Health Net’s Second-Quarter Profit, Enrollment Increase
Officials for Woodland Hills-based Health Net, one of the state's largest health insurers, reported yesterday that second-quarter profits increased 15% to $75 million, or 63 cents per share, from $65 million, or 51 cents per share, a year earlier, the Los Angeles Times reports. For the quarter, revenue rose 10% to $2.75 billion, from $2.51 billion a year earlier as the company increased premiums and membership. Overall, Health Net's enrollment increased by 50,000 to 3.9 million people from the end of the first quarter to the end of the second quarter. Despite the second-quarter increase, enrollment was down compared to a year earlier, reflecting a loss of 175,000 CalPERS members after Health Net and CalPERS ended their business relationship. Health Net officials also announced that the company increased fiscal-year earnings estimates to between $2.63 and $2.67 per share from a past estimate of between $2.56 and $2.60 per share (White, Los Angeles Times, 8/5).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.