We provide a list of pending and completed health plan acquisitions for the past six months. Many of these business combinations are focused on Medicare and Medicaid plans.
Sherlock Company research suggests that the benefits of investments in areas of Information Systems has not led to lower costs.
On November 1, Wartertown, Massachusetts-based Tufts Health Plan completed its purchase of Medicaid plan, Network Health.
UnitedHealth Group announced it entered into an agreement to purchase XLHealth, a company with a focus on serving Medicare Advantage Special Needs.
Stock prices for the publicly-traded health plans rose 2.9%, on average, for the month of November with valuation indicators following suit. In comparison, the broader market, measured by the S&P 500, fell slightly by 0.5%. Stock price growth was nearly universal and was led by the Medicaid plans. The Medicare plans followed and then by the Commercial plans.
HealthNet, Inc. experienced a 4.9% increase in net income from lower health benefit ratios. HealthSpring, Inc. experienced a sharp increase in total membership due to its Bravo Health acquisition leading to higher earnings. Triple-S Management Corporation’s earnings were lower driven by its loss of its Reform (Puerto Rico’s Medicaid program) contract. WellCare Health Plans, Inc. reported a 16.6% increase in net earnings primarily on significantly higher Stand-Alone Medicare Part D membership.
Humana, Inc. appointed Bruce D. Broussard as President and Chief Executive Officer. HealthNet, Inc. named Scott Law as its Chief Medicare Officer.
in our bi-annual review of the financial performance of Blue Cross Blue Shield Plans, we estimate that earnings in 2011 will trend higher on increased revenues, flat health benefit ratios, and a lower administrative expense ratio. We also expect non-operating earnings to supplement earnings.
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