Magellan Health Inc., which continues to have operations in Avon after moving its corporate headquarters to Arizona, said its third-quarter profits fell more than 40 percent because of higher costs and expenses.
Magellan booked $27.1 million in profits, or $1 per diluted share, down from $47.2 million, or $1.70 in the same quarter of 2013.
The decrease came despite higher revenue, which climbed by $49.6 million, or 5.7 percent, to $923.2 million due to contributions from Magellan’s Partners Rx and CDMI businesses.
However, costs and expenses grew by $63.9 million over the year. Magellan said it paid a higher effective tax rate because it could not deduct health insurer fees — which stems from a provision in Obamacare.
Magellan expects net revenue between $3.6 billion and $3.8 billion and net income between $63 million and $77 million for the full year.
