Amerigroup’s profits surge
- October 29, 2010
Profits for public health-care provider Amerigroup Corp. nearly quadrupled in the third quarter of 2010 due to an expanded membership and lower medical costs.
Net income for the third quarter was $84.3 million, up from $22.5 million in the third quarter of 2009. Premium revenue grew 14.7 percent to $1.5 billion in the third quarter of 2010, compared to $1.3 billion in the third quarter of 2009. Amerigroup’s membership increased 1.5 percent compared to the second quarter of 2010 to 1.9 million members, an 8.7 percent increase from the third quarter of 2009.
The Virginia Beach-based company reported $1.5 billion in third-quarter revenues, up 14.6 percent from last year’s third quarter.
Diluted net income per share increased to $1.68 a share, from 43 cents a year ago.
The company’s health benefits expense fell to 80.5 percent of premium revenue for the third quarter of 2010 verses 87.5 percent in the third quarter of 2009.