Business
Health plans report earnings
Posted May 28, 2007
Most of the largest for-profit health plans reported making more money in the first three months of 2007.
In earnings reports filed with the Securities and Exchange Commission in April and May, UnitedHealth Group reported a 6% increase in earnings compared with the first quarter of 2006, WellPoint had a 16% jump and Aetna a 7% increase.
Humana and Cigna each reported decreases, although each company noted that its earnings last year had been boosted by one-time investment gains.
United led all plans with $19 billion in revenue for the first quarter of 2007, up 8% from last year's $17.6 billion. It also earned the most money, $1.6 billion. WellPoint collected $14.8 billion for the quarter, up 9% from last year's $13.6 billion in the like period.
Other financial information reported by major plans include: Aetna, $434 million in earnings on $6.7 billion in revenue; Humana, $71 million in earnings on $6.2 billion in revenue; and Cigna, $289 million in earnings on $4.4 billion in revenue.
Every plan's revenue was up from 2006.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/05/28/bibf0528.htm.
