An 8.7% increase in the average amount of premium revenue per commercial health plan member spurred second-quarter earnings at Coventry Health Care Inc.[@@]
Coventry, Bethesda, Md., is reporting $129 million in net income for the latest quarter on $1.7 billion in revenue, up from $84 million in net income on $1.3 billion in revenue for the second quarter of 2004.
The managed care company ended the quarter providing or administering health coverage for 2.5 million people, about as many people as it was covering a year earlier.
Although commercial enrollment fell to 1.4 million, from 1.5 million, commercial premium revenue increased to an average of $732 per member, from $673.
The average amount of premium revenue per commercial member will be up about 9% to 9.5% even after adjusting for increases in deductibles and other benefit buydowns, Coventry says.