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November 15, 2005
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MHMR Nov. 15, 2005; Volume 13, Number 19
Part D premium strategies...United has 1MM+ Part D lives...Will ’06 drug cost trend rise?...Chart: Part D premium rates...MVP names Brubaker EVP...Amerigroup CFO departs...Cigna taps Earl...Health Net raises ’06 outlook...UAHC post fiscal 1Q06 profit...GA HMO net sinks in ’04...Chart: GA HMOs...NJ HMO net rises 6% in ’04...Chart: NJ HMOs...Sierra wins NV Medicaid pact...PacifiCare sales approved...MCO stocks rise 5%...Services stocks rise 3%...and more...
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WHICH PART D PREMIUM STRATEGY WINS?
Now that Medicare Part D prescription drug plans have begun signing up members, the question is which premium strategy will ultimately win—low premiums to attract consumers and perhaps even drive gains in Medicare Advantage membership or higher premiums to assure actuarial soundness of the plans.
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UNITEDHEALTH CLAIMS 1 MM+ PART D LIVES
UnitedHealth Group (Minnetonka, MN) announced that already more than 1 million Medicare beneficiaries were committed to participate in the company’s Part D drug plans, including a plan endorsed by the AARP (MHMR, Sept 30).
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WILL ’06 DRUG COST TREND SEE UPTICK
Preliminary figures for leading Blue Cross Blue Shield plans suggest an uptick in 2006 per member per month in drugs cost trends, according to MHMR’s annual survey, driven in part by increased utilization and specialty pharmaceuticals.
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MVP NAMES BRUBAKER EVP, COMBS CFO
MVP Health Care (Schenectady, NY), which is merging with Preferred Care (Rochester, NY), announced that Lisa Brubaker will hold the newly created position of executive vice president, Rochester and government programs upon completion of the merger of the two not-for-profit companies; she is currently Preferred Care’s senior vice president and chief operating officer.
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HEALTH NET RAISES 2006 EARNINGS PROJECTION
Health Net (Woodland Hills, CA) said it expects 2006 earnings per share in the range of $2.90 to $3.10 ($337.9 million to $361.2 million based on 116.5 million diluted shares). The estimate includes expected costs of $0.10 to $0.12 per share for expensing stock options.
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GA HMO NET INCOME SINKS 13.7% IN 2004
Georgia HMOs reported 2004 net income of $71.2 million, down 13.7%, on revenues of $3.051 billion, up 4.3%, according to an MHMR tally of state insurance department data.
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NJ HMO NET INCOME INCREASES 5.5% IN 2004
New Jersey HMOs reported a 5.5% increase in 2004 net income to $205 million on revenues of $7.75 billion, up 9%, according to an MHMR tally of state insurance department data.
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SIERRA WINS NV MEDICAID CONTRACT
Sierra Health Services (Las Vegas, NV) received notice from the Nevada Division of Healthcare Finance that it would be awarded a two-year contract effective July 1, 2006 to serve Medicaid members in the state, pending negotiation of final contract terms.
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EXPRESS SCRIPTS RAISES ’06 OUTLOOK
Citing strength in its core business, Express Scripts (St. Louis) said it expects 2006 earnings per share of $3.10 to $3.22 ($461.9 million to $480 million based on 149 million shares outstanding).
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