Morning Briefing
Summaries of health policy coverage from major news organizations
Growth In Medicaid Business Helps Anthem Beat Q2 Profit Estimates
U.S. health insurer Anthem Inc (ANTM.N) reported a better-than-expected profit as enrollments rose in its Medicaid plans, which cater to low-income Americans. The company, whose proposed acquisition of rival Cigna Corp (CI.N) is being challenged by U.S. antitrust authorities, said overall memberships increased 3.2 percent in the second quarter. Anthem's memberships have been rising in the past couple of years as more Americans sign up for its Medicaid plans expanded under President Barack Obama's Affordable Care Act. (Penumudi, 7/27)
The head of St. Louis-based Centene is shooting down speculation it will bid on any units being unloaded by larger companies that are considering a merger. There have been reports the St. Louis-based health insurer is interested in trying to acquire units that would have to be divested by the potential combinations of Aetna and Humana or Anthem and Cigna. (Pratt, 7/26)
Centene Corp. has earmarked $300 million to cover potential losses from business the company picked up in its $6 billion acquisition of Health Net Inc. last year, company officials said Tuesday. During the company鈥檚 second-quarter conference call Tuesday morning, executives disclosed that they had discovered $300 million in 鈥減remium deficiency reserves,鈥 or an estimate of a potential loss, mainly due to the increased use of substance abuse treatment centers in California and unfavorable results in the company鈥檚 individual commercial business in Arizona. (Liss, 7/27)
Three-fifths of enrollees in the Federal Long Term Care Insurance Program who are facing steep premium increases will be eligible to invoke a little-known feature of the program that will allow them to stop paying premiums but still keep some coverage, the Office of Personnel Management has said. The paid-up provision allows enrollees whose premium is increased beyond a certain percentage to stop paying premiums, with benefits then reduced. The triggering percentages vary according to the age at enrollment and take into account all increases since that time; FLTCIP rates also increased for many enrollees in early 2010. (Yoder, 7/26)
