Profits up at most health plans
Quick View. Dec. 1, 2003.
Health plans saw big gains this fall over 2002.
|
Revenue |
Change |
Net income |
Change |
| Aetna |
$4.5 billion |
-6.3% |
$216 million |
118.2% |
| Anthem |
$4.3 billion |
19.4% |
$197 million |
15.2% |
| CIGNA |
$4.8 billion |
-5.9% |
$204 million |
1.0% |
| Health Net |
$2.8 billion |
7.7% |
$2.4 million |
-103.5% |
| Humana |
$3.1 billion |
10.7% |
$62 million |
19.2% |
| Oxford |
$1.4 billion |
7.7% |
$111 million |
362.5% |
| PacifiCare |
$2.7 billion |
0% |
$68 million |
54.5% |
| UnitedHealth |
$7.2 billion |
18.0% |
$476 million |
34.8% |
| WellPoint |
$5.0 billion |
11.1% |
$246 million |
16.6% |
Most major health plans continued to enjoy increased revenues and significant profit growth during the third quarter of 2003, compared with their numbers a year ago. Taken as a group, nine managed care companies had a mean growth of 6.9% for third-quarter revenues over the same period last year. Eight of the plans showed positive net income for the third quarter. Oxford Health Plans showed the single most impressive profit gain, year over year.
Health Net posted a decline in net income on a slight increase in revenue, attributing the loss to a litigation settlement.
In explaining their profit increases, plans pointed to the introduction of more profitable insurance products, a slowing of medical costs, reductions in administrative expenses brought by increases in membership and imposition of higher premiums.
Third-quarter financial results, with change over the same period last year:
Source: Company 10Q reports filed with the Securities and Exchange Commission
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Copyright 2003 American Medical Association. All rights reserved.
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