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December 15, 2007
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MHMR Dec. 15, 2007: Volume 15, Number 21
3Q07 MCO lives up 3.6%...United admits integration woes…ValueOptions sells stake…PBM Outlook: Can the good times last?...Chart: Membership, top PBMs…United, Medco win NY account… WellPoint eyes membership gain…3Q07 BCBS HMO lives decline…Chart: 3Q07 BCBS HMO lives…Health Net reaffirms outlook…Aetna expands Medicare HMO…Magellan expects flat profits…WellPoint taps Langenus…Aetna investment chief to retire…MCO stocks rise 2%...Services stocks rise 0.4%...and more…
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3Q07 MCO MEMBERSHIP UP 3.6%
Fully funded and self-funded enrollment combined increased 3.6% to 107.3 million at 22 leading managed care organizations as of Sept. 30, 2007.
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UNITED ADMITS INTEGRATION PROBLEMS
UnitedHealth Group (Minnetonka, MN) admitted during its investor conference in New York this week that its aggressive attempts to integrate acquired health plans—especially PacifiCare in California—resulted in physician resentment, network disruption, member frustration and lost customers.
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VALUEOPTIONS SELLS MINORITY STAKE
ValueOptions Inc. (Norfolk, VA) said it has completed the previously announced sale of a significant equity stake in the company to private equity firm Crestview Partners (New York).
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3Q07 BCBS HMO/POS LIVES DECLINE 1.8%
Fully funded HMO and POS lives among 19 leading Blue Cross Blue Shield companies declined 1.8% to 25.258 million as of Sept. 30, 2007, compared to a year earlier.
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HEALTH NET TO REAFFIRM 2007 EARNINGS PROJECTIONS
Health Net (Woodland Hills, CA) said it would reaffirm its full-year 2007 earnings projections in meetings with investors and Wall Street analysts on Dec. 11. Health Net had previously reported (MHMR, Nov. 15) that it would post fourth-quarter net income of $1.10 per share based on 114 million diluted shares.
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WELLPOINT NAMES HEAD OF NATIONAL ACCOUNTS
WellPoint Inc. (Indianapolis) has named John Langenus president and chief executive of Anthem National Accounts, which serves more than 10.9 million members. He was most recently with Coventry. Anthem National Accounts is part of WellPoint’s commercial business unit, headed by Ken Goulet.
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AETNA INVESTMENT HEAD HOLT TO RETIRE
Timothy Holt, 54, chief investment officer for Aetna Inc. (Hartford, CT), announced his retirement effect in the first quarter of 2008. Holt, who has worked for Aetna for 30 years, will be replaced by Jean LaTorre, who is currently head of fixed income investments.
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UNITED, MEDCO WIN NY STATE EMPLOYEE PBM PACT
The state of New York has awarded UnitedHealth Group (Minnetonka, MN) the contract to provide pharmacy benefit management services to 1 million members, with Medco Health Solutions (Franklin Lakes, NJ) administering the program.
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