UnitedHealth Group’s subsidiary, AmeriChoice, recently announced that it had entered into a definitive agreement with Unison Health Plans. The business combination may add nearly $1 billion to UnitedHealth’s Medicaid business.
The California Department of Insurance (CDI) and the Department of Managed Health Care (DMHC) announced that they are seeking up to $1.33 billion in fines for claims handling violations against UnitedHealth Group’s California-based subsidiary, PacifiCare.
On average health plan stock prices fell 4.3% for the month. Notwithstanding, health plans outperformed the market as a whole, which declined by 6.1%. Nine of the fourteen health plans had decreases in stock prices. All of the valuation indicators decreased for the month of January.
Two of the fourteen publicly-traded health plans announced earnings last month. UnitedHealth Group reported an increase in earnings per share for the year of 18.0%, driven by an increase in revenues and improved margins. WellPoint, Inc. reported a growth in net income of 8.1% as a result of a 7.1% increase in revenues and a steady net margin.
Blue Cross and Blue
Shield of Minnesota announced on January 2nd
that Michael Morrow has been appointed Chief
Financial Officer and Mark Hudson, Chief
Financial Officer of UCare Minnesota, has been
promoted to Chief Accounting Officer. Molina
Healthcare, Inc. recently named Jesse Thomas
as the president of Molina’s Michigan
subsidiary, Molina Healthcare of Michigan.
Kathie Mancini was appointed to Thomas’
previous position as Chief Operating Officer of Molina Healthcare of Ohio. On January 25th,
WellCare Health Plans, Inc. announced
effective immediately that Charles Berg has
been appointed to Executive Chairman and
Heath Schiesser to President and Chief
Executive Officer. In addition Todd Farha,
Chairman of the Board, Chief Executive Officer
and President, Paul Behrens, Chief Financial
Officer, and Thaddeus Bereday, General
Counsel had resigned. WellPoint, Inc.
appointed Brian A. Sassi to President and Chief Executive Officer of the Consumer Business
Unit, replacing Joan Herman, who is retiring.
Leslie Margolin also will join WellPoint with the
role of President and General Manager of Blue
Cross of California.
UnitedHealthcare, a subsidiary of UnitedHealth Group, and Fiserv, Inc. have completed the $775 million sale of most of Fiserv’s healthrelated business to UnitedHealthcare.
In this month’s analysis, we profile
firms that provide outsourcing services to
health plans. Such firms promise to offer the
advantages of scale while preserving their
autonomy. Firms, services and contacts are
provided.
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