Profits soar at Universal American in 4Q
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- February
- 18
Profits more than doubled at Universal American Corp. during the fourth quarter as the Rye Brook-based health insurer benefited from enrollment gains in its Medicare health insurance plans and expansion in new markets.
Net income totaled $63.9 million, or 75 cents per share, during the quarter, up from net income of $30.3 million, or 33 cents a share, a year earlier. Revenues increased 12.9 percent to $1.1 billion.
A key part of Universal American’s growth has been its Medicare Part D business thart is covered under the federal government program that provides prescription drug benefits for senior citizens.
Another business, the company’s Medicare Advantage HMO health plans, posted an 18.6 percent growth in membership last year to 54,300 people. Membeship more than doubled in Oklahoma, Wisconsin, and Dallas, markets that the company has targeted for expansion.
Chief Executive Officer Richard Barasch said that 2008 was a challenging year for Universal American.
“Nevertheless, our core businesses, Medicare Advantage and Part D, posted record results in membership, revenues and earnings, and we believe that we are building the appropriate foundation to prosper in the new legislative and regulatory environment,” Barasch said in a written statement.
The company has not escaped fallout from the global financial crisis. The company disclosed last year that it had been hurt by exposure to troubled subprime mortgage investments and Lehman Brothers, the Manhattan-based investment bank that filed for bankruptcy in September. During the fourth quarter, Universal American reported realized investment losses of $3.4 million.
This entry was posted
on Wednesday, February 18th, 2009 at 3:04 pm by Jay Loomis.
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Category: Earnings
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