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WellCare Health Plans, Inc. (NYSE: WCG) today reported results for the third quarter ended September 30, 2011. As determined under generally accepted accounting principles (“GAAP”), net income for the third quarter of 2011 was $88.3 million, or $2.03 per diluted share, compared with $42.9 million, or $1.00 per diluted share, for the third quarter of 2010. Adjusted net income for the third quarter of 2011 was $93.2 million, or $2.15 per diluted share, compared with $37.9 million, or $0.89 per diluted share for the third quarter of 2010.
“Our top initiatives continue to deliver strong results in improving health care quality and access, our administrative and medical cost structures, and in delivering prudent, profitable growth,” said Alec Cunningham, WellCare’s chief executive officer. “As a result, we are optimistic about our opportunities for further operating and strategic progress in 2012.”
WellCare’s recent accomplishments are highlighted by the November 1 launch of the Kentucky Medicaid program upon completion of a rapid implementation timeline. The program will focus on improving health care outcomes and care coordination, promoting wellness and healthier lifestyles, and lowering the overall cost of care. Separately, the Company began providing prescription drug benefits under the New York and Ohio Medicaid programs effective October 1. Other recent accomplishments include the accreditations of WellCare’s Georgia and Missouri health plans by the National Committee for Quality Assurance. In addition, during the third quarter the Company completed an upgrade of its core operating system, which will enable further progress in improving service, productivity, and compliance.
Highlights of Operations for the Third Quarter
Adjusted net income for the third quarter of 2011 increased compared with the third quarter of 2010, primarily due to higher premium revenue, offset in part by increased selling, general, and administrative (“SG&A”) expense and increases in the Medicare Advantage and PDP segments’ medical benefits ratios (“MBRs”). In addition, favorable development of prior years’ medical benefits payable contributed to third quarter results.