Triple-S Management Corp. announced Tuesday net income of $4.7 million for the third quarter ended Sept. 30, reflecting a 75 percent drop from last year’s third quarter net income of $18.6 million
Meanwhile, consolidated revenue for the quarter totaled $567.2 million. Pro-forma net income was $8.5 million, or 31 cents per diluted share, compared with $5.9 million or $0.22 per diluted share, an increase of over 40 percent year-over-year.
“We are pleased with our consolidated third-quarter results, achieving a reduction in the MLR in the Commercial sector, a continued sequential decrease in our administrative expenses and improved margins in the Life Insurance and Property and Casualty segments,” said Ramon Ruiz-Comas, president of Triple-S Management Corp.
“The Managed Care segment was adversely affected by higher pharmacy costs and the Medicare sector experienced reduced premiums stemming from lower risk scores,” he said. “We also saw our CMS Star ratings rise to 3.0 across all plans that will be offered in 2015. Notably we have a very competitive product offering as we enter the all-important open-enrollment season.”
Last month, the company was selected to provide healthcare services for the government’s health insurance program, covering the metro north and west regions. The contract, which will be administered on an at-risk basis, runs for a 27-month term, starting April 1, 2015.
This program serves more than 1.4 million members in eight regions across Puerto Rico, with 428,000 members in these two regions.
“We are extremely pleased to have once again been chosen by the Puerto Rican government to participate in this vitally important health care program, leveraging our nearly two decades of familiarity with this patient population. Our experience shows that we can deliver high-quality, cost-effective care through our well-established provider network,” he said.
During the third quarter, the company’s managed care membership increased by 27.2 percent year-over-year, reflecting the addition of the three new Medicaid ASO regions effective Oct. 1, 2013. Medicaid membership — all self-funded — rose 58 percent, to more than 1.4 million.
Medicare membership was up 4.9 percent year-over-year, to 120,367, driven primarily by the acquisition of a PDP portfolio. Fully insured and self-insured commercial membership declined by 11 percent and 8.5 percent, respectively.
Meanwhile, Triple-S announced its board has authorized a $50 million common stock repurchase program, which the company intends to begin in the coming days.