-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, QDiXc5Tguy5yVCSFIAz21tqvBVytWwpe2ucQopOvyjBhtSfVwANn8htnPdiFKeg2 BOllYujeEsUq3hZMHRg/Cg== 0000950131-95-002064.txt : 19950804 0000950131-95-002064.hdr.sgml : 19950804 ACCESSION NUMBER: 0000950131-95-002064 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950803 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950803 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED HEALTHCARE CORP CENTRAL INDEX KEY: 0000731766 STANDARD INDUSTRIAL CLASSIFICATION: HOSPITAL & MEDICAL SERVICE PLANS [6324] IRS NUMBER: 411321939 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10864 FILM NUMBER: 95558578 BUSINESS ADDRESS: STREET 1: 300 OPUS CENTER STREET 2: 9900 BREN ROAD EAST CITY: MINNETONKA STATE: MN ZIP: 55343 BUSINESS PHONE: 6129361300 8-K 1 FORM 8-K 08-03-95 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): AUGUST 3, 1995 -------------- UNITED HEALTHCARE CORPORATION ----------------------------- (exact name of registrant as specified in charter) MINNESOTA --------- (State or other jurisdiction of incorporation) 0-13253 41-1321939 ------- ---------- (Commission File Number) (IRS Employer Identification No.) 300 OPUS CENTER, 9900 BREN ROAD EAST, MINNETONKA, MN 55343 --------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (612) 936-1300 -------------- Item 5. Other Events - --------------------- On August 3, 1995, the Registrant announced its financial results for the second quarter ended June 30, 1995. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. - ---------------------------------------------------------------------------- (c) Exhibits - --- -------- Exhibit 99.1 - United HealthCare Corporation Press Release, dated August 3, 1995. Exhibit 99.2 - Supplemental Financial Schedules related to financial results for the second quarter ended June 30, 1995. 2 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UNITED HEALTHCARE CORPORATION ----------------------------------- (Registrant) By /s/ David P. Koppe -------------------------------- David P. Koppe Vice President, Treasurer and Chief Financial Officer Date: August 3, 1995 3 EXHIBIT INDEX Exhibit Number Description Page No. - -------------- ----------- ------- 99.1 United HealthCare Corporation Press Release dated 5 August 3, 1995. 99.2 Supplemental Financial Schedules related to financial 13 results for the second quarter ended June 30, 1995. 4 EX-99.1 2 PRESS RELEASE 08-03-95 Exhibit 99.1 [LOGO OF UNITED HEALTHCARE CORPORATION] - -------------------------------------------------------------------------------- News Release - -------------------------------------------------------------------------------- United HealthCare Corporation(SM) CONTACTS: David Koppe, CFO (612) 936-7211 Bernard McDonagh Vice President, Investor Relations (612) 936-7214 Noreen Conway, Vice President Public Relations and Communications (612) 936-1125 (For Immediate Release) UNITED HEALTHCARE REPORTS SECOND QUARTER NET EARNINGS GROWTH OF 20 PERCENT SAME-STORE ENROLLMENT UP 17 PERCENT YEAR-OVER-YEAR; GAINS SEEN IN MEDICARE ENROLLMENT; LOW MEDICAL COST TRENDS CONTINUE MINNEAPOLIS (August 3, 1995) -- United HealthCare Corporation (NYSE:UNH) announced today that total revenues for the second quarter ended June 30, 1995 increased 23 percent to $1.16 billion compared to $939.5 million for the same period a year ago. Second quarter net earnings were $89.9 million, up 20 percent from comparable net earnings of $74.9 million for last year's second quarter. Second quarter 1995 earnings per share were $0.51, a 19 percent increase over comparable earnings per share of $0.43 for the second quarter of 1994. (In the second quarter of 1994, the company recorded nonrecurring, non-operating merger costs of $35.9 million associated with its May 1994 acquisitions of Complete Health Services, Inc. and Ramsay-HMO, Inc. This reduced second quarter 1994 net earnings before extraordinary gain by $22.3 million, or $0.13 per share, and resulted in reported second quarter 1994 net earnings before extraordinary gain of $0.30 per share. In addition, the company's May 1994 sale of its subsidiary Diversified Pharmaceutical Services, Inc. resulted in a second quarter 1994 extraordinary gain of $1.38 billion, or $7.85 per share.) (more) Public Relations and Communications P.O. Box 1459 Minneapolis, Minnesota 55440-1459 (612) 936-3693 United HealthCare Corporation Second Quarter Results August 3, 1995 -- p. 2 For the six months ended June 30, 1995, total revenues increased 23 percent to $2.26 billion, compared to $1.84 billion for the same period a year ago. Net earnings for the six-month 1995 period were $179.3 million, up 23 percent from comparable net earnings of $145.3 million for the six-month period in 1994. Earnings per share for the six-month 1995 period were $1.02, a 23 percent increase over comparable earnings per share of $0.83 for the six-month period in 1994. United HealthCare Chairman and CEO William McGuire said, "We are pleased with the second quarter and six month results, particularly during this period of challenging market conditions and at a time we are making sizable internal investments in new business development. The strong growth in commercial enrollment and the acceleration of growth in Medicare enrollment that were seen during the quarter are very encouraging. While continued investments in new products and programs have resulted in higher selling, general and administrative costs, we believe this will have a positive impact on the ongoing development of United HealthCare. We are particularly pleased to see that our medical cost trends remain stable and in the low single digits. The minor increase in the medical expense ratio is predominately a reflection of declines in Medicaid reimbursement rates in certain Medicaid markets, and because of our internal decision to selectively increase Medicaid provider reimbursements. Our commercial business has remained very strong. Inpatient utilization in particular has continued to decrease. We are encouraged that we have not seen any unusual or unanticipated system-wide increases in medical costs." ADDITIONAL HIGHLIGHTS - --------------------- ENROLLMENT: Year-over-year same-store enrollment in owned health plans increased 17 percent, or 399,700 enrollees, with strong growth seen in all segments. Commercial enrollment was up 16 percent, Medicaid 24 percent, and Medicare 21 percent. Second quarter 1995 same-store growth was the best second quarter enrollment in the company's history, with the addition of 78,400 members. This compares to the 57,700 enrollees added in the same quarter a year ago. For the six months ended in June 1995, the company added a total of 264,700 members. "Our strong second quarter enrollment growth is very encouraging," said Dr. McGuire, "particularly in light of the fact that our Medicare initiatives are just beginning, and we are still awaiting the start of a number of state managed care Medicaid programs. In addition, we are very pleased with our strong second-quarter commercial enrollment growth given the competitive premium rate environment in some of our markets. We continue to believe that same-store enrollment gains of 15-20 percent remain attainable in 1995." (more) United HealthCare Corporation Second Quarter Results August 3, 1995 -- p. 3 UNITED HEALTHCARE CORPORATION OWNED HEALTH PLAN ENROLLMENT
JUNE 30, DECEMBER 31, 1995 1994 1994 ---- ---- ---- Enrollment (re-stated for pooled acquisitions only) Commercial 2,342,300 1,706,200 1,790,500 Medicaid 313,500 253,000 285,400 Medicare 124,600 102,600 108,900 --------- --------- --------- Total 2,780,400 2,061,800 2,184,800 --------- --------- --------- Enrollment (same-store re-stated for all acquisitions) Commercial 2,342,300 2,025,100 2,121,400 Medicaid 313,500 253,000 285,400 Medicare 124,600 102,600 108,900 --------- --------- --------- Total 2,780,400 2,380,700 2,515,700 --------- --------- ---------
MEDICAL COSTS: The company noted that the medical expense ratio, the percent of premium revenue expensed as medical costs, rose slightly in the second quarter to 78.6 percent from the 78.1 percent reported for the same quarter a year ago and from the 78.0 percent reported last quarter. Commercial and Medicare product results remain very good. For the company's commercial products, medical cost trends remain in the 1-2 percent range. Hospital utilization is flat to down, with a very small reciprocal increase in utilization in the outpatient component of medical costs noted in a few markets. (more) United HealthCare Corporation Second Quarter Results August 3, 1995 -- p. 4 Physician costs have risen only modestly in some of the company's markets, while they have decreased in others. The majority of the second-quarter increase in the medical expense ratio resulted from the company's Medicaid programs. Several sites contributed to the increase including: . The company's new, increased Medicaid enrollment in Rhode Island has had an initial higher medical expense ratio than experienced in other markets. This is not totally unexpected, since this is the first program of its type in that state. This higher utilization should abate over time as the company gains more experience with the Medicaid population in this market. . The company has a very successful, well-regarded Medicaid product in Illinois and continues to await implementation of the state's previously announced decision to expand its managed care program for Medicaid. In anticipation of a larger enrollment base, the company made a strategic decision to strengthen its provider network and increase reimbursement to its Medicaid providers in early 1995. This has resulted in a slight increase in costs at this site. . The company has received some Medicaid rate reductions in 1995, particularly in Ohio. This resulted in a small increase in medical expense ratio for that service line. SG&A COSTS: SG&A spending was 14.6 percent of revenues for the second quarter of 1995, up sequentially from the 14.3 percent for the first quarter, but down significantly from the 15.8 percent reported for the same quarter a year ago. The sequential increase in spending was due to the company's continued investments in new and existing programs, including: MEDICARE: The company remains on-track to meet its goal of having risk contracts in all of its major owned health plan markets by March 1996. This effort requires high front-end investments which were manifest in the second quarter administrative expenses. The addition of 10,000 new Medicare members in the second quarter is a record for the company and reflects the early positive results of these efforts. The company expects continued acceleration in Medicare enrollment in the future because of these efforts. (more) United HealthCare Corporation Second Quarter Results August 3, 1995 -- p. 5 INTERNATIONAL: Spending continues on various international initiatives. The company believes that there are attractive opportunities in this area and that it is well-positioned to take advantage of them in the future. CARE FOR THE AGED: Prospects for specialty programs in this area look particularly encouraging, and the company continues to invest in their development. Three sites are now operational under the EverCare Demonstration Project with HCFA, and six more are in development. Sequentially more positive financial results are expected from these ongoing efforts. MANAGED AND SPECIALTY SERVICES: These businesses performed very well in the quarter. Revenue and operating income each grew 8 percent on a sequential basis from the first quarter of 1995. Managed health plans realized a strong 19 percent enrollment growth for the 12-month period. Results from the managed health plans and the company's mental health business, United Behavioral Systems, were the primary drivers of these favorable results. Managed health plans and specialty services continue to be an important source of revenue and earnings for United. "Overall, we are pleased with our second quarter results," said Dr. McGuire. "Our enrollment growth has been strong in all segments, and despite a more competitive market for commercial enrollees, we have maintained our pricing discipline. Looking ahead, our pending acquisition of MetraHealth will create an even stronger company with enhanced prospects for superior growth in revenues and earnings. We look forward to our company having a broader array of products and skills, expanded sites of service, and additional types of customers as we continue the growth and development of United HealthCare." United HealthCare Corporation is a national leader in health care management, serving purchasers, users, managers and providers of health care since 1974. The company's broad range of products is offered through 21 locally-based owned and managed health plans, whose membership exceeds 3.8 million, and its non- geographically bounded specialty care management companies, which serve the needs of 27 million-plus lives. # # # # # UNITED HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited)
Three Months Ended Six Months Ended June 30 June 30 ------- ------- 1995 1994 1995 1994 ---- ---- ---- ---- REVENUES Premiums $1,048,773 $ 835,702 $2,053,262 $1,640,693 Management Service 68,749 77,552 133,973 158,974 Investment Income and Other 40,423 26,211 74,545 43,354 ---------- ---------- ---------- ---------- Total Revenues 1,157,945 939,465 2,261,780 1,843,021 ---------- ---------- ---------- ---------- OPERATING EXPENSES Medical Costs 824,161 652,266 1,607,662 1,281,844 Selling, General and Administrative Costs 169,519 148,168 327,097 291,534 Depreciation and Amortization 20,384 16,378 40,049 32,281 ---------- ---------- ---------- ---------- Total Operating Expenses 1,014,064 816,812 1,974,808 1,605,659 ---------- ---------- ---------- ---------- EARNINGS FROM OPERATIONS 143,881 122,653 286,972 237,362 ---------- ---------- ---------- ---------- Interest Expense (378) (569) (558) (1,137) Merger Costs -- (35,940) -- (35,940) ---------- ---------- ---------- ---------- EARNINGS BEFORE INCOME TAXES, MINORITY INTERESTS AND EXTRAORDINARY GAIN 143,503 86,144 286,414 200,285 Provision for Income Taxes (53,096) (33,031) (105,974) (76,098) Minority Interests in Net Earnings of consolidated Subsidiaries (528) (457) (1,129) (1,133) ---------- ---------- ---------- ---------- NET EARNINGS BEFORE EXTRAORDINARY GAIN 89,879 52,656 179,311 123,054 ---------- ---------- ---------- ---------- Extraordinary Gain on Sale of Subsidiary, net of Income Taxes of $808,758 -- 1,377,075 -- 1,377,075 ---------- ---------- ---------- ---------- NET EARNINGS $ 89,879 $1,429,731 $ 179,311 $1,500,129 Net Earnings Per Share Before Extraordinary Gain $0.51 $0.30 $1.02 $0.70 Extraordinary Gain Per Share -- 7.85 -- 7.86 ---------- ---------- ---------- ---------- Net Earnings Per Share $0.51 $8.15 $1.02 $8.56 Weighted Average Number of Common Shares Outstanding 176,304 175,490 176,390 175,160
UNITED HEALTHCARE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
JUNE 30, 1995 DECEMBER 31, 1994 ------------- ----------------- (UNAUDITED) ASSETS Cash and Short-term Investments $1,031,172 $1,654,336 Other Current Assets 272,943 253,879 Long-Term Investments 1,456,333 1,115,054 Other Long Term Assets 995,538 466,210 ---------- ---------- TOTAL ASSETS $3,755,986 $3,489,479 LIABILITIES AND SHAREHOLDERS' EQUITY Medical Services Payables $ 473,612 $ 443,559 Other Current Liabilities 230,051 220,743 Long-term Obligations 20,545 24,275 TOTAL LIABILITIES 724,208 688,577 Minority Interests 6,374 5,446 Shareholders' Equity 3,025,404 2,795,456 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,755,986 $3,489,479
UNITED HEALTHCARE CORPORATION EARNINGS REPORT* (In thousands, except per share data)
Three Months Ended June 30, 1995 June 30, 1994 ------------- ------------- Revenues $1,157,945 $ 939,465 Net earnings before extraordinary gain $ 89,879 52,656 Extraordinary gain on sale of subsidiary -- 1,377,075 Net earnings 89,879 $1,429,731 Net earnings per share before extraordinary gain $ 0.51 $ 0.30* Extraordinary gain per share -- 7.85 Net earnings per share $ 0.51 $ 8.15 Average number of common shares outstanding 176,304 175,490 Six Months Ended June 30, 1995 June 30, 1994 ------------- ------------- Revenues $2,261,780 $1,843,021 Net earnings before extraordinary gain $ 179,311 $ 123,054 Extraordinary gain on sale of subsidiary -- 1,377,075 Net earnings $ 179,311 $1,500,129 Net earnings per share before extraordinary gain $ 1.02 $ 0.70* Extraordinary gain per share -- 7.86 Net earnings per share $ 1.02 $ 8.56 Average number of common shares outstanding 176,390 175,160
*The financial information for the three and six months ended June 30, 1994, has been restated to include the results of Ramsay-HMO, Inc. and Complete Health Services, Inc. in accordance with pooling of interests accounting. Excluding the nonrecurring, non-operating costs of $35.9 million associated with the Ramsay and Complete mergers, net earnings before extraordinary gain for the three and six months ended June 30, 1994 would have been $74,939 and $145,337, respectively, or $0.43 and $0.83 per share. EX-99.2 3 SUPP. FINANCIAL SCHEDULE EXHIBIT 99.2 SCHEDULE A UNITED HEALTHCARE CORPORATION QUARTERLY ANALYSIS FOR THE QUARTER ENDED 06/30/95 (Unaudited) (000's)
% CHANGE 3 MONTHS ENDED % 3 MONTHS ENDED % 06/30/94 to REVENUES: 06/30/95 (4) REVENUE 06/30/94 REVENUE 06/30/95 -------------- ------- -------------- ------- ----------- PREMIUM ........................................... $1,048,773 90.6% $ 835,702 89.0% 25.5% MANAGEMENT SERVICES ............................... 68,749 5.9% 77,552 8.2% -11.4% INVESTMENT INCOME.................................. 40,423 3.5% 26,211 2.8% 54.2% ---------- ------ ---------- ------ ------ TOTAL REVENUES .................................. 1,157,945 100.0% 939,465 100.0% 23.3% ---------- ------ ---------- ------ ------ OPERATING EXPENSES: MEDICAL COSTS (1) ................................. 824,161 78.6%(1) 652,266 78.1%(1) 26.4% SELLING, GENERAL & ADMINISTRATION ................. 169,519 14.6% 148,168 15.8% 14.4% DEPRECIATION & AMORTIZATION ....................... 20,384 1.8% 16,378 1.7% 24.5% ---------- ------ ---------- ------ ------ TOTAL OPERATING EXPENSES ........................ 1,014,064 87.6% 816,812 86.9% 24.1% ---------- ------ ---------- ------ ------ EARNINGS FROM OPERATIONS .............................. 143,881 12.4% 122,653 13.1% 17.3% INTEREST EXPENSE ...................................... (378) (569) -33.6% MERGER COSTS (2) ...................................... -- (35,940)(2) ---------- ---------- EARNINGS BEFORE INCOME TAXES AND MINORITY INTERESTS AND EXTRAORDINARY GAIN .................... 143,503 86,144 66.6% PROVISION FOR INCOME TAXES ............................ (53,096) (33,031) 60.7% MINORITY INTERESTS .................................... (528) (457) 15.5% ---------- ---------- NET EARNINGS BEFORE EXTRAORDINARY GAIN ................ 89,879 52,656 (2) 70.7% EXTRAORDINARY GAIN ON SALE OF SUBSIDIARY, NET OF INCOME TAXES OF $808,758 (3).................. -- 1,377,075 (3) ---------- ---------- NET EARNINGS .......................................... $ 89,879 1,429,731 ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: 176,304 175,490 ========== ========== EARNINGS PER SHARE: NET EARNINGS BEFORE EXTRAORDINARY GAIN (2) $ 0.51 0.30 (2) EXTRAORDINARY GAIN (3) -- 7.85 (3) ---------- ---------- NET EARNINGS PER SHARE $ 0.51 8.15 ========== ========== % CHANGE 6 MONTHS ENDED % 6 MONTHS ENDED % 06/30/94 to REVENUES: 06/30/95 (4) REVENUE 06/30/94 REVENUE 06/30/95 -------------- ------- -------------- ------- ----------- PREMIUM ........................................... $2,053,262 90.8% 1,640,693 89.0% 25.1% MANAGEMENT SERVICES ............................... 133,973 5.9% 158,974 8.6% -15.7% INVESTMENT INCOME.................................. 74,545 3.3% 43,354 2.4% 71.9% ---------- ------ ---------- ------ ------ TOTAL REVENUES .................................. 2,261,780 100.0% 1,843,021 100.0% 22.7% ---------- ------ ---------- ------ ------ OPERATING EXPENSES: MEDICAL COSTS (1) ................................. 1,607,662 78.3%(1) 1,281,844 78.1%(1) 25.4% SELLING, GENERAL & ADMINISTRATION ................. 327,097 14.5% 291,534 15.8% 12.2% DEPRECIATION & AMORTIZATION ....................... 40,049 1.8% 32,281 1.8% 24.1% ---------- ------ ---------- ------ ------ TOTAL OPERATING EXPENSES ........................ 1,974,808 87.3% 1,605,659 87.1% 23.0% ---------- ------ ---------- ------ ------ EARNINGS FROM OPERATIONS .............................. 286,972 12.7% 237,362 12.9% 20.9% INTEREST EXPENSE ...................................... (558) (1,137) -50.9% MERGER COSTS (2) ...................................... -- (35,940)(2) ---------- ---------- ------ EARNINGS BEFORE INCOME TAXES AND MINORITY INTERESTS AND EXTRAORDINARY GAIN .................... 286,414 200,285 43.0% PROVISION FOR INCOME TAXES ............................ (105,974) (76,098) 39.3% MINORITY INTERESTS .................................... (1,129) (1,133) -0.4% ---------- ---------- ------ NET EARNINGS BEFORE EXTRAORDINARY GAIN ................ 179,311 123,054 (2) 45.7% EXTRAORDINARY GAIN ON SALE OF SUBSIDIARY, NET OF INCOME TAXES OF $808,758 (3).................. -- 1,377,075 (3) ---------- ---------- NET EARNINGS .......................................... $ 179,311 $1,500,129 ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: 176,390 175,160 ========== ========== EARNINGS PER SHARE: NET EARNINGS BEFORE EXTRAORDINARY GAIN (2) $ 1.02 $ 0.70 (2) EXTRAORDINARY GAIN (3) -- 7.86 (3) ---------- ---------- NET EARNINGS PER SHARE $ 1.02 $ 8.56 ========== ==========
Note: All periods presented have been restated to include the results of Ramsay HMO Inc., and Complete Health Services Inc. in accordance with pooling of interests accounting. The Ramsay and Complete mergers occurred on May 31, 1994. (1) Ratio of medical costs to premium revenue. Ratio includes health plans and United Behavioral Systems. (2) Second quarter 1994 merger costs include professional fees and other direct costs associated with the May, 1994 merger of United HealthCare Corporation and Ramsay HMO Inc., & Complete Health Services Inc. These costs were $35.9 million before tax, $22.3 million after tax, and reduced net earnings per share before extraordinary gain by $.13. (3) On May 27, 1994, the Company completed the sale of its subsidiary Diversified Pharmaceutical Services to SmithKline Beecham for $2.3 billion, resulting in a net after tax gain of $1.38 billion or $7.85 EPS for the quarter. Post disposition results of DPS are not included. (4) Includes post acquisition operating results of GenCare Health Systems, Inc. acquired on January 3, 1995 and Group Sales and Service of Puerto Rico, Inc. acquired on February 28, 1995.
SCHEDULE B UNITED HEALTHCARE CORPORATION QUARTERLY TREND ANALYSIS (Unaudited) (000's) % CHG FROM 2ND QTR % 3RD QTR % 2ND QTR 4TH QTR 1994 REVENUE 1994 REVENUE 1994 1994 ---------- ------- -------- ------- ---------- -------- REVENUES: PREMIUM..................................... $ 835,702 89.0% $858,228 89.7% 2.7% $877,317 MANAGEMENT SERVICES......................... 77,552 8.2% 59,820 6.3% -22.9% 55,822 INVESTMENT INCOME........................... 26,211 2.8% 38,786 4.0% 48.0% 35,888 ---------- ------- -------- ------- ---------- -------- TOTAL REVENUES.............................. 939,465 100.0% 956,834 100.0% 1.8% 969,027 ---------- ------- -------- ------- ---------- -------- OPERATING EXPENSES: MEDICAL COSTS (1) .......................... 652,266 78.1%(1) 675,650 78.7%(1) 3.6% 685,613 SELLING, GENERAL & ADMIN.................... 148,168 15.8% 133,462 13.9% -9.9% 130,653 DEPRECIATION & AMORT........................ 16,378 1.7% 16,258 1.7% -0.7% 15,540 ---------- ------- -------- ------- ---------- -------- TOTAL OPERATING EXPENSES.................... 816,812 86.9% 825,370 86.3% 1.0% 831,806 ---------- ------- -------- ------- ---------- -------- EARNINGS FROM OPERATIONS....................... 122,653 13.1% 131,464 13.7% 7.2% 137,221 INTEREST EXPENSE............................... (569) (413) -27.4% (613) MERGER COSTS (2) ............................. (35,940)(2) ---- ---- ---- ---------- -------- ---------- -------- EARNINGS BEFORE INCOME TAXES, MINORITY INTERESTS AND EXTRAORDINARY GAIN.............. 86,144 131,051 52.1% 136,608 PROVISION FOR INCOME TAXES..................... (33,031) (49,810) 50.8% (51,914) MINORITY INTERESTS............................. (457) (399) ---- (451) ---------- -------- ---------- -------- NET EARNINGS BEFORE EXTRAORDINARY GAIN 52,656 (2) 80,842 See Note (2) 84,243 EXTRAORDINARY GAIN ON SALE OF SUBSIDIARY, NET OF INCOME TAXES OF $808,758 (3).......... 1,377,075 (3) ---- ---- ---------- -------- -------- NET EARNINGS .................................. $1,429,731 $ 80,842 $ 84,243 ========== ======== ======== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: 175,490 176,038 0.3% 176,573 ========== ======== ========= ======== EARNINGS PER SHARE: NET EARNINGS BEFORE EXTRAORDINARY GAIN (2) $ 0.30 (2) $ 0.46 See Note (2) $ 0.48 EXTRAORDINARY GAIN (3) 7.85 (3) ---- ---- ---------- -------- -------- NET EARNINGS PER SHARE $ 8.15 $ 0.46 $ 0.48 ========== ======== ======== % CHG FROM % CHG FROM % 3RD QTR 1ST QTR % 4TH QTR REVENUE 1994 1995 (4) REVENUE 1994 ------- ---------- -------- ------- ---------- REVENUES: PREMIUM..................................... 90.5% 2.2% $1,004,489 91.0% 14.5% MANAGEMENT SERVICES ........................ 5.8% -6.7% 65,224 5.9% 16.8% INVESTMENT INCOME........................... 3.7% -7.5% 34,122 3.1% -4.9% ------- ---------- ---------- ------- ---------- TOTAL REVENUES.............................. 100.0% 1.3% 1,103,835 100.0% 13.9% ------- ---------- ---------- ------- ---------- OPERATING EXPENSES: MEDICAL COSTS (1) .......................... 78.1%(1) 1.5% 783,501 78.0%(1) 14.3% SELLING, GENERAL & ADMIN.................... 13.5% -2.1% 157,578 14.3% 20.6% DEPRECIATION & AMORT........................ 1.6% -4.4% 19,665 1.8% 26.5% ------- ---------- ---------- ------- ---------- TOTAL OPERATING EXPENSES.................... 85.8% 0.8% 960,744 87.0% 15.5% ------- ---------- ---------- ------- ---------- EARNINGS FROM OPERATIONS....................... 14.2% 4.4% 143,091 13.0% 4.3% INTEREST EXPENSE............................... 48.4% (180) -70.6% MERGER COSTS (2) ............................. ---- ---- ---- ---------- ---------- ---------- EARNINGS BEFORE INCOME TAXES, MINORITY INTERESTS AND EXTRAORDINARY GAIN.............. 4.2% 142,911 4.6% PROVISION FOR INCOME TAXES..................... 4.2% (52,878) 1.9% MINORITY INTERESTS............................. ---- (601) ---- ---------- ---------- ---------- NET EARNINGS BEFORE EXTRAORDINARY GAIN 4.2% 89,432 6.2% EXTRAORDINARY GAIN ON SALE OF SUBSIDIARY, NET OF INCOME TAXES OF $808,758 (3).......... ---- ---------- NET EARNINGS................................... 4.2% $ 89,432 6.2% ========== ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: 0.3% 176,403 -0.1% ========== ========== ========== EARNINGS PER SHARE: NET EARNINGS BEFORE EXTRAORDINARY GAIN (2) 4.3% $ 0.51 6.3% EXTRAORDINARY GAIN (3) ---- ---------- NET EARNINGS PER SHARE $ 0.51 ========== % CHG FROM 2ND QTR % 1ST QTR 1995 (4) REVENUE 1995 -------- ------- ---------- REVENUES: PREMIUM..................................... $1,048,773 90.6% 4.4% MANAGEMENT SERVICES ........................ 68,749 5.9% 5.4% INVESTMENT INCOME........................... 40,423 3.5% 18.5% ---------- ------- ---------- TOTAL REVENUES.............................. 1,157,945 100.0% 4.9% ---------- ------- ---------- OPERATING EXPENSES: MEDICAL COSTS (1) .......................... 824,161 78.6%(1) 5.2% SELLING, GENERAL & ADMIN.................... 169,519 14.6% 7.6% DEPRECIATION & AMORT........................ 20,384 1.8% 3.7% ---------- ------- ---------- TOTAL OPERATING EXPENSES.................... 1,014,064 87.6% 5.5% ---------- ------- ---------- EARNINGS FROM OPERATIONS....................... 143,881 12.4% 0.6% INTEREST EXPENSE............................... (378) 110.0% MERGER COSTS (2)............................... ---- ---- ---------- ---------- EARNINGS BEFORE INCOME TAXES, MINORITY INTERESTS AND EXTRAORDINARY GAIN.............. 143,503 0.4% PROVISION FOR INCOME TAXES..................... (53,096) 0.4% MINORITY INTERESTS............................. (528) ---- ---------- ---------- NET EARNINGS BEFORE EXTRAORDINARY GAIN 89,879 0.5% EXTRAORDINARY GAIN ON SALE OF SUBSIDIARY, NET OF INCOME TAXES OF $808,758 (3).......... ---- ---------- NET EARNINGS .................................. $ 89,879 0.5% ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: 176,304 -0.1% ========== ========== EARNINGS PER SHARE: NET EARNINGS BEFORE EXTRAORDINARY GAIN (2) $ 0.51 0.0% EXTRAORDINARY GAIN (3) ---- ---------- NET EARNINGS PER SHARE $ 0.51 ========== Note: All periods presented have been restated to include the results of Ramsay HMO Inc., and Complete Health Services Inc. in accordance with pooling of interests accounting. The Ramsay and Complete mergers occurred on May 31, 1994. (1) Ratio of medical costs to premium revenue. Ratio includes health plans and United Behavioral Systems. (2) Second quarter 1994 merger costs include professional fees and other direct costs associated with the May, 1994 merger of United HealthCare Corporation and Ramsay HMO Inc., & Complete Health Services Inc. These costs were $35.9 million on before tax, $22.3 million after tax, and reduced net earnings per share before extraordinary gain by $.13. (3) On May 27, 1994, the Company completed the sale of its subsidiary Diversified Pharmaceutical Services to SmithKline Beecham for $2.3 billion, resulting in a net after tax gain of $1.38 billion or $7.85 EPS for the quarter. Post disposition results of DPS are not included. (4) Includes post acquisition operating results of GenCare Health Systems, Inc. acquired on January 3, 1995 and Group Sales and Service of Puerto Rico, Inc. acquired on February 28, 1995.
SCHEDULE C UNITED HEALTHCARE CORPORATION QUARTERLY ANALYSIS FOR THE QUARTER ENDED 06/30/95 LINE OF BUSINESS SUMMARY (Unaudited) (000's) % CHANGE 3 MONTHS ENDED % 3 MONTHS ENDED % 06/30/94 TO 06/30/95(1) OF TOTAL 06/30/94 OF TOTAL 06/30/95 -------------- -------- -------------- -------- ----------- REVENUES OWNED HEALTH PLANS $1,047,298 90.4% $ 831,819 88.5% 25.9% MANAGED HEALTH PLAN AND SPECIALTY SERVICES 100,212(2) 8.7% 133,892(2) 14.3% -25.2%(2) CORPORATE, ELIMINATIONS AND OTHER 10,435 0.9% (26,246) -2.8% ---- ---------- -------- ---------- -------- ----------- TOTAL REVENUE $1,157,945 100.0% $ 939,465 100.0% 23.3% ========== ======== ========== ======== =========== OPERATING INCOME OWNED HEALTH PLANS $ 101,647 70.7% $ 85,231 69.5% 19.3% MANAGED HEALTH PLAN AND SPECIALTY SERVICES 18,631(2) 12.9% 19,687 16.0% -5.4%(2) CORPORATE, ELIMINATIONS AND OTHER 23,603 16.4% 17,735 14.5% ---- ---------- -------- ---------- -------- ----------- TOTAL OPERATING INCOME $ 143,881 100.0% $ 122,653 100.0% 17.3% ========== ======== ========== ======== =========== OPERATING MARGIN OWNED HEALTH PLANS 9.7% 10.2% MANAGED HEALTH PLAN AND SPECIALTY SERVICES 18.6% 14.7% ---------- ---------- TOTAL OPERATING MARGIN 12.4% 13.1% ========== ========== % CHANGE 6 MONTHS ENDED % 6 MONTHS ENDED % 06/30/94 to 06/30/95(1) OF TOTAL 06/30/94 OF TOTAL 06/30/95 -------------- -------- -------------- -------- ----------- REVENUES OWNED HEALTH PLANS $2,053,080 90.8% $1,635,070 88.7% 25.6% MANAGED HEALTH PLAN AND SPECIALTY SERVICES 193,024(2) 8.5% 283,716(2) 15.4% -32.0%(2) CORPORATE, ELIMINATIONS AND OTHER 15,676 0.7% (75,765) -4.1% ---- ---------- -------- ---------- -------- ----------- TOTAL REVENUE $2,261,780 100.0% $1,843,021 100.0% 22.7% ========== ======== ========== ======== =========== OPERATING INCOME OWNED HEALTH PLANS $ 208,792 72.8% $ 167,882 70.7% 24.4% MANAGED HEALTH PLAN AND SPECIALTY SERVICES 35,807(2) 12.5% 43,130 18.2% -17.0%(2) CORPORATE, ELIMINATIONS AND OTHER 42,373 14.7% 26,350 11.1% ---- ---------- -------- ---------- -------- ----------- TOTAL OPERATING INCOME $ 286,972 100.0% $ 237,362 100.0% 20.9% ========== ======== ========== ======== =========== OPERATING MARGIN OWNED HEALTH PLANS 10.2% 10.3% MANAGED HEALTH PLAN AND SPECIALTY SERVICES 18.6% 15.2% ---------- ---------- TOTAL OPERATING MARGIN 12.7% 12.9% ========== ==========
Note: All periods presented have been restated to include the results of Ramsay HMO Inc., and Complete Health Services Inc. in accordance with pooling of interests accounting. The Ramsay and Complete mergers occurred on May 31, 1994. (1) Includes post acquisition operating results of GenCare Health Systems, Inc. acquired on January 3, 1995 and Group Sales and Service of Puerto Rico, Inc. acquired on February 28, 1995. (2) Excludes the post disposition results of Diversified Pharmaceutical Services, which was sold on May 27, 1994. SCHEDULE D UNITED HEALTHCARE CORPORATION LINE OF BUSINESS SUMMARY - HISTORY (000's)
1994 ---------------------------------------------------------------------------------------- 2ND QTR % OF 3RD QTR % OF % CHG FROM 4TH QTR % OF % CHG FROM REVENUES TOTAL TOTAL 2ND QTR 94 TOTAL 3RD QTR 94 - -------- ---------------------------------------------------------------------------------------- OWNED HEALTH PLANS $ 831,819 88.5% $ 852,746 89.1% 2.5% $ 870,730 89.9% 2.1% MANAGED HEALTH PLAN AND SPECIALTY SERVICES (1) 133,892(1) 14.3% 86,392(1) 9.0% -35.5% 86,001(1) 8.9% -0.5% CORPORATE, ELIMINATIONS AND OTHER (26,246) -2.8% 17,696 1.9% -- 12,296 1.2% -- ---------------------------------------------------------------------------------------- TOTAL REVENUE $ 939,465 100.0% $ 956,834 100.0% 1.8% $ 969,027 100.0% 1.3% ======================================================================================== OPERATING INCOME - ---------------- OWNED HEALTH PLANS $ 85,231 69.5% $ 88,141 67.0% 3.4% $ 96,038 70.0% 9.0% MANAGED HEALTH PLAN AND SPECIALTY SERVICES (1) 19,687(1) 16.0% 14,242(1) 10.9% -27.7% 14,622(1) 10.7% 2.7% CORPORATE, ELIMINATIONS AND OTHER 17,735 14.5% 29,081 22.1% -- 26,561 19.3% -- TOTAL OPERATING INCOME $ 122,653 100.0% $ 131,464 100.0% 7.2% $ 137,221 100.0% 4.4% OPERATING MARGIN - ---------------- OWNED HEALTH PLANS 10.2% 10.3% 11.0% MANAGED HEALTH PLAN AND SPECIALTY SERVICES (1) 14.7%(1) 16.5%(1) 17.0%(1) ---- ---- ---- TOTAL OPERATING MARGIN 13.1% 13.7% 14.2% ==== ==== ==== FOR INFORMATION PURPOSES ONLY - ----------------------------- INVESTMENT INCOME INCLUDED IN LINE OF BUSINESS ABOVE: OWNED HEALTH PLANS $ 8,471 $ 8,447 -0.3% $ 9,906 17.3% CORPORATE, ELIMINATIONS AND OTHER 17,740 30,339 71.0% 25,982 -14.4% ---------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 26,211 $ 38,786 48.0% $ 35,888 -7.5% ======================================================================================== RATIOS - ------ COMBINED SG & A RATIO (2) 10.9% 10.6% 10.3% HEALTH PLAN MEDICAL LOSS RATIO (3) 79.1% 79.4% 79.1%
1995 1ST QTR % OF % CHG FROM 2ND QTR % OF % CHG FROM % CHG FROM REVENUES TOTAL 4TH QTR 94 TOTAL 1ST QTR 95 2ND QTR 94 - -------- ------------------------------------------------------------------------------------ OWNED HEALTH PLANS $ 1,005,782(4) 91.1% 15.5% $ 1,047,298(4) 90.4% 4.1% 25.9% MANAGED HEALTH PLAN AND SPECIALTY SERVICES (1) 92,812(1) 8.4% 7.9% 100,212(1) 8.7% 8.0% -25.2% CORPORATE, ELIMINATIONS AND OTHER 5,241 0.5% -- 10,435 0.9% -- -- ------------------------------------------------------------------------------------ TOTAL REVENUE $ 1,103,835 100.0% 13.9% $ 1,157,945 100.0% 4.9% 23.3% ==================================================================================== OPERATING INCOME - ---------------- OWNED HEALTH PLANS $ 107,145(4) 74.9% 11.6% $ 101,647(4) 70.7% -5.1% 19.3% MANAGED HEALTH PLAN AND SPECIALTY SERVICES (1) 17,176(1) 12.0% 17.5% 18,631(1) 12.9% 8.5% -5.4% CORPORATE, ELIMINATIONS AND OTHER 18,770 13.1% -- 23,603 16.4% -- -- ------------------------------------------------------------------------------------ TOTAL OPERATING INCOME $ 143,091 100.0% 4.3% $ 143,881 100.0% 0.6% 17.3% ==================================================================================== OPERATING MARGIN - ---------------- OWNED HEALTH PLANS 10.7% 9.7% MANAGED HEALTH PLAN AND SPECIALTY SERVICES (1) 18.5%(1) 18.6%(1) ---- ---- TOTAL OPERATING MARGIN 13.0% 12.4% ==== ==== FOR INFORMATION PURPOSES ONLY - ----------------------------- INVESTMENT INCOME INCLUDED IN LINE OF BUSINESS ABOVE: OWNED HEALTH PLANS $ 12,387 25.0% $ 13,322 7.5% 57.3% CORPORATE, ELIMINATIONS AND OTHER 21,735 -16.3% 27,101 24.7% 52.8% ------------------------------------------------------------------------------------ TOTAL INVESTMENT INCOME $ 34,122 -4.9% $ 40,423 18.5% 54.2% ==================================================================================== RATIOS - ------ COMBINED SG & A RATIO (2) 10.8% 11.0% HEALTH PLAN MEDICAL LOSS RATIO (3) 78.9% 79.4%
Note: All periods presented have been restated to include the results of Ramsay HMO Inc., and Complete Health Services Inc. in accordance with pooling of interests accounting. The Ramsay and Complete mergers occurred on May 31, 1994. (1) Excludes the post disposition results of Diversified Pharmaceutical Services, which was sold on May 27, 1994. (2) Total selling, general & administrative expense for Owned and Managed Health Plans as a percent of combined premium revenue for Owned and Managed Health Plans. (3) Ratio for owned health plans only. (4) Includes post acquisition operating results of GenCare Health Systems, Inc. acquired on January 3, 1995 and Group Sales and Service of Puerto Rico, Inc. acquired on February 28, 1995. SCHEDULE E UNITED HEALTHCARE CORPORATION QUARTERLY ANALYSIS BALANCE SHEET (Unaudited) (000's)
SUMMARY BALANCE SHEET 12/31/91 12/31/92(1) 03/31/93(2) 06/30/93 09/30/93 12/31/93 - --------------------- -------- ----------- ----------- ---------- ---------- ---------- CASH & SHORT-TERM INVESTMENTS $341,404 $ 411,716 $ 340,737 $ 263,282 $ 238,121 $ 400,870 OTHER CURRENT ASSETS 103,253 125,780 172,342 198,358 197,715 213,098 LONG-TERM INVESTMENTS 174,770 511,860 586,627 691,210 762,939 768,563 OTHER LONG-TERM ASSETS 182,046 271,818 365,295 372,045 376,214 404,823 -------- ---------- ---------- ---------- ---------- ---------- TOTAL ASSETS $801,473 $1,321,174 $1,465,001 $1,524,895 $1,574,989 $1,787,354 ======== ========== ========== ========== ========== ========== MEDICAL SERVICES PAYABLE $223,741 $ 328,592 $ 391,625 $ 398,587 $ 401,578 $ 459,201 UNEARNED PREMIUMS 42,343 60,808 30,308 32,293 20,456 70,844 OTHER CURRENT LIABILITIES/ INCOME TAXES PAYABLE 64,603 81,240 126,987 122,879 121,025 128,689 TAXES PAYABLE - GAIN ON SALE OF SUBSIDIARY -- -- -- -- -- -- OTHER LONG-TERM LIABILITIES 41,649 24,132 42,044 41,032 40,095 39,099 -------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES 372,336 494,772 590,964 594,791 583,154 697,833 MINORITY INTERESTS 2,341 3,499 4,103 3,091 3,536 4,111 SHAREHOLDERS' EQUITY 426,796 822,903 869,934 927,013 988,299 1,085,410 -------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES & EQUITY $801,473 $1,321,174 $1,465,001 $1,524,895 $1,574,989 $1,787,354 ======== ========== ========== ========== ========== ==========
SUMMARY BALANCE SHEET 03/31/94 06/30/94(3) 09/30/94 12/31/94 03/31/95(4) 06/30/95 - --------------------- ----------- ----------- ---------- ---------- ----------- ---------- CASH & SHORT-TERM INVESTMENTS $ 377,628 $2,347,177 $1,843,727 $1,654,336 $ 945,073 $1,031,172 OTHER CURRENT ASSETS 231,924 238,019 218,874 253,879 276,678 272,943 LONG-TERM INVESTMENTS 814,844 1,032,524 1,020,897 1,115,054 1,488,750 1,456,333 OTHER LONG-TERM ASSETS 460,127 448,672 445,559 466,210 990,330 995,538 ---------- ---------- ---------- ---------- ---------- ---------- TOTAL ASSETS $1,884,523 $4,066,392 $3,529,057 $3,489,479 $3,700,831 $3,755,986 ========== ========== ========== ========== ========== ========== MEDICAL SERVICES PAYABLE $ 455,627 $ 441,043 $ 437,174 $ 443,559 $ 479,027 473,612 UNEARNED PREMIUMS 76,174 31,018 68,300 70,718 87,911 93,534 OTHER CURRENT LIABILITIES/ INCOME TAXES PAYABLE 149,624 155,466 120,899 134,025 199,186 136,517 TAXES PAYABLE - GAIN ON SALE OF SUBSIDIARY -- 808,758 171,758 16,000 -- -- OTHER LONG-TERM LIABILITIES 38,259 27,123 23,956 24,275 25,142 20,545 ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES 719,684 1,463,428 822,087 688,577 791,266 724,208 MINORITY INTERESTS 4,788 5,048 5,197 5,446 5,846 6,374 SHAREHOLDERS' EQUITY 1,160,051 2,597,916 2,701,773 2,795,456 2,903,719 3,025,404 ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES & EQUITY $1,884,523 $4,066,392 $3,529,057 $3,489,479 $3,700,831 $3,755,986 ========== ========== ========== ========== ========== ==========
Note: All periods presented have been restated to include the results of HMO America, Inc., Ramsay HMO Inc., and Complete Health Services Inc. in accordance with pooling of interests accounting. UHC and HMO America merged on August 31, 1993. The Ramsay and Complete mergers occurred on May 31, 1994. (1) Physicians Health Plan of Ohio, Inc. (Columbus, OH) was acquired in January, 1992. Also, the Company completed a public offering of 5,000,000 shares of common stock in March, 1992, raising net proceeds of approximately $196,000,000. (2) Western Ohio HealthCare Corporation (Dayton, OH) was acquired in January, 1993. (3) On May 27, 1994, the Company completed the sale of its subsidiary Diversified Pharmaceutical Services to SmithKline Beecham for $2.3 billion, resulting in a net after tax gain of $1.38 billion or $7.86 EPS. (4) GenCare Health Systems, Inc. (St. Louis) was acquired in January, 1995. Group Sales and Service of Puerto Rico, Inc. was acquired in February, 1995.
SCHEDULE F UNITED HEALTHCARE CORPORATION QUARTERLY TREND ANALYSIS ENROLLMENT % CHANGE % CHANGE DEC JUNE DEC JUNE DEC 94 to JUNE 94 to HEALTH PLANS 1993 1994 1994 1995 (2)(3) JUNE 95 JUNE 95 - ----------------------------------------- ---------- ---------- ---------- ----------- --------- ---------- OWNED (1) - COMMERCIAL INSURED 1,459,000 1,590,000 1,668,000 2,152,000 29.0% 35.3% SELF FUNDED 62,000 117,000 123,000 190,000(2) 54.5%(2) 62.4%(2) ---------- ---------- ---------- ----------- -------- ---------- TOTAL COMMERCIAL 1,521,000 1,707,000 1,791,000 2,342,000 30.8% 37.2% - MEDICARE 98,000 102,000 109,000 125,000 14.7% 22.5% - MEDICAID 239,000 253,000 285,000 313,000 9.8% 23.7% ---------- ---------- ---------- ----------- -------- ---------- TOTAL OWNED ENROLLMENT 1,858,000 2,062,000 2,185,000 2,780,000 27.2% 34.8% MANAGED - COMMERCIAL INSURED 742,000 761,000 796,000 887,000 11.4% 16.6% SELF FUNDED 110,000 125,000 144,000 181,000 25.7% 44.8% ---------- ---------- ---------- ----------- -------- ---------- TOTAL COMMERCIAL 852,000 886,000 940,000 1,068,000 13.6% 20.5% - MEDICARE 79,000 78,000 77,000 76,000 -1.3% -2.6% - MEDICAID 46,000 45,000 47,000 56,000 19.1% 24.4% ---------- ---------- ---------- ----------- -------- ---------- TOTAL MANAGED ENROLLMENT 977,000 1,009,000 1,064,000 1,200,000 12.8% 18.9% TOTAL - COMMERCIAL INSURED 2,201,000 2,351,000 2,464,000 3,039,000 23.3% 29.3% SELF FUNDED 172,000 242,000 267,000 371,000 39.0% 53.3% ---------- ---------- ---------- ----------- -------- ---------- TOTAL COMMERCIAL 2,373,000 2,593,000 2,731,000 3,410,000 24.9% 31.5% - MEDICARE 177,000 180,000 186,000 201,000 8.1% 11.7% - MEDICAID 285,000 298,000 332,000 369,000 11.1% 23.8% ---------- ---------- ---------- ----------- -------- ---------- TOTAL HEALTH PLANS 2,835,000 3,071,000 3,249,000 3,980,000 22.5% 29.6% ========== ========== ========== =========== ======== ========== SPECIALTY MANAGED CARE SERVICES COMPANIES - ----------------------------------------- UNITED BEHAVIORAL SYSTEMS 2,373,000 2,788,000 2,962,000 3,263,000 10.2% 17.0% HEALTHMARC 1,863,000 1,986,000 2,144,000 1,974,000 -7.9% -0.6% UNITED RESOURCE NETWORKS 12,885,000 14,129,000 15,633,000 16,864,000 7.9% 19.4% INSTITUTE FOR HUMAN RESOURCES 2,078,000 2,399,000 2,585,000 2,969,000 14.9% 23.8%
(1) Consistent with pooling accounting, all periods presented have been restated to include the enrollment of Ramsay HMO Inc., and Complete Health Services Inc. The Ramsay and Complete mergers occurred on May 31, 1994. (2) Includes GenCare Health Systems, Inc. acquired on January 3, 1995. GenCare had 236,000 enrollees (including 40,000 self funded enrollees) as of June, 1995. Consistent with purchase accounting, no prior period restatement was made. (3) Includes Group Sales and Service acquired on February 28, 1995: Group Sales and Service had 133,000 enrollees as of June, 1995. Consistent with purchase accounting, no prior restatement was made. -----END PRIVACY-ENHANCED MESSAGE-----