In a nutshell, we think that the problem is a liquidity issue, as opposed to a fundamental one of weakness in the economy with limited effects on health plans.
Regarding the conversion of Horizon Blue Cross Blue Shield, we offer some commentary on the dynamics and criteria for the decision of other plans.
According to the recently released September 2008 data from the Centers for Medicare & Medicaid Services, the total enrollment for Medicare Advantage has increased to 10.2 million members up 14.1%. Medicare Special Needs Plan enrollees have increased to 1.3 million members.
Average health plan stocks decreased 9.3% for the month of September compared with 9.2% for the market as a whole. Valuation indicators decreased last month due to worsening investor sentiment.
Humana closed its acquisition of Metcare Health Plans, Inc., which was announced on June 30th. Humana also assumed 16,000 members of MD Medicare Choice, apparently precipitated by Wall Street’s travails.
Aetna announced the completion of a public offering of $500 million of its 6.50% Senior Notes. Aetna’s board of directors approved an annual dividend for 2008 of $0.04 per share.
Aetna, Inc. recently announced that Richard J. Harrington has been appointed to its Board of Directors. Centene Corporation appointed Donald G. Imholz as Senior Vice President and Chief Information Officer, effective immediately. Centene also recently announced that Sherry B. Husa has been appointed as President and Chief Executive Officer of Managed Health Services (MHS), Centene’s Wisconsin subsidiary. CIGNA Corporation announced that John M. Partridge will join its Board of Directors beginning January 26, 2009. Molina Healthcare, Inc. appointed on September 11th Lisa A. Rubino to the position of president of Molina Healthcare of California.
After the effect of buydowns, health plans are expecting a price increase of 8.0% up from 7.4% expected last year. Health benefit ratios are expected to increase by 0.4 percentage points.
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