Louisville, Ky.-based health insurer Humana announced that despite a an uptick in revenue and membership, it's net income for fiscal year ended Dec. 31, 2012 was down 13.9 percent over 2011.
The company brought in $9.56 billion in fourth-quarter revenue, up $501 million or 5.5 percent from the fourth quarter in 2011. But operating income was down 9.1 percent, partially due to a $454 million spike in benefits expenses, so the company netted $192 million in fourth quarter 2012, 3.5 percent less than last year.
Full-year comparisons were more dramatic. Although total revenue in 2012 was $39.13 billion, or 6.2 percent more than 2011, net income for last year settled at $1.22 billion, $197 million lower than 2011.
Humana acquired Medicare Advantage and Medicaid beneficiary primary care coordinator Metropolitan Health Networks based in Boca Raton, Fla., in an $850 million deal in December last year. In January 2013, Humana divested Medicare Advantage plans in Arkansas, Oklahoma and Texas to rival insurer Cigna, as stipulated by regulators as part of its acquisition of Arcadian Management Services, a California-based Medicare Advantage coordinator.
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The company brought in $9.56 billion in fourth-quarter revenue, up $501 million or 5.5 percent from the fourth quarter in 2011. But operating income was down 9.1 percent, partially due to a $454 million spike in benefits expenses, so the company netted $192 million in fourth quarter 2012, 3.5 percent less than last year.
Full-year comparisons were more dramatic. Although total revenue in 2012 was $39.13 billion, or 6.2 percent more than 2011, net income for last year settled at $1.22 billion, $197 million lower than 2011.
Humana acquired Medicare Advantage and Medicaid beneficiary primary care coordinator Metropolitan Health Networks based in Boca Raton, Fla., in an $850 million deal in December last year. In January 2013, Humana divested Medicare Advantage plans in Arkansas, Oklahoma and Texas to rival insurer Cigna, as stipulated by regulators as part of its acquisition of Arcadian Management Services, a California-based Medicare Advantage coordinator.
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