Cigna, Molina report strong earnings
Cigna reported strong growth in the third quarter of 2013, with both its revenue and membership increasing. Molina Healthcare also saw its profits and revenues increase, though its expenses did too.
Cigna's net income increased 19 percent to $553 million, up from $466 million in last year's third quarter, according to its earnings report released today. Revenue totaled $8.1 billion, an increase from $7.3 billion last year.
The insurer noted its membership increased to 13.8 million people in its commercial business and almost 490,000 in its Medicare and Medicaid business.
"I am confident we will achieve our increased full year outlook for 2013 and carry this momentum into 2014," Cigna CEO David Cordani told analysts on a conference call, Forbes reported. "In 2014, we expect consolidated revenue and earnings growth over our increased 2013 outlook."
Meanwhile, Molina Healthcare reported its third-quarter earnings with an increase in both profits and revenues. Its profits grew to $7.57 million, up from $3.36 million the year before. And total revenues increased 9 percent to almost $1.7 billion, compared with last year's $1.5 billion, according to its earnings report released Wednesday.
But Molina's general and administrative expenses rose about 30 percent year over year to 10.4 percent of revenue in the third quarter because of higher costs incurred to comply with the healthcare reform law.
WellPoint reported $2.3 billion in net income for this year's third quarter, up from $2.2 billion in 2012, and $53 billion in revenue, an increase from $46 billion last year, FierceHealthPayer previously reported. Although it lost members in its commercial plans, WellPoint's government plans ended the quarter with for 35.6 million total members, an increase of more than 2 million year over year.
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