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

PacifiCare Increases 3Q Net 54% As Membership Drops 9.6%

Your article was successfully shared with the contacts you provided.

NU Online News Service, Nov. 6, 2003, 4:31 p.m. EST – PacifiCare Health Systems Inc., Cypress, Calif., says a big increase in the average amount of revenue it gets for commercial plan members helped it increase its third-quarter net income 54%.

The managed care company is reporting $67 million in net income for the latest quarter on $2.7 billion in revenue, up from $44 million in net income on $2.8 billion in revenue for the third quarter of 2002.

The company ended the quarter providing or administering coverage for 2.9 million people, 9.6% fewer than it covered a year earlier. The company lost some members due to a decision to withdraw from the California Public Employees’ Retirement System health plan.

But average commercial revenue per commercial plan member increased 15%, to $577.

Because average revenue per member was so much higher, the ratio of medical claims costs to premiums fell to 83.6%, from 85.5% for the third quarter of 2002, PacifiCare 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.