9 million, or $1 per Canada Goose online share, in the three
WellCare’s profit soars as enrollments jump
(Adds details, analysts comment)
Feb 7 canadagoosejacketsaleca (Reuters) WellCare Health Plans Inc quarterly profit more than tripled, handily beating analysts estimates, driven by strong growth in Canada Goose sale enrolments in its Medicaid plans and lower costs in its Medicare business.
Like other buy canada goose jacket health insurers focused on government sponsored plans for the canada goose clearance underinsured or uninsured, WellCare has been benefiting from canada goose the expansion of the Medicaid program under the Affordable Care Act (ACA), popularly known as Obamacare.
But, such insurers canada goose coats have come under pressure following attempts by the Republicans to canada goose canada goose outlet coats on sale repeal and replace the act.
WellCare, which got two thirds of its revenue from Medicaid plans in 2016, said membership in the business increased by 156,000 in the fourth quarter ended Dec. 31.
The additions were mainly due to the company acquisition of Care1st Arizona.
However, the amount WellCare spent on medical claims out of the premiums it earned, a key measure of costs known canadian goose jacket as medical benefits ratio (MBR), canada goose clearance sale rose in the Medicaid business.
The metric increased to 87.2 percent from 86.3 percent in the business.
The company MBR fell to 85.8 percent from 88.7 percent in Medicare and to 58.9 percent from 67.3 percent in the Medicare Prescription cheap Canada Goose Drug canada goose outlet toronto factory Plans canada goose store businesses. Both were well below analysts estimates.
The improvement in the Medicare Prescription Drug Plans was due to lower Canada Goose Parka drug prices under a renegotiated CVS contract, Piper Jaffray Co analyst Sarah James wrote Canada Goose Online in a client note.
WellCare has been bolstering its Medicare Advantage business, as insurers look to offset Canada Goose Jackets any likely hit from a possible repeal and canada goose replica replace of Obamacare.
The company in November agreed to buy smaller rival Universal American Corp canada goose black friday sale for about $600 million, in Canada Goose Outlet a deal that will add Medicare Advantage canada goose deals members in Texas and New York.
Enrollment in Medicare Advantage plans rose about 7 percent in the United States last year.
WellCare net income rose to $44.9 million, or $1 per Canada Goose online share, in the three months ended Dec. 31, from $13.0 million, or 29 cents canada goose outlet store locations per share, a year earlier.
Analyst on average had expected adjusted earnings of 52 cents buy canada goose jacket cheap per share Canada Goose Coats On Sale and revenue of $3.56 billion, according to Thomson Reuters 2018 canada goose outlet I/B/E/S. (Reporting by Divya Grover in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila).