WellPoint Profits Drop But Revenue Grows
Market Watch reports that, while it has benefited from this overall trend, WellPoint has recently been hit by high medical costs for seniors in certain areas, though it expects to have the issue mitigated by 2012.
Los Angeles Times: WellPoint Profit Drops Even As Revenue Grows
Health insurance giant WellPoint Inc.'s profit dropped 7.6 percent in the third quarter compared with the same period last year even though enrollments and revenues rose. The nation's largest insurer by membership and parent of Anthem Blue Cross in California earned $683.2 million in the three months that ended Sept. 30, down from $739.1 million in the year-earlier period (Helfand, 10/26).
Market Watch: WellPoint Profit Slips But Outlook Revised Higher
Health insurer WellPoint Inc. reported a 7.6 percent decline in third-quarter profit, as acquisition-related costs and growth in senior membership and other factors offset revenue growth. ... The ongoing sluggish pace in operating rooms and doctors' offices is generally helping U.S. health-insurance companies, which benefit when members rack up fewer costs. WellPoint, while benefiting from this overall trend, has recently been hit by high medical costs for seniors in certain areas, though it expects to have mitigated the issue by 2012. The managed-care provider has been diversifying beyond employer-sponsored health insurance by increasing its presence in plans that cover senior citizens in the wake of U.S. health-policy changes (Loftus, 10/26).