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.