Leading Health Plans Are All Expanding

  Leading Health Plans Are All Expanding

Business Wire

KENNEBUNK, Maine -- November 12, 2012

Total membership for the seven leading U.S. health insurance carriers
increased 1.7 million members for the first half of 2012, for a combined
enrollment of 131.1 million as of June 2012. Commercial, Senior and Medicaid
segments all saw enrollment growth during the first six months of 2012.

Mark Farrah Associates (MFA), a leading provider of market data and
intelligence solutions, found -- profit margins (net income or loss divided by
total revenues) decreased from a combined average of 6.41% for second quarter
2011 to 5.37% for second quarter 2012. Mergers, acquisitions and/or expansion
efforts are prevalent for all of the leading plans and may be the cause of
profitability declines for six of the seven leading plans year-over-year
through the second quarter of 2012. Many of the plans noted special costs
associated with acquisitions as a reason behind the declines. Cigna, Humana
and UnitedHealth completed acquisitions in the first half of 2012. WellPoint
completed its acquisition of CareMore in 2011 and announced plans to acquire
AmeriGroup in July 2012. Aetna acquired Genworth Financials’ Medicare
Supplement business in 2011 and announced plans to acquire Coventry Health
Care in August 2012. HCSC and Blue Cross Blue Shield of Montana announced a
proposed alliance in September 2012, which will enable BCBS Montana to become
part of HCSC. Kaiser, which has not announced any acquisitions, is in the
process of building new facilities which will expand its footprint in many of
its markets.

In the latest Healthcare Business Strategy report, MFA reviewed enrollment and
financial trends for Aetna, Cigna, Health Care Service Corporation (HCSC),
Humana, Kaiser Permanente, UnitedHealth Group and WellPoint. Membership data,
financial statistics and observations were gleaned from the October 2012
Health Insurer Insights™ series, a Mark Farrah Associates publication. To read
the full text of "Top Health Plans Expanding," visit the Analysis Briefs
library on Mark Farrah Associates' website www.markfarrah.com.

About Mark Farrah Associates (MFA)

MFA is a leading data aggregator and publisher providing health plan market
data and analysis tools for the healthcare industry. Committed to simplifying
analysis of health insurance business, our products include Health Coverage
Portal™, County Health Coverage™, Health Insurer Insights™, Medicare Business
Online™, Medicare Benefits Analyzer™ and Health Plans USA™.


Mark Farrah Associates
Debra Donahue, 207-985-8484
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