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Recent News from PULSE, April 2007


UnitedHealth Group and Sierra Health Services Announce Merger.

Sierra Health Services, Inc. and UnitedHealth Group announced on March 12, 2007 that they have signed a definitive merger agreement in which United will acquire all outstanding shares of Sierra for $43.50 per share in cash.


Independence Blue Cross and Highmark to Announce Merger.

The board of directors of Highmark, Inc. and Independence Blue Cross announced on March 28, 2007 that they have approved an agreement to combine the two companies.


Possible Acquisition of La Cruz Azul by Triple-S.

Triple-S Management Corp., Puerto Rico’s largest health insurance company, is reportedly in talks to acquire Independence Blue Cross’s majority stake in La Cruz Azul.


Growth in Medicare Advantage Enrollment.

According to new data from the Centers for Medicare and Medicaid Services (CMS), there has been an increase of 11.2% in Medicare Advantage enrollment from August 2006 to March 2007.


Just So Long as They Spell Our Name Right.

While we are flattered that the Edwards presidential campaign would cite our research, we respectfully submit that it has been misunderstood.


Capital Cost Comments

On average health plan stock prices gained 0.6% for the month. Eight of the thirteen health plans had increases in stock prices. Valuation indicators were generally positive for the month of March.


Earnings Calendar

Features upcoming earning announcements as of April 02, 2007.


Insert.Investment Policy for Public Health Plans.

Health plans manage their investment portfolio to supplement operating earnings and maintain a financial cushion in the event of insolvency. In this month’s insert we look at the composition of public health plans portfolios and what operating characteristics drive investment decisions.


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