The Department of Defense awarded Health Net, Inc. the third generation TRICARE Contract for the North Region. Health Netís procurement of the contract concurrently terminates the contract with Aetna, Inc., which was initially awarded the contract in July 2009.
Physicians Health Choice acquired Tampa-based Citrus Health Care. Physicians Health Choice is a subsidiary of WellMed Medical Management, primarily aimed at providing health care and medical management to Medicare-eligible members. The financial terms of the acquisition were not disclosed.
On average, stock prices for the publicly-traded health plans declined 1.6% during the month of May, with valuation indicators also decreasing. This compares with 8.2% for the market as a whole. Medicare plans fared the worst with the largest decline in stock prices, followed by Medicaid plans and then by Commercial plans.
CIGNA Corporation reported an increase of 176.9% to non-operating earnings primarily driven by its non-health lines of business. Health Net, Inc. experienced increase to net earnings on significantly improved non-operating income. Molina Healthcare, Inc.ís net income decreased, year-over-year, due to declines in nonoperating income. Triple-S Management Corporationís operating income increased on a 1.4 percentage point improvement to its health benefit ratio. WellCare Health Plans, Inc. revenues declined 24.5% due to the company exiting the PFFS market on December 31, 2009.
BlueCross BlueShield of South Carolina promoted David S. Pankauto President and Chief Executive Officer, effective August 1, 2010. Health Net, Inc. appointed Bret A. Morris as President of Health Net of Arizona. Health Net also announced Marie Montgomery as its Senior Vice President and Corporate Controller. WellCare Health Plans, Inc. named Michael L. Cotton as its President of National Health Plans.
Centene Corporationís subsidiary , Celtic Group, Inc. entered into a definitive agreement to acquire NovaSys Health, LLC an Arkansas-based Third Party Administrator. Molina Healthcare, Inc. announced that it closed its acquisition of the Health Information Management business of Unisys Corporation, based in Blue Bell, PA on May 1st.
HealthSpring, Inc.ís Board of Directors approved a repurchase program of its common shares of stock for up to $100.0 million. UnitedHealth Groupís Board of Directors approved an increase to both its dividends and its dividend payment cycle.
our bi-annual review of the financial performance of Blue Cross Blue Shield Plans. The Blues faced a difficult operating environment driven by elevated unemployment and increased utilization reflected through increased health benefit ratios. Net earnings, however, grew for the year on the significant rebound in non-operating income in 2009. Plans also faced increases in administrative expense to premium ratios.
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