WellPoint’s reasons for big health rate hikes
Below are key points health insurer WellPoint Inc. cited in a letter Thursday responding to an inquiry by Health and Human Services Secretary Kathleen Sebelius into a steep rate hike planned for some individual insurance policies in California. The insurer has taken criticism for premium increases at its Anthem Blue Cross subsidiary that will approach 40 percent for some customers.
— healthy customers are dropping coverage to save money while sicker ones retain it and run up medical bills [Read the full article]
Molina Healthcare, Inc. (NYSE: MOH – News): Earnings per diluted share for 2009 down 45% from 2008 Annual premium revenues of $3.7 billion, up 18% over 2008 Aggregate membership up 16% over 2008
Molina Healthcare, Inc. (NYSE: MOH – News) today reported its financial results for the fourth quarter and year ended December 31, 2009.
Net loss for the quarter ended December 31, 2009, was $4.5 million, or $0.18 per diluted share, compared with net income of $14.8 million, or $0.55 per diluted share, for the quarter ended December 31, 2008. Net income for the year ended December 31, 2009, was $30.9 million, or $1.19 per diluted share, compared with net income of $59.6 million, or $2.15 per diluted share, for the year ended December 31, 2008. [Read the full article]
Moody’s Investors Service said Thursday it is reviewing health insurer Aetna Inc.’s ratings for a possible downgrade, citing the company’s fourth-quarter financial report and 2010 outlook.
On Feb. 5, Aetna said its fourth-quarter profit fell 15 percent, as it continued to struggle with rising medical costs. Also, the company forecast an operating profit of $2.55 to $2.65 per share in 2010, while analysts expect $2.83 per share.
Moody’s said $4.1 billion of outstanding debt is affected by its review of the company’s “A3,” or upper medium grade, senior debt rating.
Credit ratings reflect a company’s ability to repay debt and are used by lenders to set the terms of borrowing. Lower ratings make it more expensive for companies to borrow money. [Read the full article]
HealthSpring, Inc. (NYSE:HS – News) today announced that it has entered into a new $350 million senior secured credit facility. The new agreement consists of $175 million in five-year term loans and a four-year, $175 million revolving credit facility, $25 million of which was drawn at closing. Outstanding loans under the new credit facility bear interest at a spread over a base rate or LIBOR (initially 325 basis points), depending on the Company total leverage ratio.
Borrowings under the facilities and cash on hand were used to repay approximately $237.0 million of indebtedness outstanding under the Company existing credit agreement, which was scheduled to mature on October 1, 2012. [Read the full article]