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May 15, 2005
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MHMR May 15, 2005; Volume 13, Number 9
Aetna to buy Active Health...MO HMO profits fall 5%...Health Net under Best review...Sierra raises ’05 profit outlook...Chart: MO HMO financials...Mid-Atlantic HMO profits rise...Chart: mid-Atlantic HMOs...NE HMO profits jump 23%...Chart: NE HMO financials...Harvard Pilgrim 1Q05 net climbs...Blue Shield-CA ’04 profit rises...Health Net gets Medi-Cal pact...Molina appeals Medi-Cal award...WellPoint names regional heads...Cigna names consumerism chief...Caremark to buy more stock...HMO stocks fall 1%...1Q05 services profits rise 62%...Chart: 1Q05 services financials...Magellan shares to be offered...Services stocks fall 0.1%...and more...
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AETNA TO PAY BIG FOR ACTIVE HEALTH
Aetna Inc. (Hartford, CT) has agreed to shell out $400 million in cash to acquire privately held Active Health Management (New York), a six-year-old provider of clinical-support tools promoting use of evidence-based medicine for physicians and health plan members.
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MO HMO PROFITS FALL 5%
Missouri HMOs saw net income decline 5% to $202.647 million through nine months of 2004, compared to the same period a year earlier, according to an MHMR tally of state insurance department data for 19 top plans.
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HEALTH NET UNDER BEST REVIEW
A.M. Best & Co. (Oldwick, NJ) has placed the “bb” debt rating of Health Net (Woodland Hills, CA)—as well as the financial strength ratings of the company’s HMO and life insurance subsidiaries—under review with “negative implications.”
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SIERRA RAISES ’05 PROFIT OUTLOOK
Sierra Health Services (Las Vegas) increased its 2005 earnings outlook to between $3.50 and $3.60 per share ($119 million to $123 million based on 34.125 million diluted shares), compared to earlier projections of $3.35 to $3.45.
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MANAGED CARE SERVICES PROFITS SOAR 62% IN 1Q05
Driven by solid performance in the pharmacy benefit management sector, profits among publicly traded managed care services companies soared 62% in the first quarter of 2005 to $483.453 million on revenues of $23.281 billion, up 5%, according to an MHMR tally of financial results from 13 companies.
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MAGELLAN SHAREHOLDERS TO OFFER 4.25 MM SHARES
Magellan Health Services (Farmington, CT) announced that two of its shareholders will publicly offer 4.25 million shares of previously registered common stock, with all proceeds from the sale going to the selling shareholders.
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TOP VA, DE, DC HMOs BOOST NET 32%
Net income among 13 top HMOs in Maryland, Virginia and Washington, DC rose 32% to $299.422 million through the first nine months of 2004, compared to the same period a year earlier, according to a MHMR tally of state insurance department data.
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NE HMO NET RISES 23% THROUGH 9 MONTHS 2004
Nebraska HMOs posted a 23% increase in net income to $44.04 million through nine months of 2004, compared to the same period a year earlier, according to an MHMR tally of state insurance department data for four top plans.
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BLUE SHIELD-CA REPORTS 6% GAIN IN ‘04 NET INCOME
Blue Shield of California (San Francisco) had 2004 net income of $334 million, up 6% from the same period a year earlier, on revenues of $6.9 billion, up 11%, according to the company’s newly released annual report.
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HEALTH NET GETS NEW L.A. MEDICAID CONTRACT
Health Net (Woodland Hills, CA), which has since 1985 provided Medicaid benefits in Los Angeles through California’s Medi-Cal program, has won a new contract to continue to serve some 500,000 lives in the market for up to eight years generating an estimated $560 million annually in revenues.
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MOLINA APPEALS CA MEDICAID CONTRACT AWARDS
Molina Healthcare (Long Beach, CA) has appealed a California state decision to disqualify its bid to continue to serve 100,000 Medicaid lives in Riverside and San Bernardino counties.
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WELLPOINT NAMES HEADS OF KY, IN, OH UNITS
WellPoint (Indianapolis) has promoted Chuck Slater to president of the company’s Anthem Blue Cross Blue Shield of Ohio unit; he was most recently the unit’s vice president and general manager.
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CIGNA NAMES SHOWALTER VP, CONSUMERISM
Cigna HealthCare, the healthcare unit of Cigna Corp. (Philadelphia), has named Michael Showalter vice president of consumerism in charge of consumer-driven healthcare product development and management, including the company’s HRA and HSA-compatible ChoiceFund product. He was most recently with UnitedHealth Group and Definity Health.
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