Tuesday, March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act. We briefly summarize the associated CBO study.
The health care reform law contains provisions that set minimum health benefit ratios for health plans and require rebates to enrollees if the thresholds are not met. Administrative expense control is incentivized.
We performed analyses on the possible economies of scale for relatively small health plans in all universes participating in the Sherlock Expense Evaluation Report. Our expectations were that economies of scale would be more evident at smaller scale. The limited scalability, however, was similar to our study found in the September 2009 edition of PULSE.
Centene Corporation announced that its subsidiary, Absolute Total Care, has entered into a definitive agreement to purchase Carolina Crescent Health Plan. The terms of the transaction were not disclosed. The transaction is expected to close in the 3rd Quarter of 2010.
Stock prices for the publicly-traded health plans increased 9.5%, on average, in March, while valuation indicators followed a similar trend. Medicaid plans experienced the largest improvement in stock prices followed by Commercial plans and Medicare plans.
Triple-S Management Corporation was the only publicly-traded plan to release earnings for the month of March. The company reported a significant increase to net income on improvements in operating earnings and its non-health segments.
AMERIGROUP Corporation announced it has completed its acquisition of Centene Corporation’s New Jersey Medicaid assets on March 1st. Blue Care Network and Sparrow Health System announced on March 5th that the two companies have ended its acquisition agreement for Physicians Health Plan of Mid-Michigan.
BlueCross of Idaho named Bruce Croffy as its Senior Vice President and Chief Medical Officer. Blue Cross Blue Shield of Massachusetts appointed William Van Faasen as its interim Chief Executive Officer. Blue Cross Blue Shield of Minnesota named Pamela Sedmak as its Senior Vice President and Chief Financial Officer. WellCare Health Plans, Inc. announced Blair W. Todt as its Senior Vice President and Chief Compliance Officer..
CIGNA Corporation’s Board of Directors authorized its 2010 annual dividend of $0.04 per share. Health Net, Inc. announced its Board of Directors approved a new $300.0 million share repurchase program.
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. Plans investment earnings were mixed as five of the eleven plans in this survey reported increases from the prior year. In this month’s insert we look at the composition of public health plans’ portfolios and the operating characteristics that drive investment decisions.
Adobe Acrobat Reader is required to view all of Sherlock Company's publications online. The program can be downloaded, free of charge at www.adobe.com.
Home | SEER Forums | Analyses | Site Index | Tools | Contact Us
© 1997-2012 Sherlock Company. All Rights Reserved. Legal Information