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February 15, 2004
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MHMR February 15, 2004; Volume 12, Number 3
Cigna to cut 3000 jobs...Health Net contracting woes...PacifiCare eyes M+C gains...4Q MCO net rises 86%...SPECIAL REPORT: Tampa Managed Care...Tampa employers offer mixed bag: Teco, BayCare, State of FL, Pinellas Co., Hillsborough Co., City of St. Pete, City of Tampa, Bealls, Pinellas Co. School System, School District of Hillsborough Co....Tampa MCOs stress open access: BCBS-FL, Aetna, Humana, United, AvMed...FL HMO profits improve...Horizon to rebate $50 million...Glasscock on underwriting cycle...UnitedHealth buys MAMSI...HealthMarket has ’03 ‘hiccup’...HMO stocks fall 1%...Services stocks up 5%...Medco won’t talk settlement...Assurance IPO raises $1.7 BB...PBM financials: Medco, CMX...and more...
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ASSURANCE IPO RAISES $1.68 BILLION IN NET PROCEEDS
Fortis (Brussels, Belgium; Utrecht, Netherlands) raised net proceeds of $1.68 billion in an initial public offering of 80 million shares of Assurant Inc. common stock at $22 per share, the top end of its asking price range (MHMR, Sept. 30, 2003).
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MEDCO WON’T TALK DOJ SETTLEMENT, SNOW SAYS
David Snow, chief executive of Medco Health Solutions (Franklin Lakes, NJ), said that it would be wrong to talk about settling a five-year-old U.S. Justice Dept. investigation into the rebate practices of pharmacy benefit management companies.
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4Q PBM FINANCIALS: MEDCO, CAREMARK
Medco Health Solutions (Franklin Lakes, NJ) processed 137.7 million prescription drug claims in the fourth-quarter of 2003, flat company to the same period a year earlier.
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’03 U.S HEALTHCARE EXPENDITURES ROSE 7.8%, CMS SAYS
U.S. healthcare expenditures rose an estimated 7.8% to $1.674 trillion in 2003, according to preliminary figures from the Centers for Medicare & Medicaid Services (Washington), the first time in six years that the rate of increase in spending slowed.
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UNITEDHEALTH COMPLETES MAMSI ACQUISITION
UnitedHealth Group (Minnetonka, MN) has completed the acquisition of Mid Atlantic Medical Services Inc. (Rockville, MD) for $3 billion (MHMR, Oct. 31, 2003). MAMSI shareholders received $18 in cash and 0.82 shares of UnitedHealth stock for each MAMSI share.
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HORIZON TO REBATE $50 MILLION TO CERTAIN CLIENTS
Horizon Blue Cross Blue Shield of New Jersey (Newark, NJ) said it will rebate $50 million to small group, Medigap and individual policyholders, reflecting lower than expected healthcare costs in 2003.
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TAMPA HMOs STRESS OPEN-ACCESS, COST-SHARING
Following a national trend, managed care plans in Tampa, FL, are stressing a wide variety of open-access health plans and cost-sharing options to meet employer demands for reduced cost.
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TAMPA EMPLOYERS OFFER MIXED BAG OF PLANS, OPTIONS
The solution to the puzzle of providing comprehensive employee health benefits while containing costs comes in many forms in the Tampa Bay, FL, area, according to an MHMR roundup of 10 major employers.
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4Q MCO NET INCOME RISES 86%
Fourth-quarter net income at 15 publicly traded managed care organizations rose 86% to $1.605 billion on revenues of $35.914 billion, up 8%.
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PACIFICARE EYES 7.5-8% M+C MEMBER GAIN
PacifiCare Health Systems (Cypress, CA) expects Medicare+Choice membership to increase 7.5% to 8% in 2004, as higher reimbursements allow the company to offer a more competitive product.
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HEALTH NET HURT BY NJ CONTRACTING WOES
Health Net (Woodland Hills, CA) saw its stock price plummet 11% last week after the company announced that it had miscalculated the impact of cost increases from New Jersey hospitals.
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CIGNA TO CUT 3000 JOBS, INVESTORS FLEE
Despite announcing an additional 3000 job cuts and gains in fourth-quarter profitability, Cigna Corp. (Philadelphia) suffered a 9% decline in its stock price last week as investors remain skeptical about the company’s long-term prospects.
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