WellCare Health Plans, a Tampa, Fla.-based Medicaid and Medicare managed care plan, reported an 18 percent dip in net income in the second quarter of fiscal year 2017.
The payer posted net income of $74.1 million in the three months ended June 30, down from $90.8 million in the same period the year prior. WellCare attributed the drop to a $26.1 million pretax loss on early redemption of $900 million in senior notes and a one-time $25.6 million expense related to its acquisition of White Plains, N.Y.-based Universal American.
However, the payer achieved revenues of $4.3 billion in the second quarter of 2017, compared to $3.6 billion in the same period a year prior.
"We produced substantial year-over-year premium growth in the second quarter, coupled with strong margins," said WellCare CEO Ken Burdick. "All three lines of business contributed to year-over-year revenue growth through a combination of organic growth and acquisitions." Premium growth reflected the company's acquisition of Universal American and Care1st Arizona, which closed at the beginning of this year.
At the same time, WellCare saw expenses rise. The payer reported expenses of $4.2 billion in the second quarter of this year, up from $3.4 billion in the second quarter of 2016.