NU Online News Service, Oct. 31, 2003, 4:31 p.m. EST – Coventry Health Care Inc., Bethesda, Md., says rate increases and successful efforts to hold down claim costs helped it increase its net income 68% in the third quarter.
The managed care company is reporting $67 million in net income for the latest quarter on $1.1 billion in revenue, up from $40 million in net income on $892 million in revenue for the second quarter of 2002.
The company ended the quarter providing or administering medical insurance for 2.4 million people, up from 1.9 million people a year earlier. Average commercial revenue per commercial member increased 12%, to $625.
Coventry is expecting revenue to continue to rise in 2004: customers who renewed their coverage during the third quarter accepted average rate increases of about 13.5%.
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