Dive Brief:
- Fourth-quarter net income at health plan WellPoint fell drastically over the same quarter in 2012, down 68%, from $464.2 million in 2012 to $148.2 million in 2013.
- WellPoint reported total revenues of about $17.6 billion for the three months ending Dec. 31, 2013, up 16.3% from the fourth quarter of 2012. But total expenses grew by 16.5%, outpacing revenues.
- The payer also reported a $160.7 million loss on the sale of two eyeware subsidiaries, 1-800 CONTACTS and Glasses.com.
Dive Insight:
If WellPoint is already struggling now, one has to wonder what will happen as it copes with the impact of the currently unpredictable ACA enrollment. But it seems that Wall Street is pretty sanguine about Well Point's prospects; in fact, on the 29th the stock closed up $1.07, and has stayed in the $80-odd price range. Seems the boys on the Street may know something we don't.