CMS released its Medicare Advantage capitation rate increases for calendar year 2010. On average capitation for Medicare Advantage plans will increase 0.81%.
Announced on April 13th, Express Scripts has entered into an agreement to acquire WellPoint’s NextRx subsidiaries for $4.7 billion.
The Wall Street Journal notes that large national health plans have had a significant decline in their membership in the past quarter. We believe that these health plans can be expected to change their employment in response.
On average, health plan stock prices grew 11.0% for the month. Twelve of the fourteen of the health plans had increases in stock prices. Valuation indicators grew for the month of April.
Ten of the fourteen publicly-traded health plans announced earnings last month. Aetna’s Medicaid premiums increased 46.6% year-over-year, due to membership gains. Centene Corporation reported a 22.9% decrease in net income, primarily from a decline in nonoperating income. CIGNA experienced a 12.9% increase in net income, year over year, despite non-operating losses. Coventry Health Care’s total membership dropped 2.4% despite gains in its Medicare Advantage membership. HealthSpring experienced losses to net income despite growth in total membership. Humana, Inc. experienced growth to net income in part to improvement in its health benefit ratios. Molina Healthcare reported a decrease of 9.4% in net income due to investment losses. UnitedHealth Group reported a 5.3% increase in operating income mainly attributed to a growth in revenues. Universal American Corporation experienced a 21.3% loss to net income primarily from a decline in non-operating income. WellPoint, Inc. reported a loss of 1.3% in net income mainly attributed to large losses in investment income and a decline in fully-insured membership.
Blue Cross and Blue Shield of Louisiana announced Mike Reitz as the company’s new President and Chief Executive Officer. Humana appoints Raja Rajamannar as Senior Vice President and Chief Innovation and Marketing Officer.
This is our look at the cost to shareholders of stock-based incentives granted to company management. We estimate the impact Stock-Based Compensation on historical net earnings and shareholder dilution.
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