Advertisement
YOU ARE HERE: LAT HomeCollections

REGIONAL EARNINGS

WellPoint Health Reports Slight Dip in Earnings

November 01, 1994

WellPoint Health Networks Inc., the managed health care company spun off by Blue Cross of California last year, reported a 2% drop in earnings in the third quarter.

Net income in the quarter that ended Sept. 30 was $49.8 million, down from $51 million in the same three-month period a year earlier. Revenues in the third quarter rose 11% to $698 million from $629 million a year earlier.

For the first nine months of the year, Woodland Hills-based WellPoint reported earnings of $161 million on revenue of $2.07 billion, compared with year-earlier profit of $115 million on $1.82 billion in revenue. Financial results prior to Feb. 1, 1993, are presented as if WellPoint had been operating as a separate, stand-alone entity.

Last year, Blue Cross spun off most of its nonprofit health insurance programs into a for-profit subsidiary, WellPoint. Blue Cross retained an 80% ownership stake in WellPoint, and state regulators required Blue Cross to submit a plan by which it would compensate the public for the tax-exempt status it had enjoyed while it built its insurance business.

Blue Cross unveiled the so-called public benefit plan Sept. 15, promising to create a new public charity with assets of more than $2 billion to fund health programs throughout the state. That plan is being reviewed by state regulators.

Advertisement
Los Angeles Times Articles
|
|
|