WellCare Health Plans, Inc. (NYSE: WCG) today reported results for the second quarter ended June 30, 2011. As determined under generally accepted accounting principles (“GAAP”), net income for the second quarter of 2011 was $69.6 million, or $1.61 per diluted share, compared with a net loss of $128.9 million, or $3.05 per diluted share, for the second quarter of 2010. The 2010 second quarter net loss arose principally due to $256.5 million of pre-tax charges associated with the previously disclosed government investigations and related litigation. Adjusted net income for the second quarter of 2011 was $76.7 million, or $1.77 per diluted share, compared with $38.6 million, or $0.90 per diluted share for the second quarter of 2010.
“These results, as well as our outlook, highlight the progress we have made on WellCare’s top priorities and in particular demonstrate our focus on delivering prudent, profitable growth,” said Alec Cunningham, WellCare’s chief executive officer. “We will continue to strengthen the alignment of our capabilities with the needs of our government customers, members, and business partners to help ensure we sustain and build on this momentum.”
WellCare’s recent accomplishments are highlighted by second quarter membership growth of 9% year-over-year, which was driven by the Medicare Prescription Drug Plans (“PDP”) and Medicare Advantage segments. In early July, the Kentucky Cabinet for Health and Family Services selected WellCare of Kentucky to serve the state’s new Medicaid program, which is expected to commence in October 2011. On August 1, 2011, WellCare entered into a new $300 million senior secured credit facility which provides liquidity to support growth, as well as additional flexibility in the management of the Company’s capital structure. WellCare also has continued to achieve progress on its health care quality and access initiatives with the recent accreditation of its Missouri plan by the National Committee for Quality Assurance and with broad-based improvement in Healthcare Effectiveness Data and Information Set results across the Company’s lines of business.