WellCare Health Plans, Inc. (NYSE: WCG) today reported results for the fourth quarter and year ended December 31, 2012. As determined under generally accepted accounting principles (GAAP), net income for the fourth quarter of 2012 was $48.8 million, or $1.11 per diluted share, compared with $85.1 million, or $1.96 per diluted share, for the fourth quarter of 2011. Adjusted net income for the fourth quarter of 2012 was $57.6 million, or $1.32 per diluted share, compared with $93.4 million, or $2.15 per diluted share, for the fourth quarter of 2011.
As determined under GAAP, the Company reported net income for the year 2012 of $184.7 million, or $4.22 per diluted share, compared with $264.2 million, or $6.10 per diluted share, for 2011. Adjusted net income for 2012 was $215.6 million, or $4.92 per diluted share, compared with $291.4 million, or $6.73 per diluted share, for 2011.
“As a result of our 2012 and more recent accomplishments, we are better positioned than we ever have been to deliver profitable growth over the long-term,” said Alec Cunningham, WellCare’s CEO. “We began 2013 with the most diversified portfolio of revenue and earnings streams in our history in a number of attractive markets that have sizeable government program growth prospects. We intend to continue to capitalize on those opportunities.”
Kentucky Medicaid Program Agreement
The commonwealth of Kentucky recently amended the Company’s agreement with the objective of ensuring that the Medicaid managed care program is structured to deliver quality, cost-effective care to members on a long-term, sustainable basis. As a result, effective January 1, 2013, WellCare received a premium rate increase of approximately 7.0%. Kentucky also has accelerated to July 1, 2013, the Company’s rate increase of approximately 3.0% which previously had been scheduled for October 1, 2013. These rate increases apply to all of the Kentucky Medicaid geographic regions other than Region 3. In addition, in January WellCare launched its Medicaid program in the Commonwealth’s Region 3, which includes Louisville and 15 surrounding counties.