NU Online News Service, Aug. 1, 4:41 p.m. – PacifiCare Health Systems Inc., Cypress, Calif., is reporting $20 million in net income for the second quarter on $2.8 billion in revenue, compared with $15 million in net income on $3 billion in revenue for the second quarter of 2001.
PacifiCare, a managed care company, provided or administered major medical coverage for 3.3 million people at the end of the quarter, down from 3.7 million people a year earlier.
Commercial premium revenue per commercial health maintenance organization member increased 18%, to $526.
Commercial enrollment fell because of rate increases, efforts to pull back from unprofitable markets, and decisions to drop higher-cost health care providers from provider networks, PacifiCare says.
PacifiCare notes that it wrote off $13 million in investments in companies such as WorldCom Inc., Clinton, Miss., and MedUnite Inc., San Diego, a company that has been setting up an electronic communications system that would link physicians with health insurance carriers.