Delaware | 001-31826 | 42-1406317 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
7700 Forsyth Blvd. St. Louis, Missouri | 63105 | |
(Address of Principal Executive Offices) | (Zip Code) |
CENTENE CORPORATION | ||||
Date: | July 26, 2016 | By: | /s/ Jeffrey A. Schwaneke | |
Jeffrey A. Schwaneke Executive Vice President & Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release* of Centene Corporation issued July 26, 2016, as to financial results for the second quarter ended June 30, 2016. |
* | The press release is being furnished pursuant to Item 2.02, and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange of 1934, as amended. |
Contact: | Investor Relations Inquiries |
Edmund E. Kroll, Jr. | |
Senior Vice President, Finance & Investor Relations | |
(212) 759-0382 | |
Media Inquiries | |
Marcela Manjarrez-Hawn | |
Senior Vice President and Chief Communications Officer | |
(314) 445-0790 |
GAAP diluted earnings per share (EPS) | $ | 0.98 | |
Health Net acquisition related expenses | 0.16 | ||
Amortization of acquired intangible assets | 0.15 | ||
Adjusted diluted EPS | $ | 1.29 |
Total revenues (in millions) | $ | 10,897 | ||
Health benefits ratio | 86.6 | % | ||
General & administrative expense ratio | 9.2 | % | ||
General & administrative expense ratio, excluding Health Net acquisition related expenses | 9.0 | % | ||
GAAP diluted earnings per share | $ | 0.98 | ||
Adjusted diluted EPS | $ | 1.29 | ||
Total cash flow used in operations (in millions) | $ | (420 | ) |
• | June 30, 2016 managed care membership of 11.4 million, an increase of 6.8 million members, or 148% compared to the second quarter of 2015. |
• | Total revenues for the second quarter of 2016 of $10.9 billion, representing 98% growth compared to the second quarter of 2015. |
• | Health benefits ratio of 86.6% for the second quarter of 2016, compared to 89.1% in the second quarter of 2015. |
• | General and administrative expense ratio of 9.2%, or 9.0% excluding Health Net acquisition related expenses for the second quarter of 2016, compared to 8.4% in the second quarter of 2015. |
• | Operating cash flow of $(420) million for the second quarter of 2016, reflecting an increase in premium and related receivables of approximately $600 million due to the timing of June capitation payments from several of our states (substantially all of which has been collected in July). |
• | Diluted earnings per share for the second quarter of 2016 of $0.98, or $1.29 of Adjusted diluted EPS. In comparison, diluted EPS for the second quarter of 2015 was $0.72, or $0.76 Adjusted diluted EPS. |
• | In July 2016, it was announced that the Department of Defense awarded our wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract. We will continue to operate in the TRICARE North Region until the middle of 2017, when we expect to start health care delivery for the West Region. |
• | In June 2016, our Indiana subsidiary, Managed Health Services, was selected by the Indiana Family & Social Services Administration to begin contract negotiations to provide risk-based managed care services for enrollees in the Healthy Indiana Plan and Hoosier Healthwise programs. This new contract is expected to commence on January 1, 2017. |
• | In June 2016, the Company issued an additional $500 million of 4.75% Senior Notes due 2022 at a premium to yield of 4.41%. The Company used the net proceeds of the offering to repay amounts outstanding under its Revolving Credit Facility and to pay related fees and expenses. |
• | In June 2016, our correctional health care joint venture, Centurion, began operating under two new contracts with the State of New Mexico Corrections Department to provide correctional medical health care services and pharmacy services. |
• | In May 2016, our specialty solutions division, Envolve, Inc. was selected by Maryland Care Inc. d/b/a Maryland Physicians Care MCO to provide health plan management services for its Medicaid operations in Maryland effective July 1, 2017. |
• | In April 2016, our Pennsylvania subsidiary, Pennsylvania Health & Wellness, was selected by the Pennsylvania Department of Human Services to service Medicaid recipients enrolled in the HealthChoices program in three zones. In July 2016, the Commonwealth reissued the request for proposal with an anticipated commencement of April 2017. |
• | In April 2016, we announced the appointment of Christopher Isaak to Senior Vice President, Corporate Controller and Chief Accounting Officer. |
• | In July 2016, FORTUNE magazine announced Centene's position of #470 in its annual ranking of the largest companies globally by revenue. |
• | In June 2016, FORTUNE magazine announced Centene's position of #124 in its annual ranking of America's largest companies by revenue. |
• | In May 2016, our Florida subsidiary, Sunshine Health, received Accreditation from the National Committee for Quality Assurance for its Medicaid and Health Insurance Marketplace Exchange plan, Ambetter from Sunshine Health. |
• | In May 2016, at the Case In Point Platinum Awards, Centene and its specialty solutions divisions, Envolve, Inc. were honored with awards in five categories: Behavioral Health Case Management, Women/Children Case Management, Acute Care, Care Management, and Disease Management/Population Health. |
June 30, | |||||
2016 | 2015 | ||||
Arizona | 597,700 | 210,900 | |||
Arkansas | 52,800 | 45,400 | |||
California | 3,097,600 | 178,700 | |||
Florida | 726,200 | 470,300 | |||
Georgia | 493,300 | 405,000 | |||
Illinois | 234,700 | 209,100 | |||
Indiana | 291,000 | 250,400 | |||
Kansas | 144,800 | 143,000 | |||
Louisiana | 375,300 | 358,900 | |||
Massachusetts | 47,100 | 61,500 | |||
Michigan | 2,200 | 2,700 | |||
Minnesota | 9,500 | 10,900 | |||
Mississippi | 323,800 | 250,600 | |||
Missouri | 102,900 | 82,600 | |||
New Hampshire | 79,700 | 70,800 | |||
New Mexico | 7,100 | — | |||
Ohio | 319,000 | 287,100 | |||
Oregon | 221,500 | — | |||
South Carolina | 113,700 | 112,600 | |||
Tennessee | 20,800 | 21,400 | |||
Texas | 1,037,000 | 969,700 | |||
Vermont | 1,600 | 2,800 | |||
Washington | 239,700 | 214,100 | |||
Wisconsin | 76,100 | 78,600 | |||
Total at-risk membership | 8,615,100 | 4,437,100 | |||
TRICARE eligibles | 2,815,700 | — | |||
Non-risk membership | — | 176,600 | |||
Total | 11,430,800 | 4,613,700 |
June 30, | |||||
2016 | 2015 | ||||
Medicaid: | |||||
TANF, CHIP & Foster Care | 5,541,200 | 3,536,000 | |||
ABD & LTC | 757,500 | 454,000 | |||
Behavioral Health | 455,800 | 203,900 | |||
Commercial | 1,423,400 | 167,400 | |||
Medicare & Duals | 300,700 | 28,200 | |||
Correctional | 136,500 | 47,600 | |||
Total at-risk membership | 8,615,100 | 4,437,100 | |||
TRICARE eligibles | 2,815,700 | — | |||
Non-risk membership | — | 176,600 | |||
Total | 11,430,800 | 4,613,700 |
• | For the second quarter of 2016, total revenues increased 98% to $10.9 billion from $5.5 billion in the second quarter of 2015. The increase was primarily a result of the acquisition of Health Net as well as the impact from expansions, acquisitions or new programs in many of our states in 2015. |
• | HBR of 86.6% for the second quarter of 2016 represents a decrease from 89.1% in the comparable period in 2015 and a decrease from 88.7% in the first quarter of 2016. The year over year HBR decrease is primarily attributable to the acquisition of Health Net, which operates at a lower HBR due to a higher mix of commercial and Medicare business. The sequential decrease is due to normal seasonality and the acquisition of Health Net. |
• | G&A expense ratio of 9.2%, or 9.0% excluding Health Net acquisition related expenses for the second quarter of 2016, compared to 8.4% in the second quarter of 2015. The increase in the G&A expense ratio is primarily attributable to the addition of the Health Net business. |
• | Diluted earnings per share for the second quarter of 2016 of $0.98, or $1.29 of Adjusted diluted EPS when excluding Health Net acquisition related expenses and amortization of acquired intangible assets, including a $0.19 per diluted share benefit related to the 2015 risk adjustment and reinsurance reconciliations under the Affordable Care Act (ACA) in connection with our health insurance marketplace business. In comparison, diluted EPS for the second quarter of 2015 was $0.72, or $0.76 Adjusted diluted EPS when excluding Health Net acquisition related expenses and amortization of acquired intangible assets. |
Days in claims payable, March 31, 20161 | 42 | ||
Impact of Health Net acquisition accounting | 1 | ||
Days in claims payable, June 30, 2016 | 43 | ||
1 A pro-forma adjustment has been made to medical costs to include a full quarter of Health Net medical costs. |
Full Year 2016 | |||||||||
Low | High | ||||||||
Total revenues (in billions) | $ | 39.4 | $ | 40.0 | |||||
GAAP diluted EPS | $ | 2.65 | $ | 3.00 | |||||
Adjusted diluted EPS1 | $ | 4.20 | $ | 4.55 | |||||
HBR | 87.0 | % | 87.5 | % | |||||
G&A expense ratio | 9.4 | % | 9.9 | % | |||||
G&A expense ratio, excluding acquisition related costs | 9.0 | % | 9.5 | % | |||||
Effective tax rate | 54.5 | % | 56.5 | % | |||||
Diluted shares outstanding (in millions) | 162.5 | 163.5 | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
GAAP general and administrative expenses | $ | 949 | $ | 437 | $ | 1,671 | $ | 833 | |||||||||
Health Net acquisition related expenses | 25 | 2 | 214 | 2 | |||||||||||||
General and administrative expenses, excluding Health Net acquisition related expenses | $ | 924 | $ | 435 | $ | 1,457 | $ | 831 | |||||||||
GAAP net earnings from continuing operations | $ | 170 | $ | 88 | $ | 154 | $ | 152 | |||||||||
Health Net acquisition related expenses | 25 | 2 | 214 | 2 | |||||||||||||
Amortization of acquired intangible assets | 43 | 5 | 52 | 12 | |||||||||||||
Income tax effects of adjustments (1) | (14 | ) | (2 | ) | (101 | ) | (5 | ) | |||||||||
Adjusted net earnings from continuing operations | $ | 224 | $ | 93 | $ | 319 | $ | 161 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Annual Guidance December 31, 2016 | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
GAAP diluted earnings per share (EPS) | $ | 0.98 | $ | 0.72 | $ | 1.02 | $ | 1.24 | $2.65 - $3.00 | ||||||||
Health Net acquisition related expenses (2) | 0.16 | 0.01 | 0.89 | 0.01 | $1.00 - $1.05 | ||||||||||||
Amortization of acquired intangible assets (3) | 0.15 | 0.03 | 0.20 | 0.06 | $0.50 - $0.55 | ||||||||||||
Adjusted diluted EPS | $ | 1.29 | $ | 0.76 | $ | 2.11 | $ | 1.31 | $4.20 - $4.55 |
(1) | The income tax effects of adjustments are based on the effective income tax rates applicable to adjusted (non-GAAP) results. The amounts are based on the annual estimated effective income tax rate that would increase or decrease based on the exclusion of these expenses. |
(2) | The Health Net acquisition related expenses per diluted share presented above are net of the income tax benefit (expense) of $(0.02) and $0.01 for the three months ended June 30, 2016 and 2015, respectively; $0.53 and zero for the six months ended June 30, 2016 and 2015, respectively; and estimated $0.37 to $0.41 for the year ended December 31, 2016. |
(3) | The amortization of acquired intangible assets per diluted share presented above are net of the income tax benefit of $0.10 and $0.01 for the three months ended June 30, 2016 and 2015, respectively; $0.14 and $0.04 for the six months ended June 30, 2016 and 2015, respectively; and estimated $0.31 to $0.35 for the year ended December 31, 2016. |
June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,710 | $ | 1,760 | |||
Premium and related receivables | 3,488 | 1,279 | |||||
Short term investments | 443 | 176 | |||||
Other current assets | 1,212 | 390 | |||||
Total current assets | 7,853 | 3,605 | |||||
Long term investments | 4,230 | 1,927 | |||||
Restricted deposits | 137 | 115 | |||||
Property, software and equipment, net | 626 | 518 | |||||
Goodwill | 4,707 | 842 | |||||
Intangible assets, net | 1,609 | 155 | |||||
Other long term assets | 334 | 177 | |||||
Total assets | $ | 19,496 | $ | 7,339 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Medical claims liability | $ | 3,950 | $ | 2,298 | |||
Accounts payable and accrued expenses | 3,218 | 976 | |||||
Return of premium payable | 589 | 207 | |||||
Unearned revenue | 212 | 143 | |||||
Current portion of long term debt | 845 | 5 | |||||
Total current liabilities | 8,814 | 3,629 | |||||
Long term debt | 3,649 | 1,216 | |||||
Other long term liabilities | 1,346 | 170 | |||||
Total liabilities | 13,809 | 5,015 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 147 | 156 | |||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued or outstanding at June 30, 2016 and December 31, 2015 | — | — | |||||
Common stock, $0.001 par value; authorized 400,000,000 shares; 176,231,905 issued and 170,653,478 outstanding at June 30, 2016, and 126,855,477 issued and 120,342,981 outstanding at December 31, 2015 | — | — | |||||
Additional paid-in capital | 4,119 | 956 | |||||
Accumulated other comprehensive earnings (loss) | 43 | (10 | ) | ||||
Retained earnings | 1,510 | 1,358 | |||||
Treasury stock, at cost (5,578,427 and 6,512,496 shares, respectively) | (143 | ) | (147 | ) | |||
Total Centene stockholders’ equity | 5,529 | 2,157 | |||||
Noncontrolling interest | 11 | 11 | |||||
Total stockholders’ equity | 5,540 | 2,168 | |||||
Total liabilities and stockholders’ equity | $ | 19,496 | $ | 7,339 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Premium | $ | 9,688 | $ | 4,692 | $ | 15,674 | $ | 8,991 | |||||||
Service | 588 | 492 | 1,013 | 954 | |||||||||||
Premium and service revenues | 10,276 | 5,184 | 16,687 | 9,945 | |||||||||||
Premium tax and health insurer fee | 621 | 322 | 1,163 | 692 | |||||||||||
Total revenues | 10,897 | 5,506 | 17,850 | 10,637 | |||||||||||
Expenses: | |||||||||||||||
Medical costs | 8,385 | 4,181 | 13,696 | 8,042 | |||||||||||
Cost of services | 515 | 419 | 882 | 821 | |||||||||||
General and administrative expenses | 949 | 437 | 1,671 | 833 | |||||||||||
Amortization of acquired intangible assets | 43 | 5 | 52 | 12 | |||||||||||
Premium tax expense | 498 | 239 | 948 | 520 | |||||||||||
Health insurer fee expense | 130 | 52 | 204 | 107 | |||||||||||
Total operating expenses | 10,520 | 5,333 | 17,453 | 10,335 | |||||||||||
Earnings from operations | 377 | 173 | 397 | 302 | |||||||||||
Other income (expense): | |||||||||||||||
Investment and other income | 32 | 10 | 47 | 19 | |||||||||||
Interest expense | (52 | ) | (11 | ) | (85 | ) | (21 | ) | |||||||
Earnings from continuing operations, before income tax expense | 357 | 172 | 359 | 300 | |||||||||||
Income tax expense | 188 | 84 | 205 | 147 | |||||||||||
Earnings from continuing operations, net of income tax expense | 169 | 88 | 154 | 153 | |||||||||||
Discontinued operations, net of income tax benefit | (1 | ) | — | (2 | ) | (1 | ) | ||||||||
Net earnings | 168 | 88 | 152 | 152 | |||||||||||
(Earnings) loss attributable to noncontrolling interests | 1 | — | — | (1 | ) | ||||||||||
Net earnings attributable to Centene Corporation | $ | 169 | $ | 88 | $ | 152 | $ | 151 | |||||||
Amounts attributable to Centene Corporation common shareholders: | |||||||||||||||
Earnings from continuing operations, net of income tax expense | $ | 170 | $ | 88 | $ | 154 | $ | 152 | |||||||
Discontinued operations, net of income tax benefit | (1 | ) | — | (2 | ) | (1 | ) | ||||||||
Net earnings | $ | 169 | $ | 88 | $ | 152 | $ | 151 | |||||||
Net earnings (loss) per common share attributable to Centene Corporation: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 1.00 | $ | 0.74 | $ | 1.04 | $ | 1.28 | |||||||
Discontinued operations | (0.01 | ) | — | (0.01 | ) | (0.01 | ) | ||||||||
Basic earnings per common share | $ | 0.99 | $ | 0.74 | $ | 1.03 | $ | 1.27 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 0.98 | $ | 0.72 | $ | 1.02 | $ | 1.24 | |||||||
Discontinued operations | (0.01 | ) | — | (0.01 | ) | (0.01 | ) | ||||||||
Diluted earnings per common share | $ | 0.97 | $ | 0.72 | $ | 1.01 | $ | 1.23 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 170,558,778 | 119,003,569 | 148,050,927 | 118,894,269 | |||||||||||
Diluted | 173,778,537 | 122,965,011 | 151,147,640 | 122,785,459 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 152 | $ | 152 | |||
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities | |||||||
Depreciation and amortization | 111 | 53 | |||||
Stock compensation expense | 83 | 33 | |||||
Deferred income taxes | (13 | ) | (13 | ) | |||
Gain on contingent consideration | (1 | ) | (10 | ) | |||
Changes in assets and liabilities | |||||||
Premium and related receivables | (1,121 | ) | (341 | ) | |||
Other current assets | (26 | ) | (28 | ) | |||
Medical claims liabilities | 188 | 366 | |||||
Unearned revenue | (50 | ) | (102 | ) | |||
Accounts payable and accrued expenses | (8 | ) | 166 | ||||
Other long term liabilities | 463 | 144 | |||||
Other operating activities, net | (3 | ) | (25 | ) | |||
Net cash (used in) provided by operating activities | (225 | ) | 395 | ||||
Cash flows from investing activities: | |||||||
Capital expenditures | (94 | ) | (58 | ) | |||
Purchases of investments | (956 | ) | (513 | ) | |||
Sales and maturities of investments | 593 | 276 | |||||
Investments in acquisitions, net of cash acquired | (862 | ) | (11 | ) | |||
Other investing activities, net | — | 7 | |||||
Net cash used in investing activities | (1,319 | ) | (299 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 5,711 | 750 | |||||
Payment of long term debt | (3,124 | ) | (479 | ) | |||
Common stock repurchases | (27 | ) | (7 | ) | |||
Purchase of noncontrolling interest | (14 | ) | — | ||||
Debt issue costs | (59 | ) | (4 | ) | |||
Other financing activities, net | 7 | 1 | |||||
Net cash provided by financing activities | 2,494 | 261 | |||||
Net increase in cash and cash equivalents | 950 | 357 | |||||
Cash and cash equivalents, beginning of period | 1,760 | 1,610 | |||||
Cash and cash equivalents, end of period | $ | 2,710 | $ | 1,967 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | $ | 36 | $ | 27 | |||
Income taxes paid | $ | 222 | $ | 145 | |||
Equity issued in connection with acquisitions | $ | 3,105 | $ | 13 |
Q2 | Q1 | Q4 | Q3 | Q2 | ||||||||||||
2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||
MANAGED CARE MEMBERSHIP BY STATE | ||||||||||||||||
Arizona | 597,700 | 607,000 | 440,900 | 223,600 | 210,900 | |||||||||||
Arkansas | 52,800 | 50,700 | 41,900 | 40,900 | 45,400 | |||||||||||
California | 3,097,600 | 3,125,400 | 186,000 | 183,900 | 178,700 | |||||||||||
Florida | 726,200 | 660,800 | 510,400 | 486,500 | 470,300 | |||||||||||
Georgia | 493,300 | 495,500 | 408,600 | 406,700 | 405,000 | |||||||||||
Illinois | 234,700 | 239,100 | 207,500 | 211,300 | 209,100 | |||||||||||
Indiana | 291,000 | 290,300 | 282,100 | 276,700 | 250,400 | |||||||||||
Kansas | 144,800 | 141,100 | 141,000 | 137,500 | 143,000 | |||||||||||
Louisiana | 375,300 | 381,200 | 381,900 | 358,800 | 358,900 | |||||||||||
Massachusetts | 47,100 | 52,400 | 61,500 | 63,700 | 61,500 | |||||||||||
Michigan | 2,200 | 2,600 | 4,800 | 6,600 | 2,700 | |||||||||||
Minnesota | 9,500 | 9,500 | 9,600 | 9,400 | 10,900 | |||||||||||
Mississippi | 323,800 | 328,300 | 302,200 | 301,000 | 250,600 | |||||||||||
Missouri | 102,900 | 100,000 | 95,100 | 88,400 | 82,600 | |||||||||||
New Hampshire | 79,700 | 81,500 | 71,400 | 71,900 | 70,800 | |||||||||||
New Mexico | 7,100 | — | — | — | — | |||||||||||
Ohio | 319,000 | 314,000 | 302,700 | 308,100 | 287,100 | |||||||||||
Oregon | 221,500 | 209,000 | 98,700 | 99,800 | — | |||||||||||
South Carolina | 113,700 | 107,700 | 104,000 | 104,800 | 112,600 | |||||||||||
Tennessee | 20,800 | 20,100 | 20,000 | 20,200 | 21,400 | |||||||||||
Texas | 1,037,000 | 1,036,700 | 983,100 | 976,500 | 969,700 | |||||||||||
Vermont | 1,600 | 1,500 | 1,700 | 1,500 | 2,800 | |||||||||||
Washington | 239,700 | 226,500 | 209,400 | 208,600 | 214,100 | |||||||||||
Wisconsin | 76,100 | 78,400 | 77,100 | 78,100 | 78,600 | |||||||||||
Total at-risk membership | 8,615,100 | 8,559,300 | 4,941,600 | 4,664,500 | 4,437,100 | |||||||||||
TRICARE eligibles | 2,815,700 | 2,819,700 | — | — | — | |||||||||||
Non-risk membership | — | 161,400 | 166,300 | 169,900 | 176,600 | |||||||||||
Total | 11,430,800 | 11,540,400 | 5,107,900 | 4,834,400 | 4,613,700 | |||||||||||
MANAGED CARE MEMBERSHIP BY LINE OF BUSINESS | ||||||||||||||||
Medicaid: | ||||||||||||||||
TANF, CHIP & Foster Care | 5,541,200 | 5,464,200 | 3,763,400 | 3,719,900 | 3,536,000 | |||||||||||
ABD & LTC | 757,500 | 757,600 | 478,600 | 473,700 | 454,000 | |||||||||||
Behavioral Health | 455,800 | 456,500 | 456,800 | 216,700 | 203,900 | |||||||||||
Commercial | 1,423,400 | 1,518,900 | 146,100 | 155,600 | 167,400 | |||||||||||
Medicare & Duals | 300,700 | 303,100 | 37,400 | 39,300 | 28,200 | |||||||||||
Correctional | 136,500 | 59,000 | 59,300 | 59,300 | 47,600 | |||||||||||
Total at-risk membership | 8,615,100 | 8,559,300 | 4,941,600 | 4,664,500 | 4,437,100 | |||||||||||
TRICARE eligibles | 2,815,700 | 2,819,700 | — | — | — | |||||||||||
Non-risk membership | — | 161,400 | 166,300 | 169,900 | 176,600 | |||||||||||
Total | 11,430,800 | 11,540,400 | 5,107,900 | 4,834,400 | 4,613,700 | |||||||||||
NUMBER OF EMPLOYEES | 28,900 | 28,000 | 18,200 | 17,100 | 15,800 |
Q2 | Q1 | Q4 | Q3 | Q2 | ||||||||||||||||
2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||||
DAYS IN CLAIMS PAYABLE (a) | 43 | 66 | 44 | 45 | 46 | |||||||||||||||
(a) Days in claims payable is a calculation of medical claims liabilities at the end of the period divided by average claims expense per calendar day for such period. On a pro-forma basis, DCP for Q1 2016 is 42, reflecting adjusted medical costs to include a full quarter of Health Net operations. | ||||||||||||||||||||
CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) | ||||||||||||||||||||
Regulated | $ | 7,324 | $ | 7,682 | $ | 3,900 | $ | 3,834 | $ | 3,667 | ||||||||||
Unregulated | 196 | 139 | 78 | 91 | 82 | |||||||||||||||
Total | $ | 7,520 | $ | 7,821 | $ | 3,978 | $ | 3,925 | $ | 3,749 | ||||||||||
DEBT TO CAPITALIZATION | 44.8 | % | 44.6 | % | 36.0 | % | 38.4 | % | 37.1 | % | ||||||||||
DEBT TO CAPITALIZATION EXCLUDING NON-RECOURSE DEBT (b) | 44.4 | % | 44.3 | % | 34.7 | % | 37.1 | % | 35.7 | % | ||||||||||
(b) The non-recourse debt represents the Company's mortgage note payable ($66 million at June 30, 2016). | ||||||||||||||||||||
Debt to capitalization is calculated as follows: total debt divided by (total debt + total equity). |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Health benefits ratio | 86.6 | % | 89.1 | % | 87.4 | % | 89.4 | % | |||
General & administrative expense ratio | 9.2 | % | 8.4 | % | 10.0 | % | 8.4 | % | |||
General & administrative expense ratio, excluding Health Net acquisition related expenses | 9.0 | % | 8.4 | % | 8.7 | % | 8.4 | % |
Balance, June 30, 2015 | $ | 2,092 | ||
Acquisitions | 1,540 | |||
Incurred related to: | ||||
Current period | 23,148 | |||
Prior period | (252 | ) | ||
Total incurred | 22,896 | |||
Paid related to: | ||||
Current period | 20,780 | |||
Prior period | 1,798 | |||
Total paid | 22,578 | |||
Balance, June 30, 2016 | $ | 3,950 |
RE!;C$T:S$Q=3 Z8C([ RE!;C$T:S$Q=3 Z8C([ #& 7?QU[]O';M6\7W[U=NG$&E]C^+#AN7;=V\]"],W#PHUZ?(4F0&(EO
M! F1(H3:(204)#[]^$$X4X\B0]1'!'WV(7B@?$D<\1\2 0JD3BY[H**&."S5
MH\H#,[ P PTH],#""B"*2&*(+*!P0@?$%%3'!")^B**,)I8X8@\H=+C"##_0
M8\Z.'MKX(0,M'B3.#"NL@".-0 X!#$79!C18X81 ]H\@U5K E$-F
M2BBP@04"Q:8=24E)4JH9AN8P@1?*R ;^7NK "28P 0_LBXA&] 1.< "']GP
MASEQH<#2L+XCK2"&4L(B%$\$Q!/IR( VLJ"
MK[K5=2/@G4 $UZ&NUI6%>CW(&CR UK_2H .62,@6/E?8'DQ@$A!9[%W[:KD>
M>( (ZAA(&";GUZ^FSAH32%QA8W"#]66U(:Z8WP(]D(:!JJ%9\)/^WTYZ\0CJ
MG8]X'K##1LD7P,W8#WL4J 7[W# /-_H_=#IG!CE@,?4S% +C@[JH-K#/1 GGN-M4*?MN+P.($
M$0MYO%X'D-L%\>$A#LS/<-D-4S(]@"] ;3 _?CD\>SDYA#M%7#E#
M9S5&=3E#@#I(:SM*@CE*C#M2ACQS(]@"] ;3 _?CD\>SDYA#M%7#E#9S5&=3E#@#I(:SM*@CE*C#M2ACQ:8_?;^UUN#@ (N
M!OVXX]Q[M\VW3%6&73;AB]/]]02N[%%"X6^+K;C>'L[D@1/UE#&YUVV?:$$X
M!H7!=N$33$.-!Z&7?3GAF1L>PP3'U+/'-V0@40(G]81BM4EL:":P9]<2SUFE
MH/G*@@DXB<#" J8(-(<&Q%M*O N^?H8]\CA5:H(*-]!S3F>?65^^KQW(\+M
MY+0 O,H.#\PSM5GGSSW*'C?O,X?8+G'!L73GO+NM[S]S8]S90"@^0CX 0\<
MHG0VYS?^\T F#CE7%I5J(VDPKQ#C7H7:+!/ P0"?0P$.P0#"KP >5S
M@RD0#(7@ :(!&LZE 7J0E(MY@4@G$.\ !80Y09@9&B (D2+(6R28$">(BB[P
M )$ 5+!E0!5PE@+1#4-0 1[(/9U!;K)5F)5R#G:Y$/3085%B(CAR FMP"