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April 30, 2006
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MHMR April 30, 2006; Volume 14, Number 8
SPECIAL REPORT: Executive Compensation...MCO executive pay falls 2%...Chart: executive pay, 2005...Stock options hit $249 MM...Chart: MCO stock options, 2005...Caremark CEO cashes in options...UnitedHealth shares fall...’05 TX HMO net income falls...Chart: TX HMO financials...NE HMO net declines...Chart: NE HMOs...United restructures in Florida...Watts sells UHP to Care 1st...MA mandates health insurance...Cigna rewards healthy behavior...CMS raises Medicare rates 1%...Correction: PharmaCare...Aetna, Cigna cover online visits...HMO stocks fall 2%...Services stocks fall 4%...Centene to buy OptiCare Vision...Matria shares plunge...and more...
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MCO EXECUTIVE PAY FALLS 2% IN 2005
Managed care executive pay declined 2% in 2005, with 15 chairmen, chief executives and healthcare division presidents at 12 publicly traded managed care companies receiving total compensation (excluding stock options; see separate story) of $72.256 million in 2005.
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TX HMO NET INCOME DROPS 4.3% IN 2005
HMOs in Texas posted net income of $224.3 million, down 4.3%, on revenues of $7.399 billion, up 5.2%, in 2005, according to an MHMR analysis of state insurance department data.
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NE HMOs POST 36.2% DECLINE IN ’05 NET INCOME
Nebraska HMOs reported 2005 net income of $36.2 million, a 36.2% decline, on revenues of $1.14 billion, a gain of 7.5%, according to an MHMR tally of state insurance department data on four plans.
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UNITED RESTRUCTURES FLORIDA OPERATIONS
United Healthcare, a unit of UnitedHealth Group (Minnetonka, MN), has combined its central and northern Florida operations and appointed David Lewis, 48, as chief executive.
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WATTS HEALTH SELLS HMO TO CARE 1st
Watts Health Foundation Inc. (Inglewood, CA), a nonprofit health plan, has sold its UHP Healthcare HMO for $30 million to Care 1st Health Plan (Alhambra, CA), a for-profit managed care company focused on the Medi-Cal market.
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MATRIA SHARES PLUNGE
Shares in disease management company Matria Healthcare (Marietta, GA) plunged 24% last week, with most of the decline coming on Friday after the company updated its full-year 2006 profit projections.
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CMS TO RAISE MEDICARE HMO RATES BY 1%
The Centers for Medicare & Medicaid Services says that capitation rates for Medicare Advantage plans in 2007 will increase by only about 1.1% on average in 2007 (after adjustments for fee-for-service normalization).
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AETNA AND CIGNA TO COVER ONLINE DOCTOR VISITS
Aetna Inc. (Hartford, CT) and Cigna Corp. (Philadelphia) have each separately announced plans to cover online physician consultations using information technology developed by RelayHealth (Emeryville, CA). Aetna will start its program in California and Florida beginning in May.
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CORRECTION: PHARMACARE
The March 31, 2006 issue of MHMR incorrecly spelled the name of Greg Weishar, chief executive of PharmaCare, a unit of CVS. In addition, PharmaCare is based in Lincoln, RI.
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CORRECTION: PHARMACARE
The March 31, 2006 issue of MHMR incorrecly spelled the name of Greg Weishar, chief executive of PharmaCare, a unit of CVS. In addition, PharmaCare is based in Lincoln, RI.
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CORRECTION: PHARMACARE
The March 31, 2006 issue of MHMR incorrecly spelled the name of Greg Weishar, chief executive of PharmaCare, a unit of CVS. In addition, PharmaCare is based in Lincoln, RI.
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