Summary Box: WellPoint’s 2Q profit climbs 4 percent, helped by lower claims, weak flu season
By APWednesday, July 28, 2010
Summary Box: WellPoint’s 2Q profit climbs 4 pct
THE RESULTS: Health insurer WellPoint reported a 4 percent rise in net income for the second quarter as its operating revenue fell 7 percent to $14.22 billion.
THE REASONS: A boost from lower-than-expected leftover claims helped counter a hit WellPoint took in California, where it delayed premium hikes after taking heavy criticism.
WHY IT MATTERS: WellPoint runs Blue Cross Blue Shield plans in 14 states and is the largest commercial health insurer based on membership. Its medical enrollment slipped 2 percent during the quarter. The declines are tied to the slumping economy, as employers cut jobs and reduced the number of people covered by their insurance. But there are signs that trend may be slowing.
