Triple-S Management Corporation, a managed care company in Puerto Rico, announced Wednesday consolidated revenues of $592 million and consolidated operating income of $22.7 million for the three months ended March 31, 2013.
Net income was $17.2 million, or $0.61 per diluted share.
“We are pleased with our overall performance, and more specifically, that the measures implemented last year in the Medicare Advantage (MA) business are beginning to have a positive impact in the first quarter of 2013,” said Ramón M. Ruiz-Comas, Triple-S CEO.
Triple-S Management operates in three segments: 1) managed care, 2) life insurance, and 3) property and casualty insurance.
Managed care membership decreased by 1.7 percent year over year, reflecting lower enrollment across all sectors. Medicare membership decreased 5.2 percent year over year, to 113,821, while fully insured commercial membership and Medicaid ASO enrollment decreased 4.8 percent and 0.2 percent year over year, respectively.
At 83.1 percent, the Medicare MLR reflects an improvement of 790 basis points, resulting from lower cost and utilization trends and favorable prior-period reserve developments. The 100-basis-point improvement in the commercial MLR is due to favorable prior-period reserve developments.
“Of particular note is the substantial improvement in the Managed Care MLR, which fell by 480 basis points year over year, and with reductions in the three segments, Commercial, MA and stand-alone PDP,” he said.
“While we generated better-than-anticipated earnings in the period, as we are only one quarter into the year, we have elected to maintain our full-year guidance. We believe that this posture is prudent until we have additional data further into 2013 on utilization and other trends in our MA and commercial businesses, and feel confident that the improvement in overall performance is sustainable,” Ruiz-Comas said.
“Moreover, with Easter coming early this year, it is possible that we could see some member utilization shift into the second quarter since doctor visits and procedures are often postponed during holiday periods,” he noted.
Triple-S reported a 0.5 percent increase in consolidated premiums to $550 million during the first quarter.