For the three months ended Dec. 31, 2013, WellPoint reported total revenues of approximately $17.6 billion, up 16.3 percent from $15.2 billion in the fourth quarter of 2012. However, total expenses also increased by 16.5 percent to $17.4 billion. The company also reported a $160.7 million loss on the sale of two eyewear subsidiaries, 1-800 CONTACTS and Glasses.com, as well as higher income taxes.
Furthermore, higher utilization in advance of the Patient Protection and Affordable Care Act health plans taking effect Jan. 1 drove the insurer’s benefit expense ratio up to 87.8 percent from 87.3 percent in the fourth quarter of 2012.
For the full year of 2013, WellPoint reported $2.5 billion in net income, down 6.2 percent from $2.7 billion the previous year. Total revenue increased 16 percent to $70.2 billion in 2013, but expenses also went up by 16.6 percent to $67.2 billion.
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