On average, health plan stock prices increased 10.3% compared with 8.5% for the market as a whole. All fourteen health plans experienced increases in stock price for the month of March, as well as valuation indicators.
Centene Corporation closed its acquisition with AMERIGROUP Community Care of South Carolina, a wholly owned subsidiary of AMERIGROUP Corporation, effective March 1, 2009.
Two of the fourteen publicly-traded health plans released earnings last month. Triple-S Management Corporation experienced revenue growth of 18.3% as a result of a 52.9% increase in its Medicare Advantage membership. WellCare Health Plans, Inc. experienced a higher health benefit ratio, which caused operating income in the fourth quarter to decline 50.0%, from $104.9 million to $54.5 million.
Announced March 12th, Centene Corporation’s subsidiary Celtic Group, Inc. will manage health care services for the Massachusetts Commonwealth Care program aimed at low-income adults. Health Net, Inc. will continue to provide health care services to the Veterans Affairs Community-Based Outpatient Clinic in Durango, Colorado as the company was re-awarded the contract through February 28, 2010. Highmark Blue Cross Blue Shield opened Pennsylvania’s first two health insurance retail stores in Pittsburgh, PA and Mechanicsburg, PA. Humana, Inc.’s ChoicePPO Medicare Advantage members will now be eligible to receive benefits from Straub Clinic & Hospital and Kapi’olani Medical Center at Pali Momi of Hawaii Pacific Health under a new agreement.
Blue Cross Blue Shield Association appointed Tom Bowser, President and Chief Executive Officer of Blue Cross Blue Shield of Kansas City as Chairman. Blue Cross Blue Shield of Vermont named Don George as President and Chief Executive Officer. CIGNA, Inc. appointed Robert Hughes to Financial Officer of its HealthCare division, announced March 25th. Molina Healthcare, Inc. announced the appointment of Joanne Volovar to President of its subsidiary, Molina Healthcare of Missouri, effective March 16th. Mountain State Blue Cross Blue Shield’s President and Chief Executive Officer, Gregory K. Smith will step down on July 1st and become the company’s non-executive Chairman of the Board of Directors.
Features dates of upcoming earnings announcements that we are aware of.
Health plans manage their investment portfolio to supplement operating earnings and maintain a financial cushion in the event of insolvency. This year, however, portfolio management was especially challenging as a result of deteriorating securities markets and unfavorable interest rate changes. In this month’s insert we look at the composition of public health plans’ portfolios and the operating characteristics that drive investment decisions.
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