for this service is 9.7 million.

Chief Financial Officer Joseph Zubretsky said that reduction in costs added another 30 cents into the second quarter earnings of the company. The money thus increased will now be used by the firm to upgrade its computer system so that it is able to meet with the US health overhaul that was enacted in March.

Analysts also support his views saying that the medical costs have been better than it was anticipated.