WellPoint Reports Increase in Third-Quarter Earnings
WellPoint on Wednesday announced that third-quarter earnings increased by 7.1% to $868 million, or $1.45 per share, from $810.8 million, or $1.29 per share, a year earlier, the Indianapolis Star reports (Lee, Indianapolis Star, 10/24).
Third-quarter revenue increased by 5.4% from a year earlier to $15.23 billion because of higher premiums in local group health plans and increased membership in plans sponsored by state governments and Medicare Advantage plans, WellPoint said (Shwiff, Wall Street Journal, 10/24). According to WellPoint, membership in company health plans at the end of the third quarter totaled 34.8 million, compared with 34.2 million a year earlier (Murphy, AP/Long Island Newsday, 10/24).
WellPoint also reported a third-quarter medical-loss ratio, the percentage of premium revenue used to cover the cost of medical bills for members, of 81.8%, compared with 81.3% a year earlier, in large part because of increased membership in MA plans.
In addition, WellPoint increased full-year earnings estimates by one cent per share but decreased revenue and membership estimates (Wall Street Journal, 10/24).