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As Of Filer Filing For·On·As Docs:Size 7/28/20 Centene Corp 8-K:2,9 7/28/20 13:973K |
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Exhibit |
Total
revenues (in millions) | $ | 27,712 | |
Health benefits ratio | 82.1 | % | |
SG&A expense ratio | 8.8 | % | |
Adjusted SG&A expense ratio (1) | 8.5 | % | |
GAAP
diluted EPS | $ | 2.05 | |
Adjusted Diluted EPS (1) | $ | 2.40 | |
Total cash flow provided by operations (in millions) | $ | 3,714 | |
(1)
A full reconciliation of the Adjusted SG&A expense ratio and Adjusted Diluted EPS are shown on pages six and seven of this release. |
• | June 30, 2020 managed care membership of 24.6 million, an increase of 9.6 million members, or 64%, over June 30, 2019. |
• | Total
revenues of $27.7 billion for the second quarter of 2020, representing 51% growth compared to the second quarter of 2019. |
• | Health benefits ratio (HBR) of 82.1% for the second quarter of 2020, compared to 86.7% in the second
quarter of 2019. |
• | Selling, general and administrative (SG&A) expense ratio of 8.8% for the second quarter of 2020, compared to 9.1% for the second quarter of 2019. |
• | Adjusted
SG&A expense ratio of 8.5% for the second quarter of 2020, compared to 9.0% for the second quarter of 2019. |
• | Diluted EPS for the second quarter of 2020 of $2.05, compared to $1.18 for the second
quarter of 2019. |
• | Adjusted Diluted EPS for the second quarter of 2020 of $2.40, compared to $1.34 for the second quarter of 2019. |
• | Operating
cash flow of $3.7 billion for the second quarter 2020, representing 3.1x net earnings. |
• | In July 2020, Centene announced that it will establish an East Coast headquarters in Charlotte, North Carolina. The Company expects to begin construction on the new campus in August and plans to create 3,200 new jobs, with eventual accommodations
for up to 6,000 employees, and invest $1 billion in the Charlotte community over time. |
• | In July 2020, Centene's subsidiary, Meridian Health Plan of Illinois, Inc. (Meridian), began serving Medicaid members in Cook County, Illinois as a result of a Member Transfer Agreement under which Meridian was assigned 100% of NextLevel Health Partners, Inc.'s approximately 54,000 members who access benefits from the Illinois Department of Healthcare and Family Services' HealthChoice Illinois Program. |
• | In
July 2020, Centene's subsidiary, Centurion, commenced a two-year contract with the Kansas Department of Administration to provide healthcare services in the Department of Corrections’ facilities. |
• | In June 2020, Centene's subsidiary, WellCare of Kentucky, was selected by the state of Kentucky to continue serving the Commonwealth's Medicaid managed care program statewide. The new four-year contract is anticipated to begin on January 1, 2021 running through December
31, 2024 with the option for six, two-year renewal extensions. |
• | In July 2020, for the third consecutive year, Centene was recognized with a 100 percent score on the Disability Equality Index (DEI) as one of the Best Places to Work for People with Disabilities. |
• | In July 2020, Forbes announced Centene's position
of #14 on its Corporate Responders list, which assesses how well the 100 largest publicly-held companies in the U.S. have responded to COVID-19. |
• | In June 2020, Centene's subsidiary, Envolve Dental, earned Accreditation from the National Committee for Quality Assurance (NCQA). |
• | In May 2020, FORTUNE announced Centene's position of #42 in its annual ranking of America's largest companies based on 2019 revenue. |
• | In
April 2020, several Centene health plans earned Accreditation from NCQA, including Ambetter from Arkansas Health and Wellness, Sunflower Health Plan and QualChoice Health Insurance. |
2020 | 2019 | ||||
Medicaid: | |||||
TANF,
CHIP & Foster Care | 10,894,200 | 7,388,700 | |||
ABD & LTSS | 1,496,000 | 997,900 | |||
Behavioral Health | 173,900 | 68,800 | |||
Total
Medicaid | 12,564,100 | 8,455,400 | |||
Medicare PDP | 4,443,100 | — | |||
Commercial | 2,763,300 | 2,449,400 | |||
Medicare (1) | 996,100 | 398,500 | |||
International | 600,400 | 463,100 | |||
Correctional | 166,000 | 153,900 | |||
Total
at-risk membership | 21,533,000 | 11,920,300 | |||
TRICARE eligibles | 2,864,700 | 2,855,800 | |||
Non-risk membership | 223,300 | 228,100 | |||
Total | 24,621,000 | 15,004,200 | |||
(1)
Membership includes Medicare Advantage, Medicare Supplement, Special Needs Plans, and Medicare-Medicaid Plans (MMP). |
2020 | 2019 | ||||
Dual-eligible (2)
| 969,700 | 600,800 | |||
Health Insurance Marketplace | 2,245,600 | 1,910,700 | |||
Medicaid Expansion | 1,931,600 | 1,290,200 | |||
(2)
Membership includes dual-eligible ABD & LTSS and dual-eligible Medicare. |
Three Months Ended June 30, | ||||||||||
2020 | 2019 | %
Change | ||||||||
Medicaid | $ | 18,129 | $ | 12,119 | 50 | % | ||||
Commercial | 4,136 | 3,872 | 7 | % | ||||||
Medicare
(3) | 3,538 | 1,465 | 142 | % | ||||||
Medicare PDP | 674 | — | n.m. | |||||||
Other | 1,235 | 900 | 37 | % | ||||||
Total
Revenues | $ | 27,712 | $ | 18,356 | 51 | % | ||||
(3) Medicare
includes Medicare Advantage, Medicare Supplement, Special Needs Plans, and MMP. | ||||||||||
n.m.: not meaningful |
• | For
the second quarter of 2020, total revenues increased 51% to $27.7 billion from $18.4 billion in the comparable period in 2019. The increase over the prior year was due to the acquisition of WellCare, growth in the Health Insurance Marketplace business, expansions, new programs and growth in many of our states, particularly Iowa and Pennsylvania, and the reinstatement of the health insurer fee in 2020, partially offset by the divestiture of our Illinois health plan. |
• | HBR
of 82.1% for the second quarter of 2020 represents a decrease from 86.7% in the comparable period in 2019. The substantial decrease was attributable to lower medical utilization due to the COVID-19 pandemic, partially offset by the Health Insurance Marketplace business, where margins continue to normalize. |
• | The SG&A expense ratio was 8.8% for the second
quarter of 2020, compared to 9.1% in the second quarter of 2019. The decrease to the SG&A expense ratio was driven by the addition of the WellCare business, which operates at a lower SG&A ratio, and the leveraging of expenses over higher revenues. The decrease was partially offset by higher acquisition related expenses due to the recent closing of the WellCare acquisition and additional support provided to our Health Insurance Marketplace members through the extension of grace periods for member premiums for those impacted by the COVID-19 pandemic. |
• | The
Adjusted SG&A expense ratio was 8.5% for the second quarter of 2020, compared to 9.0% in the second quarter of 2019. The Adjusted SG&A expense ratio benefited from the addition of the WellCare business, which operates at a lower SG&A ratio, and the leveraging of expenses over higher revenues. The decrease was partially offset by additional support provided to our Health Insurance Marketplace members through the extension of grace periods for member premiums for those impacted by the COVID-19 pandemic. |
• | The
effective tax rate was 38.2% for the second quarter of 2020, compared to 25.7% in the second quarter of 2019. The increase in the effective tax rate was driven by the reinstatement of the health insurer fee in 2020. For the second quarter of 2020, our effective tax rate on adjusted earnings was 36.1%. |
Days in claims payable, March 31, 2020(1) | 47 | ||
Impact
of the COVID-19 Pandemic | 4 | ||
Days in claims payable, June 30, 2020 | 51 | ||
(1) A pro-forma adjustment has been made to medical costs to include
a full quarter of WellCare medical costs. Using actual medical costs, days in claims payable was 51. |
Full Year 2020 | |||||||||
Low | High | ||||||||
Total
revenues (in billions) | $ | 109.0 | $ | 111.4 | |||||
GAAP diluted EPS | $ | 3.04 | $ | 3.18 | |||||
Adjusted
Diluted EPS (1) | $ | 4.76 | $ | 4.96 | |||||
Diluted shares outstanding (in millions) | 577.9 | 580.9 | |||||||
(1) | Adjusted
Diluted EPS excludes estimated amortization of acquired intangible assets of $0.98 to $1.00 per diluted share, acquisition related expenses of $0.67 to $0.71 per diluted share, the gain on the sale of the Illinois health plan of approximately $0.10 per diluted share, debt extinguishment costs of approximately $0.07 per diluted share, and non-cash asset impairment of $0.10 per diluted share. |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
GAAP net earnings attributable to Centene | $ | 1,206 | $ | 495 | $ | 1,252 | $ | 1,017 | |||||||
Amortization
of acquired intangible assets | 197 | 64 | 363 | 129 | |||||||||||
Acquisition related expenses | 71 | 23 | 384 | 41 | |||||||||||
Other
adjustments (1) | (11 | ) | — | 12 | — | ||||||||||
Income tax effects of adjustments (2) | (53 | ) | (21 | ) | (125 | ) | (41 | ) | |||||||
Adjusted
net earnings | $ | 1,410 | $ | 561 | $ | 1,886 | $ | 1,146 |
(1) | Other
adjustments for the three months ended June 30, 2020 include an adjustment to the gain related to the divestiture of certain products of our Illinois health plan of $11 million, or $0.00 per diluted share, net of income tax expense $0.02. Other adjustments include the following adjustments for the six months ended June 30, 2020: (a) divestiture gain of $104 million, or $0.11 per diluted share, (b) non-cash impairment of $72 million, or $0.10 per diluted share, and (c) debt extinguishment costs of $44
million, or $0.06 per diluted share. |
(2) | The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment. |
Three
Months Ended June 30, | Six Months Ended June 30, | Annual Guidance December 31, 2020 | |||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
GAAP
diluted EPS attributable to Centene | $ | 2.05 | $ | 1.18 | $ | 2.20 | $ | 2.42 | $3.04
- $3.18 | ||||||||||
Amortization of acquired intangible assets (3) | 0.25 | 0.12 | 0.48 | 0.24 | $0.98
- $1.00 | ||||||||||||||
Acquisition related expenses (4) | 0.10 | 0.04 | 0.58 | 0.07 | $0.67
- $0.71 | ||||||||||||||
Other adjustments (5) | — | — | 0.05 | — | $0.07 | ||||||||||||||
Adjusted
Diluted EPS | $ | 2.40 | $ | 1.34 | $ | 3.31 | $ | 2.73 | $4.76
- $4.96 |
(3) | The amortization of acquired intangible assets per diluted share presented above is net of an income tax benefit of $0.09 and $0.04 for the three months ended June 30, 2020 and 2019, respectively, and $0.16 and $0.07 for the six months ended June 30, 2020
and 2019, respectively, and an estimated $0.30 to $0.32 for the year ended December 31, 2020. |
(4) | The acquisition related expenses per diluted share presented above are net of an income tax benefit of $0.02 and $0.01 for the three months ended June 30, 2020 and 2019, respectively, and $0.09
and $0.03 for the six months ended June 30, 2020 and 2019, respectively, and an estimated $0.11 to $0.12 for the year ended December 31, 2020. |
(5) | Other adjustments include the following items: |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
GAAP SG&A expenses | $ | 2,255 | $ | 1,574 | $ | 4,639 | $ | 3,183 | |||||||
Acquisition
related expenses | 70 | 21 | 365 | 38 | |||||||||||
Adjusted SG&A expenses | $ | 2,185 | $ | 1,553 | $ | 4,274 | $ | 3,145 |
• | Health Benefits Ratio (HBR) (GAAP) = Medical costs divided by premium revenues. |
• | SG&A Expense Ratio (GAAP) = Selling, general and administrative
expenses divided by premium and service revenues. |
• | Adjusted SG&A Expenses (non-GAAP) = Selling, general and administrative expenses, less acquisition related expenses. |
• | Adjusted SG&A Expense Ratio (non-GAAP) = Adjusted selling, general and administrative expenses divided by premium and service revenues. |
• | Adjusted
Net Earnings (non-GAAP) = Net earnings less amortization of acquired intangible assets, less acquisition related expenses, as well as adjustments for other items, net of the income tax effect of the adjustments. |
• | Adjusted Diluted EPS (non-GAAP) = Adjusted net earnings divided by weighted average common shares outstanding on a fully diluted basis. |
• | Debt to Capitalization Ratio (GAAP)
= Total debt, divided by total debt plus total stockholder’s equity. |
• | Debt to Capitalization Ratio Excluding Non-Recourse Debt (non-GAAP) = Total debt less non-recourse debt, divided by total debt less non-recourse debt plus total stockholder’s equity. |
• | Average Medical Claims Expense (GAAP) = Medical costs for the period, divided by number of days in such period. Average Medical
Claims Expense is most often calculated for the quarterly reporting period. |
• | Days in Claims Payable (GAAP) = Medical claims liabilities, divided by average medical claims expense. Days in Claims Payable is most often calculated for the quarterly reporting period. |
• | State
Directed Payments: Payments directed by a state that have minimal risk, but are administered as a premium adjustment. These payments are recorded as premium revenue and medical costs at close to a 100% HBR. The Company has little visibility to the timing of these payments until they are paid by a state. |
• | Pass Through Payments: Non-risk supplemental payments from a state that the Company is required to pass through to designated contracted providers. These payments are recorded
as premium tax revenue and premium tax expense. |
ASSETS | |||||||
Current
assets: | |||||||
Cash and cash equivalents | $ | 12,798 | $ | 12,123 | |||
Premium and trade receivables | 10,339 | 6,247 | |||||
Short-term
investments | 1,558 | 863 | |||||
Other current assets | 2,127 | 1,090 | |||||
Total current assets | 26,822 | 20,323 | |||||
Long-term
investments | 10,231 | 7,717 | |||||
Restricted deposits | 1,050 | 658 | |||||
Property, software and equipment, net | 2,544 | 2,121 | |||||
Goodwill | 17,434 | 6,863 | |||||
Intangible
assets, net | 8,702 | 2,063 | |||||
Other long-term assets | 1,564 | 1,249 | |||||
Total assets | $ | 68,347 | $ | 40,994 | |||
LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Medical claims liability | $ | 11,418 | $ | 7,473 | |||
Accounts
payable and accrued expenses | 8,704 | 4,164 | |||||
Return of premium payable | 1,242 | 824 | |||||
Unearned revenue | 448 | 383 | |||||
Current
portion of long-term debt | 106 | 88 | |||||
Total current liabilities | 21,918 | 12,932 | |||||
Long-term debt | 16,708 | 13,638 | |||||
Other
long-term liabilities | 4,516 | 1,732 | |||||
Total liabilities | 43,142 | 28,302 | |||||
Commitments and contingencies | |||||||
Redeemable
noncontrolling interests | 33 | 33 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.001 par value; authorized 10,000 shares; no shares issued or outstanding
at June 30, 2020 and December 31, 2019 | — | — | |||||
Common stock, $0.001 par value; authorized 800,000 shares; 595,160 issued and 579,345 outstanding at June 30, 2020, and 421,508 issued and 415,048 outstanding at December 31, 2019 | — | — | |||||
Additional
paid-in capital | 19,333 | 7,647 | |||||
Accumulated other comprehensive earnings | 245 | 134 | |||||
Retained earnings | 6,236 | 4,984 | |||||
Treasury
stock, at cost (15,815 and 6,460 shares, respectively) | (758 | ) | (214 | ) | |||
Total Centene stockholders' equity | 25,056 | 12,551 | |||||
Noncontrolling interest | 116 | 108 | |||||
Total
stockholders' equity | 25,172 | 12,659 | |||||
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ | 68,347 | $ | 40,994 |
Three Months Ended June 30, | Six
Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | |||||||||||||||
Premium | $ | 24,745 | $ | 16,554 | $ | 47,959 | $ | 32,757 | |||||||
Service | 979 | 745 | 1,937 | 1,380 | |||||||||||
Premium
and service revenues | 25,724 | 17,299 | 49,896 | 34,137 | |||||||||||
Premium tax and health insurer fee | 1,988 | 1,057 | 3,841 | 2,663 | |||||||||||
Total
revenues | 27,712 | 18,356 | 53,737 | 36,800 | |||||||||||
Expenses: | |||||||||||||||
Medical
costs | 20,307 | 14,354 | 40,727 | 28,236 | |||||||||||
Cost of services | 833 | 615 | 1,658 | 1,159 | |||||||||||
Selling,
general and administrative expenses | 2,255 | 1,574 | 4,639 | 3,183 | |||||||||||
Amortization of acquired intangible assets | 197 | 64 | 363 | 129 | |||||||||||
Premium
tax expense | 1,723 | 1,106 | 3,348 | 2,765 | |||||||||||
Health insurer fee expense | 379 | — | 724 | — | |||||||||||
Impairment | — | — | 72 | — | |||||||||||
Total
operating expenses | 25,694 | 17,713 | 51,531 | 35,472 | |||||||||||
Earnings from operations | 2,018 | 643 | 2,206 | 1,328 | |||||||||||
Other
income (expense): | |||||||||||||||
Investment and other income | 113 | 120 | 280 | 219 | |||||||||||
Debt
extinguishment costs | — | — | (44 | ) | — | ||||||||||
Interest expense | (187 | ) | (101 | ) | (367 | ) | (200 | ) | |||||||
Earnings
from operations, before income tax expense | 1,944 | 662 | 2,075 | 1,347 | |||||||||||
Income tax expense | 742 | 170 | 827 | 336 | |||||||||||
Net
earnings | 1,202 | 492 | 1,248 | 1,011 | |||||||||||
Loss attributable to noncontrolling interests | 4 | 3 | 4 | 6 | |||||||||||
Net
earnings attributable to Centene Corporation | $ | 1,206 | $ | 495 | $ | 1,252 | $ | 1,017 | |||||||
Net
earnings per common share attributable to Centene Corporation: | |||||||||||||||
Basic earnings per common share | $ | 2.08 | $ | 1.20 | $ | 2.23 | $ | 2.46 | |||||||
Diluted
earnings per common share | $ | 2.05 | $ | 1.18 | $ | 2.20 | $ | 2.42 | |||||||
Weighted
average number of common shares outstanding: | |||||||||||||||
Basic | 579,189 | 413,370 | 561,623 | 413,144 | |||||||||||
Diluted | 587,498 | 419,671 | 569,559 | 419,707 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Cash
flows from operating activities: | |||||||
Net earnings | $ | 1,248 | $ | 1,011 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities | |||||||
Depreciation
and amortization | 618 | 313 | |||||
Stock compensation expense | 164 | 72 | |||||
Impairment | 72 | — | |||||
Loss
on debt extinguishment | 44 | — | |||||
Deferred income taxes | 17 | (10 | ) | ||||
Gain on divestiture | (104 | ) | — | ||||
Other
adjustments, net | 2 | — | |||||
Changes in assets and liabilities | |||||||
Premium and trade receivables | (1,159 | ) | 234 | ||||
Other
assets | 202 | (47 | ) | ||||
Medical claims liabilities | 146 | 558 | |||||
Unearned revenue | (127 | ) | (138 | ) | |||
Accounts
payable and accrued expenses | 1,309 | (616 | ) | ||||
Other long-term liabilities | 1,028 | 869 | |||||
Other operating activities, net | 14 | (13 | ) | ||||
Net
cash provided by operating activities | 3,474 | 2,233 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (412 | ) | (336 | ) | |||
Purchases
of investments | (1,849 | ) | (1,280 | ) | |||
Sales and maturities of investments | 1,768 | 719 | |||||
Acquisitions, net of cash acquired | (3,000 | ) | (32 | ) | |||
Divestiture
proceeds, net of divested cash | 466 | — | |||||
Other investing activities, net | (5 | ) | — | ||||
Net cash used in investing activities | (3,032 | ) | (929 | ) | |||
Cash
flows from financing activities: | |||||||
Proceeds from long-term debt | 2,630 | 5,617 | |||||
Payments of long-term debt | (1,598 | ) | (5,353 | ) | |||
Common
stock repurchases | (561 | ) | (37 | ) | |||
Payments for debt extinguishment | (21 | ) | — | ||||
Debt issuance costs | (93 | ) | — | ||||
Other
financing activities, net | 22 | 9 | |||||
Net cash provided by financing activities | 379 | 236 | |||||
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash | 3 | 2 | |||||
Net increase in cash, cash equivalents and restricted cash and cash equivalents | 824 | 1,542 | |||||
Cash, cash equivalents, and restricted
cash and cash equivalents, beginning of period | 12,131 | 5,350 | |||||
Cash, cash equivalents, and restricted cash and cash equivalents, end of period | $ | 12,955 | $ | 6,892 | |||
Supplemental
disclosures of cash flow information: | |||||||
Interest paid | $ | 360 | $ | 132 | |||
Income
taxes paid | $ | 75 | $ | 381 | |||
Equity issued in connection with acquisitions | $ | 11,526 | $ | — | |||
The
following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported within the Consolidated Balance Sheets to the totals above: | |||||||
2020 | 2019 | ||||||
Cash and cash equivalents | $ | 12,798 | $ | 6,875 | |||
Restricted
cash and cash equivalents, included in restricted deposits | 157 | 17 | |||||
Total cash, cash equivalents, and restricted cash and cash equivalents | $ | 12,955 | $ | 6,892 |
Q2 | Q1 | Q4 | Q3 | Q2 | |||||||||||||||
2020 | 2020 | 2019 | 2019 | 2019 | |||||||||||||||
Medicaid: | |||||||||||||||||||
TANF,
CHIP & Foster Care | 10,894,200 | 10,259,700 | 7,528,700 | 7,623,400 | 7,388,700 | ||||||||||||||
ABD
& LTSS | 1,496,000 | 1,410,100 | 1,043,500 | 1,045,700 | 997,900 | ||||||||||||||
Behavioral
Health | 173,900 | 158,000 | 66,500 | 73,300 | 68,800 | ||||||||||||||
Total
Medicaid | 12,564,100 | 11,827,800 | 8,638,700 | 8,742,400 | 8,455,400 | ||||||||||||||
Medicare
PDP | 4,443,100 | 4,416,500 | — | — | — | ||||||||||||||
Commercial | 2,763,300 | 2,728,200 | 2,331,100 | 2,388,500 | 2,449,400 | ||||||||||||||
Medicare
(1) | 996,100 | 976,700 | 404,500 | 404,500 | 398,500 | ||||||||||||||
International | 600,400 | 599,900 | 599,800 | 462,400 | 463,100 | ||||||||||||||
Correctional | 166,000 | 172,000 | 180,000 | 187,200 | 153,900 | ||||||||||||||
Total
at-risk membership | 21,533,000 | 20,721,100 | 12,154,100 | 12,185,000 | 11,920,300 | ||||||||||||||
TRICARE
eligibles | 2,864,700 | 2,864,800 | 2,860,700 | 2,860,700 | 2,855,800 | ||||||||||||||
Non-risk
membership | 223,300 | 216,200 | 227,000 | 227,800 | 228,100 | ||||||||||||||
Total | 24,621,000 | 23,802,100 | 15,241,800 | 15,273,500 | 15,004,200 | ||||||||||||||
(1)
Membership includes Medicare Advantage, Medicare Supplement, Special Needs Plans, and MMP. | |||||||||||||||||||
NUMBER OF EMPLOYEES | 71,800 | 69,700 | 56,600 | 53,600 | 52,000 | ||||||||||||||
DAYS
IN CLAIMS PAYABLE (2) | 51 | 51 | 45 | 48 | 47 | ||||||||||||||
(2)
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 2020 was 47, reflecting adjusted medical costs to include a full quarter of WellCare operations. | |||||||||||||||||||
CASH,
INVESTMENTS AND RESTRICTED DEPOSITS (in millions) | |||||||||||||||||||
Regulated | $ | 23,655 | $ | 19,358 | $ | 14,204 | $ | 14,734 | $ | 15,101 | |||||||||
Unregulated | 1,982 | 2,871 | 7,157 | 855 | 801 | ||||||||||||||
Total | $ | 25,637 | $ | 22,229 | $ | 21,361 | $ | 15,589 | $ | 15,902 | |||||||||
DEBT
TO CAPITALIZATION | 40.0 | % | 42.2 | % | 52.0 | % | 36.2 | % | 36.8 | % | |||||||||
DEBT
TO CAPITALIZATION EXCLUDING NON-RECOURSE DEBT (3) | 39.7 | % | 41.9 | % | 51.7 | % | 35.6 | % | 36.3 | % | |||||||||
(3) The
non-recourse debt represents the Company's mortgage note payable ($52 million at June 30, 2020) and construction loan payable ($165 million at June 30, 2020). As of December 31, 2019, excluding non-recourse debt and the senior debt issued to fund the WellCare acquisition in advance of closing, our debt to capital was 34.3%. The non-recourse debt represents the Company's mortgage note payable ($54 million at December 31, 2019) and construction loan payable ($140 million at December 31, 2019). The WellCare related senior notes represent $6,921 million of
long-term debt as of December 31, 2019. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
HBR | 82.1 | % | 86.7 | % | 84.9 | % | 86.2 | % | |||
SG&A
expense ratio | 8.8 | % | 9.1 | % | 9.3 | % | 9.3 | % | |||
Adjusted SG&A expense ratio | 8.5 | % | 9.0 | % | 8.6 | % | 9.2 | % |
Balance, June 30, 2019 | $ | 7,447 | ||
Less: reinsurance recoverable | 19 | |||
Balance,
June 30, 2019, net | 7,428 | |||
Acquisitions and divestitures | 3,744 | |||
Incurred related to: | ||||
Current period | 71,919 | |||
Prior
period | (566 | ) | ||
Total incurred | 71,353 | |||
Paid related to: | ||||
Current period | 64,761 | |||
Prior
period | 6,363 | |||
Total paid | 71,124 | |||
Balance, June 30, 2020, net | 11,401 | |||
Plus: reinsurance recoverable | 17 | |||
Balance,
June 30, 2020 | $ | 11,418 | ||
Members and Communities |
Waiving
COVID-19 related prior authorizations and member cost sharing for related screening, testing and treatment for all Medicare, Medicaid and Marketplace members. |
Delivering 50,000 gift cards, with $35 of value each, to be used to purchase essential healthcare and educational items including diapers, over-the-counter medicines, cleaning supplies and books. |
Donating 1 million meals a month for 12 months to feed our neighbors in communities all over the country. |
Providing grants to Area Agencies on Aging to enable grocery and meal deliveries for members with disabilities who are unable to access nutritious food. |
Matching funds in partnership with workforce development boards
and other safety net organizations to prepare them for a career in healthcare to support the direct care workforce and newly unemployed individuals. |
Investment in new technology and supplies to improve access to quality healthcare for the incarcerated population, including expanding PPE supplies in prisons and expanding the partnership with the Concordance Academy and other charitable agencies to enhance long-term outcomes for incarcerated individuals. |
Creation of Health Disparities Task Force, focused on studying the causes of healthcare disparities, recommending improvements in policies and practices and performing outreach to key leaders in impacted areas to increase education. |
Waiving all cost sharing for in-network primary care, behavioral health
and telehealth costs for Medicare Advantage members for the remainder of 2020. In addition, offering our Community Connections Help Line, available to anyone in need of help beyond medical care, as well as expanded benefits including extended meal program benefits, over-the-counter (OTC) allowances, and annual wellness visit incentives to help members in need of extra support. |
Formed partnership with the National Minority Quality Forum (NMQF) to study the impact of COVID on racial minorities and underserved communities. |
Expanded partnership with Quartet Health to help members quickly and easily access behavioral health care. |
Employees |
10
additional working days of paid leave to support employees |
Waiving prior authorizations and employee cost sharing for COVID-19 related screening, testing and treatment |
Encouraging employees to work from home, with approximately 90% working remotely |
Providing essential workers with a one-time payment of $750 in appreciation and recognition of their willingness to serve in their important office roles |
Scheduling essential workers to preserve social distancing, and enhancing health and safety protocols such as daily cleaning and disinfecting for essential workers |
Establishing
a Medical Reserve Leave policy to support clinical staff paid leave and benefits for up to three months of volunteer COVID pandemic service |
Hiring continues across the country to fill nearly 2,000 open positions |
Providers and Government Partners |
Expediting the rollout of FirstNet that will streamline access to affordable, high-speed wireless broadband services for primary care providers in rural and underserved communities. |
Dedicating funds to the Medicaid Telehealth Partnership's efforts, which will be used to purchase equipment and provide training and technical assistance to FQHCs. |
Expediting the distribution of approximately 2 million pieces of PPE including safety goggles, facemasks, hand sanitizers and disaster kits. |
Extending grants to providers to assist with the upfront investment costs of new devices and equipment. |
Developing a new Provider Accessibility Initiative (PAI) COVID-19 Web Series to provide timely recommendations on how providers and organizations can deliver disability-competent care during the pandemic and beyond. |
In partnership with Quest Diagnostics, distributing 25,000 COVID test kits each week to FQHCs in ten states or districts across the
country. |
Investments in Mental Health Resources, including training and support to thousands of front-line providers, donations to local organizations with increased demand for ‘warmline’ call centers, and an investment in the National Council for Behavioral Health for a virtual training program. |
Donated $500,000 to the National Domestic Violence Hotline. |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/24 | ||||
7/27/21 | ||||
1/1/21 | ||||
12/31/20 | ||||
8/4/20 | ||||
Filed as of / For Period end: | 7/28/20 | 10-Q | ||
Filed on: | 7/27/20 | 10-Q | ||
6/30/20 | 10-Q, 4 | |||
3/31/20 | 10-Q, 4 | |||
12/31/19 | 10-K, 4, 5 | |||
6/30/19 | 10-Q, 4 | |||
List all Filings |