An increase in operating costs affected the financial performance of Kaiser Foundation Health Plan Inc. during the second quarter.

Kaiser, Oakland, Calif., is reporting $272 million in net income for the latest quarter on $8.5 billion in revenue, compared with $363 million in net income on $7.7 billion in revenue for the second quarter of 2005.

The nonprofit managed care company ended the quarter providing health coverage for 8.6 million people, up from 8.5 million people a year earlier.

Factors that affected net income included investments in care delivery programs, expansion of health care facilities and “seismic retrofitting,” or efforts to make facilities more resistant to earthquakes, Kaiser says.