The Tampa-based insurer also improved its earnings per diluted share, net income margin, and Medicare revenues.
WellCare produced a total premium revenue of $4.6 billion and a GAAP net income of $151.6 million as part of a strong Q2 earnings report released Tuesday morning.
The insurer saw its GAAP earnings per diluted share rise to $3.35 in Q2 2018 from $1.65 in Q2 2017, and nearly doubled its GAAP net income margin to 3.3%. Its GAAP Medicaid health plans achieved $2.9 billion in revenues, while its adjusted Medicaid health plans posted $2.8 billion in revenues, both year-over-year improvements.
WellCare has also revised its financial guidance for the rest of 2018, estimating an adjusted earnings per diluted share in the range between $10.70 to $10.90.
"We are pleased with our second quarter 2018 results as they reflect continued strong performance across all three lines of our business," Ken Burdick, CEO of WellCare, said in a statement. "We are also pleased that we continue to advance our growth agenda through our recent Medicaid wins in Florida and our pending acquisition of Meridian Health Plans."
The Meridian deal will expand WellCare's Medicaid membership by over 500,000 patients in both Michigan and Illinois, while bolstering its Medicare Advantage membership in four midwestern states. The insurer is expected to complete the multibillion deal through a combination of cash on hand, undrawn revolving credit facility, new debt, and new equity.
Below are highlights from WellCare's Q2 earnings report:
The insurer's adjusted earnings per diluted share rose from $2.52 in Q2 2017 to $3.69 in Q2 2018.
The Medicare health plans revenues totalled $1.5 billion in Q2, an increase of $230,000 compared to this time last year.
By the end of Q2, WellCare had $514.8 million in unregulated cash and investments.
Additional information is available in WellCare's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.