Boston, MA 05/14/2014 (wallstreetpr) – ObamaCare premium proposals submitted on Monday for 2015 in two states reveals that the big insurers like WellPoint Inc (NYSE:WLP), CareFirst Blue Choice are seeking steeper premium hikes.
Premium Hike A Bigger Possibility
According to the reports, where Molina Healthcare (MOH) proposes to cut premium by 6.8% and Kaiser Foundation Health Plan seeks a 0.6% hike, big ObamaCare operators WellPoint and CareFirst Blue Choice have proposed to raise premium rates by as much as 8.5% and 14.9% respectively. The average weighted proposed rates indicate a premium hike of 8.8%. While the data published in the states of Washington and Virginia are incomplete, but overall gives an insight of the likely hike in the premium rates.
Families and individuals, who are eligible for ObamaCare subsidies will find less difference in their premium payments, compared to those who are non-qualified for the subsidies. While the Congressional Budget predicts the increase in unsubsidized enrollees from 1 million to 3 million by 2015, the premium rate hikes could hurt those predictions. However, the option to enroll or not would also weigh higher premiums against individual tax liability.
Better Results
Earlier this month, WellPoint Inc (NYSE:WLP) had released a healthy first quarter results, where the company posted an earnings surprise of 8.5%. During the period, WellPoint’s top line grew 1.2% year-over-year, driven by higher membership in the commercial self funded, Medicaid and FEB segments. The company also recorded increased enrollment driven by ObamaCare, which boosted it revenue and cash flow during the quarter. In the reported quarter, WellPoint posted a profit of $701 million, that is $2.40 a share, which came below $885.2 million, or $2.89 a share last year. The per-share earnings, excluding items, fell to $2.30 from $ 2.94.
For the current year, WellPoint Inc (NYSE:WLP) raised its earnings per share outlook to $8.40 per share and revenue to $73.5 billion, higher than the earlier projection of $8.20 per share and $73 million in EPS and revenue respectively.
