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January 31, 2006
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MHMR Jan. 31, 2006: Volume 14, Number 2
SPECIAL REPORT: 2006 Drug Costs...Drug costs to rise 8%...3.6 million in standalone PDPs...Chart: drug cost trend, 16 MCOs...Aetna, BCBS-MA, BCBS-MI, BCBS-MN, BCBS-NC, Blue Shield-CA, Cigna, Group Health, Harvard Pilgrim, Health Net, HealthPartners, Horizon BCBS, Humana, Sierra, UnitedHealth, WellPoint...United eyes 3% Part D margin...IL has most Part D PDP lives...WellPoint 4Q06 net jumps...Humana to acquire CHA...Molina to acquire Cape Health...Health Net taps Tough...Aetna names Brennan CMO...HMO stocks rise 1%...Services stocks rise 4%...and more...
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UNITEDHEALTH RAISES ‘06 PROFIT OUTLOOK
UnitedHealth Group (Minnetonka, MN) raised its full-year 2006 earnings projection to between $2.85 and $2.90 per share ($3.7 billion to $3.8 billion based on 1.3 billion diluted shares), a 21% to 23% increase over 2005 results.
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3.6 MILLION ENROLL IN STAND-ALONE PDPs
About 3.6 million Medicare beneficiaries have enrolled in stand-alone Part D drug plans, according to recently released figures from the Center for Medicare & Medicaid Services.
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DRUG COSTS TO RISE 8% IN 2006
Drug costs among leading managed care organizations are expected to rise about 8% in 2006, compared to a 10% increase in 2005, according to a tally by MHMR of 15 leading health plans.
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UNITEDHEALTH EYES 3% ’06 PART D OPERATING MARGIN
UnitedHealth Group (Minnetonka, MN) said it projects operating earnings of $150 million to $160 million on revenues of $5 billion from its Medicare Part D drug business, representing an operating margin of 3.1%.
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WELLPOINT 4Q05 NET JUMPS ON 8.5% MEDICAL COST TREND
Citing a rolling 12-month medical cost trend of less than 8.5% in 2005, WellPoint Inc. (Indianapolis) reported fourth-quarter 2005 net income of $652 million, up 253%, on revenues of $11.432 billion, up 68%.
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MOLINA TO ACQUIRE CAPE HEALTH PLAN
Molina Healthcare (Long Beach, CA) announced it has signed a definitive agreement to acquire HCLB Inc. (Troy, MI), the parent company of Cape Health Plan (Southfield, MI).
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PEOPLE: TOUGH; BRENNAN
Health Net (Woodland Hills, CA) has named Steve Tough president of its Health Net Federal Services division.
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