Financial Results (dollars in millions, customers in thousands):
|Three Months Ended||Ended|
|September 30,||June 30,||September 30,|
|Premiums and Fees||$||4,922||$||3,255||$||5,008||$||14,431|
|Adjusted Income from Operations 1||$||384||$||248||$||332||$||978|
|Adjusted Margin, After-Tax 7||7.0%||6.6%||6.0%||6.1%|
|As of the Periods Ended|
|September 30,||June 30,||December 31,|
|Medicare and Medicaid||441||44||437||44|
|Behavioral Care 8||21,544||17,725||21,208||18,344|
|Medicare Part D||1,265||538||1,264||538|
- Overall, Health Care results reflect contributions from the HealthSpring acquisition effective February 1, 2012 and sustained growth in our targeted customer segments.
- Third quarter premiums and fees increased 51% relative to third quarter 2011, due to the contributions from the HealthSpring acquisition, organic business growth, rate increases, and increased specialty penetration, partially offset by business mix, which reflects a continued shift by clients to our Administrative Services Only (“ASO”) solutions.
- Third quarter 2012 adjusted income from operations 1 reflects continued growth in targeted medical and specialty businesses, favorable pharmacy results primarily for our Medicare Part D business, and favorable medical costs, including prior year claim development of approximately $6 million after-tax. The third quarter 2012 results also reflect further operating expense leverage, while continuing to make strategic investments in service capabilities and programs to increase efficiency.
- Third quarter 2012 segment margins 7 are higher than third quarter 2011 and second quarter 2012 primarily as a result of favorable pharmacy results.
- Adjusted income from operations 1 for third quarter 2011 and second quarter 2012 included favorable prior year claim development of approximately $5 million after-tax and $17 million after-tax, respectively.
- Health Care medical claims payable 9 was approximately $1.4 billion at September 30, 2012 and $900 million at December 31, 2011. The increase in the September 30, 2012 balance is primarily attributable to the HealthSpring acquisition.
This segment includes Cigna’s supplemental health, life, and accident insurance and global health expatriate benefits businesses operating in international markets as well as the U.S.
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