Strong performance of commercial and Medicare health plans during the second quarter helped Sierra Health Services Inc. overcome the pain of losing a major military managed care contract.[@@]
Sierra, Las Vegas, is reporting $34 million in net income for the latest quarter on $348 million in revenue, compared with $38 million in net income on $441 million in revenue for the second quarter of 2004.
Sierra once was a major vendor in the TriCare program, a program that provides health coverage for military personnel, military dependents and military retirees who are away from military and veterans health care facilities.
Sierra lost the contract. Because of the loss of the TriCare contract, Sierra ended the second quarter providing or administering health coverage for only 585,700 people, down from 1.2 million people a year earlier.
But commercial health maintenance organization membership grew 14%, to 245,100, and Medicare membership grew 4.8%, to 54,700, Sierra says.
Premium revenue from core managed care operations increased 14%, to $320 million.