Health Net snares profits
Health Net, Woodland Hills, Calif., boosted its first-quarter net income 17% to $49 million, or 47 cents per share. Revenue for the quarter ended March 31 fell 2.5% to $2.02 billion, and enrollment dropped 2.2% to 2.78 million members. Thanks to steady premium increases, medical costs ate up a smaller share of Health Net's commercial premium revenue, 84.5% compared with 85.2% a year earlier. Administrative costs consumed 13.9% of revenue, down from 14.5%.
PacifiCare takes big hit
PacifiCare Health Systems, Santa Ana, Calif., posted a massive net loss of $858.8 million, or $24.86 per share, compared with net income of $13.1 million, or 39 cents per share, a year earlier. The results for the quarter ended March 31 include a one-time, noncash charge of $897 million to write off good will as mandated by new federal accounting rules. Excluding one-time items, profit would have risen to $30.1 million, or 87 cents per share. PacifiCare's revenue fell 6% to $2.9 billion, mostly because of lower membership.
Income plunges at Cigna
Cigna Corp., Bloomfield, Conn., reported first-quarter operating income of $275 million, or $1.92 per share, including a benefit of $14 million, or 8 cents per share, from new federal accounting rules. Including investment losses, however, Cigna's net income fell 21% to $218 million, or $1.52 per share, from $276 million, or $1.78 per share, a year earlier. Revenue inched up 2% to $4.83 billion.
Oxford sees modest growth
Oxford Health Plans, Trumbull, Conn., reported modest but better-than-expected growth for the first quarter ended March 31. Net income rose 5.7% to $71.4 million, or 78 cents per share, compared with $67.7 million, or 65 cents per share, for the year-ago period. Revenue climbed 8.4% to $1.17 billion.