PacifiCare Second-Quarter Income Up
Cypress-based PacifiCare on Thursday reported that net income for the second quarter increased by 20% to $92.6 million, or 96 cents per share, up from $76 million, or 80 cents per share, a year earlier, the Los Angeles Times reports. Revenue increased by 18% to $3.6 billion.
Company officials attributed the profits to higher premiums, reduced medical costs and increased membership.
PacifiCare has about 3.3 million health plan members and about 11.3 million members enrolled in dental and other specialty plans. Senior membership increased by 1%, or about 8,000, during the second quarter and by about 6% since the second quarter of 2004. In addition, membership in commercial plans, including managed care and PPO plans, increased by 5% over the first quarter.
Monthly premiums increased by about 6% on average.
PacifiCare also reported $4 million in costs related to a planned acquisition by Minnesota-based UnitedHealth Group. Preparations for the launch of the Medicare prescription drug benefit cost PacifiCare $7.6 million in the second quarter, the company announced (Vrana, Los Angeles Times, 7/29).
Additional information on the Medicare drug benefit is available online.