Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance

Coventry Reports Higher Net Income

Your article was successfully shared with the contacts you provided.

NU Online News Service, Oct. 30, 3:36 p.m. – Coventry Health Care Inc., Bethesda, Md., a managed care company, is reporting $22 million in net income for the third quarter on $795 million in revenue, up from $15 million in net income on $635 million in revenue for the third quarter of 2000.

Coventry sells insurance to individuals and employee health plans. It also provides administrative services for some self-insured employee health plans.

Coventry provided or administered major medical coverage for 1.9 million people at the end of the third quarter, up 19%.

The company generated an average of $491 million in commercial insurance revenue for each member of a commercial health plan during the quarter, up 11%.

But Coventry notes that medical expenses increased almost as fast as rates: the share of premium revenue going to pay claims was 85.9%, down only 0.8 of a percentage point from the medical loss ratio for the third quarter of 2000.

Coventry notes that rates for commercial customers that renewed policies in the third quarter were up 17%.

“The company expects commercial rate increases to exceed 14% for the entire year,” Coventry says.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.