BETHESDA, Md.—Managed health plan provider Coventry Health Care Inc. said Friday its first-quarter profit rose 2.7 percent, as revenue surged on increases in membership.
For the quarter ended March 31, the Coventry earned $125 million, or 81 cents per share, compared with $121.7 million, or 76 cents per share, for the same quarter in 2007.
Total operating revenue jumped 32 percent to $2.94 billion from $2.24 billion in the year-ago period.
Analysts polled by Thomson Financial expected a profit of 81 cents per share on $2.98 billion in revenue.
The company said membership in its commercial business division rose 4.9 percent to 2.91 million.
Coventry's commercial health plan's medical loss ratio, or percentage of premium dollars paid out on benefit claims, totaled 78.8 percent from 78.4 percent in the prior-year period.
Membership in its individual consumer and government business division jumped 34 percent to 1.76 billion.
Coventry said its Medicare Advantage medical loss ratio totaled 82.8 percent from 82.3 percent in the 2007 quarter.
