NU Online News Service, July 17, 2003, 5:58 p.m. EDT – UnitedHealth Group Inc., Minnetonka, Minn., did well during the second quarter even though many of the employers it serves were struggling, the company says.
The company as a whole is reporting $439 million in net income for the latest quarter on $7.1 billion in revenue, up from $325 million in net income on $6.1 billion in revenue for the second quarter of 2002.
Revenue at UnitedHealthcare, the high-profile managed care unit, increased to $3.8 billion, from $3.3 billion.
The company ended the quarter providing or administering medical coverage for 7.8 million people, up from 7.6 million people a year earlier.
Average UnitedHealthcare revenue per commercial managed care member increased 12%, to $491.
“Our operating units are currently experiencing strong new business sales for 2004 and have significant sales opportunities still emerging,” Dr. William McGuire, UnitedHealth’s chairman, says in a statement about the second-quarter earnings.
But UnitedHealth says “employment attrition at existing customers” offset much of the effect of plan sales to new customers during the second quarter.