Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 12, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'WellCare Health Plans, Inc. | ' | ' |
Entity Central Index Key | '0001279363 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $2.40 |
Entity Common Stock, Shares Outstanding | ' | 43,772,602 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Premium | $9,509.10 | $7,400.20 | $6,098.10 |
Investment and other income | 18.8 | 8.8 | 8.7 |
Total revenues | 9,527.90 | 7,409 | 6,106.80 |
Expenses: | ' | ' | ' |
Medical benefits | 8,258.60 | 6,303.90 | 4,948 |
Selling, general and administrative | 856.5 | 690.8 | 642.1 |
Medicaid premium taxes | 75.7 | 82.2 | 76.2 |
Depreciation and amortization | 44.1 | 31.6 | 26.4 |
Interest | 11.9 | 4.1 | 6.5 |
Total expenses | 9,246.80 | 7,112.60 | 5,699.20 |
Income from operations | 281.1 | 296.4 | 407.6 |
(Loss) gain on extinguishment of debt | -2.8 | 0 | 10.8 |
Income before income taxes | 278.3 | 296.4 | 418.4 |
Income tax expense | 103 | 111.7 | 154.2 |
Net income | 175.3 | 184.7 | 264.2 |
Change in net unrealized gains and losses on available-for-sale securities | -0.8 | 1.5 | 1 |
Income tax expense related to other comprehensive income | -0.3 | 0.6 | 0.4 |
Other comprehensive income, net of tax | -0.5 | 0.9 | 0.6 |
Comprehensive income | $174.80 | $185.60 | $264.80 |
Earnings per share (see Note 5): | ' | ' | ' |
Basic (USD per share) | $4.03 | $4.29 | $6.17 |
Diluted (USD per share) | $3.98 | $4.22 | $6.10 |
Weighted average common shares outstanding: | ' | ' | ' |
Basic (in shares) | 43,535,927 | 43,104,216 | 42,817,466 |
Diluted (in shares) | 44,000,563 | 43,826,285 | 43,328,756 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $1,482,500,000 | $1,100,500,000 |
Investments | 314,700,000 | 220,300,000 |
Premiums receivable, net | 490,700,000 | 387,300,000 |
Pharmacy rebates receivable, net | 165,500,000 | 126,800,000 |
Funds receivable for the benefit of members | 93,500,000 | 126,700,000 |
Income taxes receivable | 7,100,000 | 15,600,000 |
Prepaid expenses and other current assets, net | 115,000,000 | 96,300,000 |
Deferred income tax asset | 23,700,000 | 27,200,000 |
Total current assets | 2,692,700,000 | 2,100,700,000 |
Property, equipment and capitalized software, net | 147,400,000 | 131,500,000 |
Goodwill | 236,800,000 | 223,800,000 |
Other intangible assets, net | 66,500,000 | 53,000,000 |
Long-term investments | 80,400,000 | 96,700,000 |
Restricted investments | 82,500,000 | 67,400,000 |
Deposits and other assets | 144,400,000 | 2,400,000 |
Total Assets | 3,450,700,000 | 2,675,500,000 |
Current Liabilities: | ' | ' |
Medical benefits payable | 953,400,000 | 733,000,000 |
Unearned premiums | 200,000 | 100,000 |
Accounts payable | 22,300,000 | 18,600,000 |
Other accrued expenses and liabilities | 187,700,000 | 221,100,000 |
Current portion of amount payable related to investigation resolution | 36,200,000 | 37,300,000 |
Current portion of long-term debt | 0 | 15,000,000 |
Other payables to government partners | 37,300,000 | 88,300,000 |
Total current liabilities | 1,237,100,000 | 1,113,400,000 |
Deferred income tax liability | 55,400,000 | 42,100,000 |
Amount payable related to investigation resolution | 34,100,000 | 68,200,000 |
Long-term debt | 600,000,000 | 120,000,000 |
Other liabilities | 6,200,000 | 8,700,000 |
Total liabilities | 1,932,800,000 | 1,352,400,000 |
Commitments and contingencies (see Note 13) | 0 | 0 |
Stockholders' Equity: | ' | ' |
Preferred stock, $0.01 par value (20,000,000 authorized, no shares issued or outstanding) | 0 | 0 |
Common stock, $0.01 par value (100,000,000 authorized, 43,766,645 and 43,212,375 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively) | 400,000 | 400,000 |
Paid-in capital | 489,400,000 | 469,400,000 |
Retained earnings | 1,029,400,000 | 854,100,000 |
Accumulated other comprehensive loss | -1,300,000 | -800,000 |
Total stockholders' equity | 1,517,900,000 | 1,323,100,000 |
Total Liabilities and Stockholders' Equity | $3,450,700,000 | $2,675,500,000 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 43,766,645 | 43,212,375 |
Common stock, outstanding (in shares) | 43,766,645 | 43,212,375 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash provided by (used in) operating activities: | ' | ' | ' |
Net income | $175.30 | $184.70 | $264.20 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 44.1 | 31.6 | 26.4 |
Equity-based compensation expense | 12.5 | 14.9 | 19.5 |
Loss (gain) on extinguishment of debt | 2.8 | 0 | -10.8 |
Loss on disposal of fixed assets and asset impairment charges | 9 | 0 | 0 |
Incremental tax benefit from equity-based compensation | -3.6 | -3.8 | -2.8 |
Deferred taxes, net | 15.5 | 18.8 | 98.2 |
Provision for doubtful receivables | 10.6 | 16.6 | 11.1 |
Changes in operating accounts, net of effects from acquisitions: | ' | ' | ' |
Premiums receivable, net | -77.3 | -180.3 | -96.8 |
Pharmacy rebates receivable, net | -38.7 | -12.4 | -24.7 |
Prepaid expenses and other assets, net | -13.7 | -29 | -37.3 |
Medical benefits payable | 148.8 | -38.6 | 1.8 |
Unearned premiums | 0.1 | 0 | -67.2 |
Accounts payable and other accrued expenses | -30.8 | 14.9 | 14 |
Other payables to government partners | -51 | -12.1 | 51.6 |
Amount payable related to investigation resolution | -35.2 | -45.8 | -73.8 |
Income taxes receivable/payable, net | 9.8 | 7.8 | -12.8 |
Other, net | 0.7 | 2 | 1.4 |
Net cash provided by (used in) operating activities | 178.9 | -30.7 | 162 |
Cash used in investing activities: | ' | ' | ' |
Acquisitions, net of cash acquired | -40.5 | -126.6 | 0 |
Payments advanced for acquisitions | -133.6 | 0 | 0 |
Purchases of investments | -416.7 | -465.6 | -386.2 |
Proceeds from sale and maturities of investments | 375.8 | 436.8 | 277.5 |
Purchases of restricted investments | -45.8 | -36.6 | -34.8 |
Proceeds from sale and maturities of investments | 32.3 | 30.5 | 81.5 |
Additions to property, equipment and capitalized software, net | -62 | -61.3 | -49.6 |
Net cash used in investing activities | -290.5 | -222.8 | -111.6 |
Cash provided by (used in) financing activities: | ' | ' | ' |
Proceeds from debt, net of financing costs paid | 816.4 | -0.6 | 147.5 |
Proceeds from debt, net of financing costs paid | 10.3 | 9.4 | 6.3 |
Incremental tax benefit from equity-based compensation | 3.6 | 3.8 | 2.8 |
Repurchase and retirement of shares to satisfy tax withholding requirements | -4.1 | -6.5 | -3.7 |
Payments on debt | 365 | 11.3 | 3.8 |
Repurchase of subordinated notes | 0 | 0 | -101.7 |
Payments on capital leases | 1.6 | 2.2 | 2.7 |
Funds received for the benefit of members, net | 34 | 36.3 | -129.6 |
Net cash provided by (used in) financing activities | 493.6 | 28.9 | -84.9 |
Cash and cash equivalents: | ' | ' | ' |
Increase (decrease) in cash and cash equivalents | 382 | -224.6 | -34.5 |
Balance at beginning of period | 1,100.50 | 1,325.10 | 1,359.60 |
Balance at end of period | 1,482.50 | 1,100.50 | 1,325.10 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' | ' |
Cash paid for taxes | 80.5 | 101 | 69.8 |
Cash paid for interest | 6.3 | 3.6 | 5.9 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS: | ' | ' | ' |
Non-cash issuance of subordinated notes | 0 | 0 | 112.5 |
Non-cash additions to property, equipment, and capitalized software | $2.90 | $3.30 | $2.50 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Millions, except Share data, unless otherwise specified | |||||
Balance, beginning of period at Dec. 31, 2010 | $832.10 | $0.40 | $428.80 | $405.20 | ($2.30) |
Balance, beginning of period (in shares) at Dec. 31, 2010 | ' | 42,541,725 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Common stock issued for stock options | 6.3 | 0 | 6.3 | 0 | 0 |
Common stock issued for stock options (in shares) | ' | 226,036 | ' | ' | ' |
Restricted stock grants and RSU vesting, net of forfeitures | 0 | 0 | 0 | 0 | 0 |
Restricted stock grants and RSU vesting, net of forfeitures (in shares) | ' | 150,689 | ' | ' | ' |
Purchase of treasury stock | -3.7 | 0 | -3.7 | 0 | 0 |
Purchase of treasury stock (in shares) | ' | -69,652 | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 19.5 | 0 | 19.5 | 0 | 0 |
Incremental tax decrement from option exercises | -2.1 | 0 | -2.1 | 0 | 0 |
Comprehensive income (loss) | 264.8 | 0 | 0 | 264.2 | 0.6 |
Balance, end of period at Dec. 31, 2011 | 1,116.90 | 0.4 | 448.8 | 669.4 | -1.7 |
Balance, end of period (in shares) at Dec. 31, 2011 | ' | 42,848,798 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Common stock issued for stock options | 9.4 | 0 | 9.4 | 0 | 0 |
Common stock issued for stock options (in shares) | ' | 243,307 | ' | ' | ' |
Restricted stock grants and RSU vesting, net of forfeitures | 0 | 0 | 0 | 0 | 0 |
Restricted stock grants and RSU vesting, net of forfeitures (in shares) | ' | 128,840 | ' | ' | ' |
Purchase of treasury stock | -6.5 | 0 | -6.5 | 0 | 0 |
Purchase of treasury stock (in shares) | ' | -8,570 | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 14.9 | 0 | 14.9 | 0 | 0 |
Incremental tax decrement from option exercises | 2.8 | 0 | 2.8 | 0 | 0 |
Comprehensive income (loss) | 185.6 | 0 | 0 | 184.7 | 0.9 |
Balance, end of period at Dec. 31, 2012 | 1,323.10 | 0.4 | 469.4 | 854.1 | -0.8 |
Balance, end of period (in shares) at Dec. 31, 2012 | 43,212,375 | 43,212,375 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Common stock issued for stock options | 10.3 | 0 | 10.3 | 0 | 0 |
Common stock issued for stock options (in shares) | ' | 390,942 | ' | ' | ' |
Restricted stock grants and RSU vesting, net of forfeitures | 0 | 0 | 0 | 0 | 0 |
Restricted stock grants and RSU vesting, net of forfeitures (in shares) | ' | 231,154 | ' | ' | ' |
Purchase of treasury stock | -4.1 | 0 | -4.1 | 0 | 0 |
Purchase of treasury stock (in shares) | ' | -67,826 | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 12.5 | 0 | 12.5 | 0 | 0 |
Incremental tax decrement from option exercises | 1.3 | 0 | 1.3 | 0 | 0 |
Comprehensive income (loss) | 174.8 | 0 | 0 | 175.3 | -0.5 |
Balance, end of period at Dec. 31, 2013 | $1,517.90 | $0.40 | $489.40 | $1,029.40 | ($1.30) |
Balance, end of period (in shares) at Dec. 31, 2013 | 43,766,645 | 43,766,645 | ' | ' | ' |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
ORGANIZATION AND BASIS OF PRESENTATION | ' |
ORGANIZATION AND BASIS OF PRESENTATION | |
WellCare Health Plans, Inc., (the "Company," "we," "us," or "our"), provides managed care services exclusively to government-sponsored health care programs. The Company was formed as a Delaware limited liability company in May 2002 to acquire our Florida, New York and Connecticut health plans. We completed the acquisition of the health plans through two concurrent transactions in July 2002. In July 2004, immediately prior to the closing of our initial public offering, we merged the limited liability company into a Delaware corporation and changed our name to WellCare Health Plans, Inc. | |
As of December 31, 2013, we served approximately 2.8 million members. In 2013, we operated Medicaid health plans in Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New York, Ohio and South Carolina. In connection with our acquisitions of Medicaid plans in South Carolina and Missouri (see Note 3), our Medicaid operations in those states began in February 2013 and April 2013, respectively. | |
Our Medicaid contract in Ohio expired on June 30, 2012. We were not awarded a Medicaid contract in Ohio for the 2013 fiscal year; however, the state contracted with us to provide services to Ohio Medicaid beneficiaries through the transition period, which terminated on June 30, 2013. The Ohio Medicaid contract accounted for approximately 97,000 and 102,000, or 4%, of our consolidated membership as of December 31, 2012 and 2011, respectively, and contributed approximately $137.4 million, $265.3 million, and $234.8 million of premium revenue, net of premium taxes, to our operations for the years ended December 31, 2013, 2012 and 2011, respectively. | |
As of December 31, 2013, we offered Medicare Advantage ("MA") coordinated care plans ("CCPs") in certain | |
counties in Arizona, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Missouri, New Jersey, | |
New York, Ohio and Texas. We also offered stand-alone Medicare prescription drug plans ("PDPs") in 49 states and the District | |
of Columbia. | |
Basis of Presentation and Use of Estimates | |
The consolidated balance sheets and statements of comprehensive income (loss), changes in stockholders' equity, and cash flows include the accounts of the Company and all of its majority-owned subsidiaries. We eliminated all intercompany accounts and transactions. | |
We prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States ("GAAP"), which requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base these estimates on our knowledge of current events and anticipated future events and evaluate and update our assumptions and estimates on an ongoing basis; however, actual results may differ from our estimates. We evaluated all material events subsequent to the date of these consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Premium Revenue Recognition and Premiums Receivable | |||||||||
We earn premium revenue through our participation in Medicaid, Medicaid-related and Medicare programs. Our contracts with various state Medicaid programs generally are multi-year contracts subject to annual renewal provisions. Our Medicare contracts with CMS renew annually. Our Medicare and Medicaid contracts establish fixed, monthly rates per member ("PMPM"). However, our contracts also have additional provisions as described in the sections below. The premiums we receive for each member vary according to the specific government program and are generally determined at the beginning of each new contract renewal period or each state's fiscal year; however, premiums may be adjusted by CMS and state agencies throughout the terms of the contracts in certain cases, as described below. | |||||||||
In some instances, our fixed Medicaid premiums are subject to risk score adjustments based on the acuity of our membership. Generally, the risk score is determined by the state agency's analysis of encounter submissions of processed claims data to determine the acuity of our membership relative to the entire state's Medicaid membership. | |||||||||
We recognize premium revenue in the period in which we are obligated to provide services to our members. We are generally paid by CMS and state agencies in the month in which we provide services. On a monthly basis, we bill members for any premiums for which they are responsible according to their respective plan. We record premiums earned but not received as premiums receivable and record premiums received in advance of the period of service as unearned premiums in the consolidated balance sheets. Unearned premiums are recognized as revenue when we provide the related services. Member premiums are recognized as revenue in the period of service. We estimate, on an on-going basis, the amount of members' billings that may not be collectible, based on our evaluation of historical trends. An allowance is established for the estimated amount that may not be collectible. In addition, we routinely monitor the collectability of specific premiums receivable from CMS and state agencies, including Medicaid receivables for obstetric deliveries and newborns and net receivables for member retroactivity and reduce revenue and premiums receivable by the amount we estimate may not be collectible. We reported premiums receivable net of an allowance for uncollectible premiums receivable of $15.8 million and $14.8 million at December 31, 2013 and 2012, respectively. Historically, the allowance for member premiums receivable has not been material relative to consolidated premium revenue. | |||||||||
Premium payments are based upon eligibility lists produced by CMS and state agencies. We verify these lists to determine | |||||||||
whether we have been paid for the correct premium category and program. From time to time, CMS and state agencies require | |||||||||
us to reimburse them for premiums that we received for individuals who were subsequently determined by us, or by CMS or | |||||||||
state agencies, to be ineligible for any government-sponsored program or to belong to a plan other than ours. Additionally, the | |||||||||
verification of membership may result in additional premiums due to us from CMS and state agencies for individuals who were | |||||||||
subsequently determined to belong to our plan for periods in which we received no premium for those members. We estimate the amount of outstanding retroactivity adjustments and adjust premium revenue based on historical trends, premiums billed, the volume of member and contract renewal activity and other information. We record amounts receivable or payable in premiums receivable, net and other accrued expenses and liabilities in the consolidated balance sheets. In 2011, we reached a settlement with the Georgia Department of Community Health (the "Georgia DCH") to resolve issues with certain premium payments from the inception of the program in 2006 through the date of settlement related to the reconciliation of duplicate member records. The settlement resulted from a comprehensive review and negotiation involving the three health plans that operate in the program. During the year ended December 31, 2011, we recorded additional retroactive premium revenue and a receivable from the Georgia DCH of $29.5 million related to the negotiated settlement. During the year ended December 31, 2012, CMS partially disallowed the settlement and we recorded a reduction of premium revenue of approximately $21.4 million. Amounts receivable from government agencies for member retroactivity were $30.7 million and $28.0 million at December 31, 2013 and 2012, respectively. The amounts due to government agencies for reconciling items were $13.2 million and $19.9 million at December 31, 2013 and 2012, respectively. | |||||||||
Medicaid Provisions | |||||||||
In some instances, our Medicaid fixed base PMPM premiums are subject to risk score adjustments based on the health | |||||||||
profile of our membership. Generally, the risk score is determined by the state agency's analysis of encounter submissions of | |||||||||
processed claims data to determine the acuity of our membership relative to the entire state's Medicaid membership. In some | |||||||||
states, supplemental payments are received for certain services such as high cost drugs and early childhood prevention | |||||||||
screenings. | |||||||||
We earn supplemental premium payments for eligible obstetric deliveries and newborns of our Medicaid members in Georgia, Illinois, Missouri, New York, South Carolina and, until June 30, 2013, Ohio. Each state Medicaid contract specifies how and when these supplemental payments are earned and paid. Upon delivery of a newborn, we notify the state agency according to the contract terms. We recognize supplemental premium revenue in the period that the delivery occurs and the related services are provided to our member. For the years ended December 31, 2013, 2012, and 2011 we recognized approximately $242.9 million, $246.3 million and $236.1 million, respectively, of supplemental Medicaid premium revenue. | |||||||||
MA | |||||||||
The amount of premiums we receive for each MA member is established by contract, although the rates vary according to | |||||||||
a combination of factors, including upper payment limits established by CMS, a member's geographic location, age, gender, | |||||||||
medical history or condition, or the services rendered to the member. Changes to monthly premiums are also based upon a | |||||||||
member's health status as described under "Medicare Risk-Adjusted Premiums" below. We also offer coverage of prescription | |||||||||
drug benefits under the Medicare Part D program as a component of most of our MA plans. See further discussion of revenue | |||||||||
recognition policies specific to Medicare Part D in "PDP" below. | |||||||||
PDP | |||||||||
Substantially all the premium that we receive for Medicare Part D coverage is paid by CMS, and the balance is due from | |||||||||
enrolled members. The premium amounts received from CMS are based on the plan year bid submitted to CMS. The monthly | |||||||||
payment is a risk-adjusted amount per member and is based upon the member's health status as determined by CMS, as more | |||||||||
fully described above under "Medicare Risk Adjusted Premiums". As we do not have access to diagnosis data with respect to | |||||||||
our stand-alone PDP members, we cannot anticipate changes in our members' risk scores. Changes in CMS premiums related to | |||||||||
risk-score adjustments for our stand-alone PDP membership are recognized when the amounts become determinable and | |||||||||
collectability is reasonably assured, which occurs when we are notified by CMS of such adjustments. | |||||||||
Medicare Risk-Adjusted Premiums | |||||||||
CMS employs a risk-adjustment model to determine the premium amount it pays for each MA and PDP member. This model apportions premiums paid to all plans according to the health status of each beneficiary enrolled, resulting in higher scores for members with predictably higher costs. The model uses diagnosis data from inpatient and ambulatory treatment settings to calculate each risk score. We collect claims and encounter data for our MA members and submit the necessary diagnosis data to CMS within prescribed deadlines. After reviewing the respective submissions, CMS establishes the premium payments to MA plans at the beginning of the plan year, and then adjusts premium levels on a retroactive basis. The first retroactive adjustment for a given plan year generally occurs during the third quarter of that year and represents the update of risk scores for the current plan year based on the severity of claims incurred in the prior plan year. CMS then issues a final retroactive risk-adjusted premium settlement for that plan year in the following year. | |||||||||
We develop our estimates for risk-adjusted premiums utilizing historical experience and predictive models as sufficient member risk score data becomes available over the course of each CMS plan year. We populate our models with available risk score data on our members and base risk premium adjustments on risk score data from the previous year. We are not privy to risk score data for members new to our plans in the current plan year; therefore we include assumptions, if estimable, regarding these members' risk scores. We periodically revise our estimates of risk-adjusted premiums as additional diagnosis code information is reported to CMS and adjust our estimates to actual amounts when the ultimate adjustment settlements are either received from CMS or we receive notification from CMS of such settlement amounts. As a result of the variability of factors that determine our estimates for risk-adjusted premiums, the actual amount of the CMS retroactive payment could be materially more or less than our estimates and could have a material effect on our results of operations, financial position and cash flows. We record any changes in estimates in current operations as adjustments to premium revenue. Historically, we have not experienced significant differences between our estimates and amounts ultimately received. However, during third quarter of 2013, we recognized risk adjusted premium received as part of the 2012 final settlement that was higher than our original estimates, mainly related to members in our California MA plan that were new to Medicare in 2012. Additionally, the data provided to CMS to determine members' risk scores is subject to audit by CMS even after the annual settlements occur. Our Florida and Arizona MA plans have been selected by CMS for audits of the 2011 contract year and we anticipate that CMS will conduct audits of other contracts and contract years on an on-going basis. An audit may result in the refund of premiums to CMS. While our experience to date has not resulted in a material refund, future refunds could materially reduce premium revenue in the year in which CMS determines a refund is required and could be material to our results of operations, financial position and cash flows. Premiums receivable in the accompanying consolidated balance sheets include risk adjusted premiums receivables of $107.2 million and $79.6 million as of December 31, 2013 and 2012, respectively. | |||||||||
Minimum Medical Expense and Risk Corridor Provisions | |||||||||
We may be required to refund certain premium revenue to CMS and state government agencies under various contractual and plan arrangements. We estimate the impact of the following arrangements on a monthly basis and reflect any adjustments to premium revenues in current operations. We report the estimated net amounts due to CMS and state agencies in other payables to government partners in the consolidated balance sheets. | |||||||||
Certain of our Florida Medicaid contracts and our Illinois Medicaid contract require us to expend a minimum percentage of premiums on eligible medical benefits expense. To the extent that we expend less than the minimum percentage of the premiums on eligible medical benefits expense, we are required to refund to the state all or some portion of the difference between the minimum and our actual allowable medical benefits expense. We estimate the amounts due to the state agencies as a return of premium based on the terms of our contracts with the applicable state agency. Such amounts are included in the Consolidated Statements of Comprehensive Income as a reduction of premiums. | |||||||||
Our MA and PDP prescription drug plan premiums are subject to risk sharing through the CMS Medicare Part D risk corridor provisions. The risk corridor calculation compares our actual experience to the target amount of prescription drug costs, limited to costs under the standard coverage as defined by CMS, less rebates included in our submitted plan year bid. We receive additional premium from CMS if our actual claims experience is more than 5% above the target amount. We refund premiums to CMS if our actual claims experience is less than 5% below the target amount. We estimate the risk corridor receivable or payable throughout the year as if the annual contract were to terminate at the end of the reporting period and reflect any adjustments to premium in current operations. This estimate provides no consideration of future pharmacy claims experience, but does require us to consider factors that may not be certain, including membership, risk scores, prescription drug events, and rebates. Approximately nine months after the close of the annual plan year, CMS reconciles actual experience to the target amount and any differences are settled between CMS and our plans. We have not historically experienced material differences between the subsequent CMS settlement amount and our estimates. | |||||||||
A summary of other payables to government partners is as follows (in millions): | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Liability to states under minimum medical expense provisions | $ | 21 | $ | 14.5 | |||||
Liability to CMS under risk corridor provision | 16.3 | 73.8 | |||||||
Other payables to government partners | $ | 37.3 | $ | 88.3 | |||||
Medicare Part D Settlements | |||||||||
We receive certain Part D prospective subsidy payments from CMS for our MA and PDP members based on the estimated costs of providing prescription drug benefits over the plan year. After the close of the annual plan year, CMS reconciles our actual experience to the prospective payments we received and any differences are settled between CMS and our plans. As such, these subsidies represent funding from CMS for which we assume no risk. We do not recognize the receipt of these subsidies as premium revenue and we do not recognize the payments of related prescription drug benefits as medical benefits expense. We report the subsidies received and benefits paid on a net basis as funds receivable (held) for the benefit of members in the consolidated balance sheets. We also report the net receipts and payments as a financing activity in our consolidated statements of cash flows. CMS pays the following subsidies prospectively as a fixed PMPM amount based upon the plan year bid submitted by us: | |||||||||
Low-Income Cost Sharing Subsidy—CMS reimburses us for all or a portion of qualifying LIS members' deductible, coinsurance and co-payment amounts above the out-of-pocket threshold. | |||||||||
Catastrophic Reinsurance Subsidy—CMS reimburses us for 80% of the drug costs after a member reaches his or her out-of-pocket catastrophic threshold through a catastrophic reinsurance subsidy. | |||||||||
Coverage Gap Discount Subsidy—We advance the pharmaceutical manufacturers gap coverage discounts at the point of sale. On a periodic basis, CMS bills pharmaceutical manufacturers for discounts advanced by us. Pharmaceutical manufacturers remit payments for invoiced amounts directly to us. CMS reduces subsequent prospective payments made to us by the discount amounts billed to manufacturers. | |||||||||
CMS generally performs the Part D payment reconciliation in the fourth quarter of the following plan year based on prescription drug event data we submit to CMS within prescribed deadlines. After the Part D payment reconciliation for coverage gap discount subsidies, we may continue to report discounts to CMS for 37 months following the end of the plan year. CMS will invoice manufacturers for these discounts and we will be paid through the quarterly manufacturer payments. Historically, we have not experienced material adjustments related to the CMS annual reconciliation of prior plan year low-income cost sharing, catastrophic reinsurance and coverage gap discount subsidies. | |||||||||
Funds receivable (held) for the benefit of members consisted of the following (in millions): | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Low-income cost sharing subsidy | $ | 95.4 | $ | 52.9 | |||||
Catastrophic reinsurance subsidy | 19.6 | 90.4 | |||||||
Coverage gap discount subsidy | (21.5 | ) | (16.4 | ) | |||||
Other, net | — | (0.2 | ) | ||||||
Funds receivable for the benefit of members | $ | 93.5 | $ | 126.7 | |||||
Medical Benefits Expense and Medical Benefits Payable | |||||||||
We recognize the cost of medical benefits in the period in which services are provided, including an estimate of the cost of medical benefits incurred but not reported ("IBNR"). Medical benefits expense includes direct medical expenses and certain medically-related administrative costs. | |||||||||
Direct medical expenses include amounts paid or payable to hospitals, physicians and providers of ancillary services, such as laboratories and pharmacies. We also record direct medical expenses for estimated referral claims related to health care providers under contract with us who are financially troubled or insolvent and who may not be able to honor their obligations for the costs of medical services provided by others. In these instances, we may be required to honor these obligations for legal or business reasons. Based on our current assessment of providers under contract with us, such losses have not been and are not expected to be significant.We record direct medical expense for our estimates of provider settlement due to clarification of contract terms, out-of-network reimbursement, claims payment differences and amounts due to contracted providers under risk-sharing arrangements. We estimate pharmacy rebates earned based on historical utilization of specific pharmaceuticals, current utilization and contract terms and record amounts as a reduction of recorded direct medical expenses. | |||||||||
Consistent with the criteria specified and defined in guidance issued by the Department of Health and Human Services ("HHS") for costs that qualify to be reported as medical benefits under the minimum medical loss ratio provision of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (the "Affordable Care Act"), we record certain medically-related administrative costs such as preventive health and wellness, care management, and other quality improvement costs, as medical benefits expense. All other medically-related administrative costs, such as utilization review services, network and provider credentialing and claims handling costs, are recorded in selling, general, and administrative expense. | |||||||||
Medical benefits payable represents amounts for claims fully adjudicated but not yet paid and estimates for IBNR. Our estimate of IBNR is the most significant estimate included in our consolidated financial statements.We determine our best estimate of the base liability for IBNR utilizing consistent standard actuarial methodologies based upon key assumptions which vary by business segment. Our assumptions include current payment experience, trend factors, and completion factors. Trend factors in our standard actuarial methodologies include contractual requirements, historic utilization trends, the interval between the date services are rendered and the date claims are paid, denied claims activity, disputed claims activity, benefit changes, expected health care cost inflation, seasonality patterns, maturity of lines of business, changes in membership and other factors. | |||||||||
After determining an estimate of the base liability for IBNR, we make an additional estimate, also using standard actuarial techniques, to account for adverse conditions that may cause actual claims to be higher than the estimated base reserve. We refer to this additional liability as the provision for moderately adverse conditions. Our estimate of the provision for moderately adverse conditions captures the potential adverse development from factors such as: | |||||||||
•our entry into new geographical markets; | |||||||||
•our provision of services to new populations such as the aged, blind and disabled; | |||||||||
•variations in utilization of benefits and increasing medical costs; | |||||||||
•changes in provider reimbursement arrangements; | |||||||||
•variations in claims processing speed and patterns, claims payment and the severity of claims; and | |||||||||
•health epidemics or outbreaks of disease such as the flu. | |||||||||
We consider the base actuarial model liability and the provision for moderately adverse conditions as part of our overall assessment of our IBNR estimate to properly reflect the complexity of our business, the number of states in which we operate, and the need to account for different health care benefit packages among those states. We evaluate our estimates of medical benefits payable as we obtain more complete claims information and medical expense trend data over time. Volatility in members' needs for medical services, provider claims submissions and our payment processes result in identifiable patterns emerging several months after the causes of deviations from our assumed trends occur. Changes in our estimates of medical benefits payable cannot typically be explained by any single factor, but are the result of a number of interrelated variables, all of which influence the resulting medical cost trend. We record differences between actual experience and estimates used to establish the liability, which we refer to as favorable and unfavorable prior period developments, as increases or decreases to medical benefits expense in the period we identify the differences. | |||||||||
Reinsurance | |||||||||
We cede certain premiums and medical benefits to other insurance companies under various reinsurance agreements in order to increase our capacity to write larger risks and maintain our exposure to loss within our capital resources. We are contingently liable in the event the reinsurance companies do not meet their contractual obligations. We evaluate the financial condition of the reinsurance companies on a regular basis and only contract with well-known, well-established reinsurance companies that are supported by strong financial ratings. | |||||||||
Equity-Based Employee Compensation | |||||||||
During the second quarter of 2013, our stockholders approved the WellCare Health Plans, Inc. 2013 Incentive Compensation Plan (the "2013 Plan"). Upon approval of the 2013 Plan, a total of 2,500,000 shares of our common stock were available for issuance pursuant to the 2013 Plan, minus any shares subject to outstanding awards granted on or after January 1, 2013 under our 2004 Equity Incentive Plan ("the Prior Plan"). In addition, shares subject to awards forfeited under the Prior Plan will become available for issuance under the 2013 Plan. No further awards are permitted to be granted under our Prior Plan. The Compensation Committee of our Board of Directors (the "Compensation Committee") awards certain equity-based compensation under our stock plans, including stock options, restricted stock units ("RSUs"), performance stock units ("PSUs") and market stock units ("MSUs"). We estimate equity-based compensation expense based on awards ultimately expected to vest. We make assumptions of forfeiture rates at the time of grant and continuously reassess our assumptions based on actual forfeiture experience. | |||||||||
We estimate compensation cost for stock options, RSUs and MSUs based on the grant date fair value and recognize the expense ratably over the vesting period of the award. For stock options, the grant date fair value is measured using the Black-Scholes options-pricing model. For RSUs, the grant date fair value is based on the closing price of our common stock on the date of grant, and these awards typically vest one to three years from the date of grant. For MSUs, the grant date fair value is measured using a Monte Carlo simulation approach which estimates the fair value of awards based on randomly generated simulated stock-price paths through a lattice-type structure. MSUs expected to vest are recognized as expense on a straight-line basis over the vesting period, which is generally three years. The number of shares of common stock earned upon vesting is determined based on the ratio of the Company's common stock price during the last 30 days market trading days of the calendar year immediately preceding the vesting date to the comparable common stock price as of the grant date, applied to the base units granted. The performance ratio is capped at 150% or 200%, depending on the grant date. If our common stock price declines by more than 50% over the performance period, no shares are earned by the recipient. | |||||||||
At its sole discretion, the Compensation Committee sets certain financial and quality-based performance goals and a target award amount for each award of PSUs. PSUs generally cliff-vest three years from the grant date based on the achievement of the performance goals and conditioned on the employee's continued service through the vesting date. The actual number of common stock shares earned upon vesting will range from zero shares up to 150% or 200% of the target award, depending on the award date. Our PSUs are subject to variable accounting since they do not have a grant date fair value for accounting purposes due to the subjective nature of the terms of the PSUs which precludes a mutual understanding of the key terms and conditions. We recognize expense for PSUs ultimately expected to vest over the requisite service period based our estimates of progress made towards the achievement of the predetermined performance measures and changes in the market price of our common stock. | |||||||||
Member Acquisition Costs | |||||||||
We incur member acquisition costs, including internal commissions, external agent commissions on renewal policies, agent referral commissions, policy issuance and other administrative costs, in the acquisition and retention of our members. We record these costs as selling, general and administrative expense in the period we incur them. | |||||||||
We advance commissions to external agents and brokers for the acquisition of new members to our MA and PDP plans and defer amortization of these costs to the period in which we earn associated premium revenue, which is generally not more than one year. | |||||||||
Advertising Costs | |||||||||
We record the production costs of advertising activities as selling, general and administrative expense when incurred. We expense the costs of advertising campaigns in the period the advertising takes place. We recorded advertising and related marketing expense of $3.2 million, $7.2 million, and $8.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Medicaid Premium Taxes | |||||||||
Premium rates established in the Medicaid contracts with Georgia, Hawaii and New York, and, until June 30, 2013, Ohio, include, or included, an assessment or tax on Medicaid premiums. We recognize the premium tax assessment as expense in the period we earn the related premium revenue and remit the taxes back to the state agencies on a periodic basis. We incurred Medicaid premium taxes of $75.7 million, $82.2 million and $76.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Income Tax Expense (Benefit) | |||||||||
We record income tax expense (benefit) as incurred based on enacted tax rates, estimates of book-to-tax differences in income, and projections of income that will be earned in each taxing jurisdiction. We recognize deferred tax assets and liabilities for the estimated future tax consequences of differences between the carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using tax rates applicable to taxable income in the years in which we expect to recover or settle those temporary differences. We record a valuation allowance on deferred taxes if we determine it is more likely than not that we will not fully realize the future benefit of deferred tax assets. We file tax returns after the close of our fiscal year end and adjust our estimated tax receivable or liability to the actual tax receivable or due per the filed state and federal tax returns. Historically, we have not experienced significant differences between our estimates of income tax expense (benefit) and actual amounts incurred. | |||||||||
State and federal taxing authorities may challenge the positions we take on our filed tax returns. We evaluate our tax positions and only recognize a tax benefit if it is more likely than not that a tax audit will sustain our conclusion. Based on our evaluation of tax positions, we believe that potential tax exposures have been recorded appropriately. State and federal taxing authorities may propose additional tax assessments based on periodic audits of our tax returns. We believe our tax positions comply with applicable tax law in all material aspects and we will vigorously defend our positions on audit. The ultimate resolution of these audits may materially impact our financial position, results of operations or cash flows. We have not experienced material adjustments to our consolidated financial statements as a result of these audits. | |||||||||
We participate in the Internal Revenue Service ("IRS") Compliance Assurance Program ("CAP"). The objective of CAP is to reduce taxpayer burden and uncertainty by working with the IRS to ensure tax return accuracy prior to filing, thereby reducing or eliminating the need for post-filing examinations. | |||||||||
Cash and Cash Equivalents | |||||||||
We classify unrestricted cash and short-term investments with original maturities of three months or less as cash and cash equivalents in the consolidated balance sheets. We record cash and cash equivalents at cost, which approximates fair value. | |||||||||
Investments | |||||||||
We classify our fixed maturity securities, including short-term, long-term, and restricted investments, as available-for-sale and report them at fair value. We record unrealized gains and losses on securities, net of deferred income taxes, as a separate component of accumulated other comprehensive loss in the consolidated balance sheets. We record investment income when earned and classify investment income earned but not received in prepaid expenses and other current assets in the consolidated balance sheets. We may purchase fixed maturity securities at a premium or discount. We amortize these premiums and discounts as adjustments to investment income over the estimated remaining term of the securities. We determine realized gains and losses on sales of securities on a specific identification basis. | |||||||||
We determine the fair value of fixed maturity securities based on quoted prices in active markets or market prices provided by a third-party pricing service. The third-party pricing service determines market prices using inputs such as reported trades, benchmark yields, issuer spreads, bids, offers, estimated cash flows and prepayment spreads. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, third party pricing services will normally derive the security prices through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, the pricing services may use matrix or model processes to develop a security price using future cash flow expectations based upon collateral performance and discount this at an estimated market rate. Our long-term investments include municipal note investments with an auction reset feature ("auction-rate securities"). We record the fair value of these auction-rate securities based on a discounted cash flow analysis. | |||||||||
We regularly compare the fair value of our investments to amortized cost of those investments. The evaluation of impairment is a quantitative and qualitative process which is subject to risk and uncertainties. Our fixed maturity investments are exposed to four primary sources of investment risk: credit, interest rate, liquidity and market valuation. The financial statement risks are those associated with the recognition of impairments and income, as well as the determination of fair values. | |||||||||
We perform a case-by-case evaluation of the underlying reasons for the decline in fair value and consider a wide range of factors about the security issuer, including assumptions and estimates about the operations of the issuer and its future earnings potential. We use our best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Our evaluation of impairment includes, but is not limited to: | |||||||||
• | the length of time and the extent to which the market value has been below cost; | ||||||||
• | the potential for impairments of securities when the issuer is experiencing significant financial difficulties; | ||||||||
• | the potential for impairments in an entire industry sector or sub-sector; | ||||||||
• | the potential for impairments in certain economically depressed geographic locations; | ||||||||
• | the potential for impairments of securities where the issuer, series of issuers or industry has suffered a catastrophic type of loss or has exhausted natural resources; | ||||||||
• | unfavorable changes in forecasted cash flows on asset-backed securities; and | ||||||||
• | other subjective factors, including concentrations and information obtained from regulators and rating agencies. | ||||||||
We recognize impairments of securities when we consider a decline in fair value below the amortized cost basis to be other-than-temporary. If we intend to sell a security, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, we recognize an other-than-temporary impairment (OTTI) in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If we do not intend to sell the security and it is more likely than not that we will not be required to sell the security before recovery of its amortized cost basis, but the present value of the cash flows expected to be collected is less than the amortized cost basis of the security (referred to as the credit loss), we conclude an OTTI has occurred. In this instance, we bifurcate the total OTTI into the amount related to the credit loss, which we recognize in earnings as investment income, net, with the remaining amount of the total OTTI attributed to other factors (referred to as the noncredit portion) recognized as a separate component in other comprehensive income. After the recognition of an OTTI, we account for the security as if it had been purchased on the measurement date of the OTTI, with an amortized cost basis equal to the previous amortized cost basis less than the OTTI recognized in earnings. We did not realize any OTTI for the years ended December 31, 2013, 2012 or 2011. | |||||||||
Restricted Investments | |||||||||
As a condition for licensure, we are required to maintain certain funds on deposit or pledged to various state agencies. Certain of our state contracts require the issuance of surety bonds. We record our restricted investments, which include cash, cash equivalents, and other short-term investments, at fair value. We classify restricted investments as long-term regardless of the contractual maturity date of the securities held, due to the nature of the states' requirements. | |||||||||
Prepaid Expenses and Other Current Assets | |||||||||
Prepaid expenses and other current assets, net, are comprised of the following (in millions): | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Prepaid expenses | $ | 58.4 | $ | 61.4 | |||||
Pharmaceutical coverage gap discounts receivable | 13.5 | 7.2 | |||||||
Advances to providers | 6.8 | 5.6 | |||||||
Other | 37.6 | 23.6 | |||||||
116.3 | 97.8 | ||||||||
Allowance for uncollectible advances to providers | (1.3 | ) | (1.5 | ) | |||||
Prepaid expenses and other current assets, net | $ | 115 | $ | 96.3 | |||||
We record pharmaceutical coverage gap discounts receivable for amounts billed to pharmaceutical manufacturers by CMS for Medicare Part D coverage gap discounts advanced by us. Pharmaceutical manufacturers remit payments directly to us (see "Revenue Recognition - Medicare Prospective Premium Payments"). We also advance amounts to certain health care providers that are under contract with us to provide medical benefits to our members. We perform an analysis of our ability to collect outstanding advances based upon a review of the financial condition and solvency of the provider. We record a valuation allowance for advances we believe may not be collectible. | |||||||||
Property, Equipment and Capitalized Software, net | |||||||||
Property, equipment and capitalized software are stated at historical cost, net of accumulated depreciation. We capitalize certain costs incurred in the development of internal-use software, including external direct costs of materials and services and payroll costs of employees devoted to specific software development. We expense other software development costs, such as training and data conversion costs, as incurred. We capitalize the costs of improvements that extend the useful lives of the related assets. | |||||||||
We record depreciation expense using the straight-line method over the estimated useful lives of the related assets, which ranges from three to ten years for leasehold improvements, five for furniture and equipment, and three to five years for computer equipment and software. We include amortization of equipment under capital leases in depreciation expense. We record maintenance and repair costs as selling, general and administrative expense when incurred. | |||||||||
On an ongoing basis, we review events or changes in circumstances that may indicate that the carrying value of an asset may not be recoverable. If the carrying value of an asset exceeds the sum of estimated undiscounted future cash flows, we recognize an impairment loss in the current period for the difference between estimated fair value and carrying value. If assets are determined to be recoverable but the useful lives are shorter than we originally estimated, we depreciate the remaining net book value of the asset over the newly determined remaining useful lives. During the third quarter of 2013, we determined that we would be discontinuing certain projects going forward and, as a result, the software and development costs acquired to support these projects would not be fully recoverable. In accordance with the guidance for the impairment of long-lived assets, we evaluated these assets for recovery and recorded a pre-tax asset impairment charge of $9.0 million, which is included in selling, general and administrative expenses in our Consolidated Statement of Comprehensive Income for for the year ended December 31, 2013. We did not recognize any impairment losses during the years ended December 31, 2012 or 2011. | |||||||||
Goodwill and Intangible Assets | |||||||||
Goodwill represents the excess of the cost over the fair market value of net assets acquired. Goodwill recorded at December 31, 2013 was $236.8 million, which consisted of $126.8 million and $110.0 million attributable to our Medicaid and Medicare Advantage reporting segments, respectively. Goodwill recorded at December 31, 2012 was $223.8 million, which consisted of $111.1 million and $112.7 million attributable to our Medicaid and Medicare Advantage reporting segments, respectively. | |||||||||
Other intangible assets include provider networks, broker networks, trademarks, state contracts, non-compete agreements, licenses and permits. We amortize other intangible assets over their estimated useful lives ranging from approximately one to 15 years. These assets are allocated to reporting segments for impairment testing purposes. | |||||||||
We review goodwill and intangible assets for impairment at least annually, or more frequently if events or changes in our business climate occur that may potentially affect the estimated useful life or the recoverability of the remaining balance of goodwill or intangible assets. Such events or changes in circumstances would include significant changes in membership, state funding, federal and state government contracts and provider networks. We believe that such assets are not impaired as of December 31, 2013. To determine whether goodwill is impaired, we perform a multi-step impairment test. First, we can elect to perform a qualitative assessment of each reporting unit to determine whether facts and circumstances support a determination that their fair values are greater than their carrying values. If the qualitative analysis is not conclusive, or if we elect to proceed directly with quantitative testing, we will then measure the fair values of the reporting units using a two-step approach. In the first step, we determine the fair value of the reporting unit using both income and market approaches. We calculate fair value based on our assumptions of key factors such as projected revenues and the discount factor. While we believe these assumptions and estimates are appropriate, other assumptions and estimates could be applied and may produce significantly different results. If the fair value of the reporting unit is less than its carrying value, we measure and record the amount of the goodwill impairment, if any, by comparing the implied fair value of the reporting unit's goodwill to the carrying value. We perform our annual goodwill impairment test based on our financial position and results of operations through the second quarter of each year, which generally coincides with the finalization of federal and state contract negotiations and our initial budgeting process. | |||||||||
In 2013, we elected to bypass the optional qualitative fair value assessment and conducted our annual quantitative test for goodwill impairment during the third quarter of 2013. Based on the results of our quantitative test, we determined that the fair values of our reporting units exceeded their carrying values and therefore no further testing was required, and we believe that such assets are not impaired as of December 31, 2013. | |||||||||
Deposits and Other Assets | |||||||||
Deposits and other assets as of December 31, 2013 includes approximately $133.6 million advanced on December 31, 2013 in connection with the Windsor acquisition, which closed on January 1, 2014. The advance was paid in accordance with the terms of the purchase agreement; however, control of ownership did not transfer to us until the January 1, 2014 closing date. The $133.6 million is included in "Cash advanced for acquisitions" within cash used in investing activities within our Consolidated Statement of Cash Flows for the year ended December 31, 2013. | |||||||||
Pro Forma Financial Information | |||||||||
The results of operations and financial condition for our 2012 and 2013 acquisitions have been included in our consolidated financial statements since the respective acquisition dates. The unaudited pro forma financial information presented below assumes that the acquisitions occurred as of January 1, 2012. The pro forma adjustments include the pro forma effect of the amortization of finite-lived intangible assets arising from the purchase price allocations, adjustments necessary to align the acquired companies' accounting policies to our accounting policies and the associated income tax effects of the pro forma adjustments. The following unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations that would have occurred had the acquisitions been consummated at the beginning of the periods presented. | |||||||||
Pro forma- unaudited | |||||||||
For the Years Ended December 31, | |||||||||
(in millions, except per share data) | 2013 | 2012 | |||||||
Premium revenues | $ | 9,600.00 | $ | 8,140.70 | |||||
Net earnings | $ | 171.8 | $ | 189.6 | |||||
Earnings per share: | |||||||||
Basic | $ | 3.95 | $ | 4.4 | |||||
Diluted | $ | 3.9 | $ | 4.33 | |||||
Pending Acquisitions | |||||||||
In September 2013, we entered into an agreement to acquire certain assets of Healthfirst Health Plan of New Jersey, Inc.("Healthfirst NJ"). As of December 2013, Healthfirst NJ serves approximately 47,000 Medicaid members in 12 counties in the state. The acquisition is expected to close during the second quarter of 2014, subject to customary regulatory approvals. Upon closure of the transaction, Healthfirst NJ’s member and physician rosters will be acquired by us and Healthfirst NJ will wind down operations. | |||||||||
Recently Adopted Accounting Standards | |||||||||
In December 2011, the Financial Accounting Standards Board ("FASB") issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities" and in January 2013 issued ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," which limits the scope of the new offsetting disclosure requirements. This amended guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. We adopted this guidance effective January 1, 2013. The adoption of this guidance did not have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||
In July 2012, the FASB issued ASU 2012-02, "Testing Indefinite-Lived Intangible Assets for Impairment," which allows an entity to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity would not be required to calculate the fair value of indefinite-lived intangible assets unless the entity determines, based on qualitative assessment, that it is not more likely than not, the indefinite-lived intangible asset is impaired. We adopted this guidance effective January 1, 2013. The adoption of this guidance did not have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||
In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires preparers to report information about reclassifications out of accumulated other comprehensive income ("AOCI"). The guidance also requires companies to report changes in AOCI balances. We adopted this guidance effective January 1, 2013. The adoption of this guidance did not have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||
Recently Issued Accounting Standards | |||||||||
In July 2013, the FASB issued ASU 2013-11, "Incomes Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This update addresses the diversity in practice regarding financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance requires an unrecognized tax benefit, or a portion thereof, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent the deferred tax asset is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position; the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with the deferred tax asset. The amendments in this standard are effective for reporting periods beginning after December 15, 2013, with early adoption permitted. We do not believe the adoption of this standard will have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||
In February 2013, the FASB issued ASU 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date." This update provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date. The guidance in this update also requires the entity to disclose the nature and amount of the obligation, as well as other information about such obligations. The guidance is effective for fiscal years beginning after December 15, 2013, with early adoption permitted. We will adopt this guidance effective January 1, 2014. We do not believe the adoption of this standard will have a material impact on our consolidated financial position, results of operations or cash flows. | |||||||||
In July 2011, the FASB issued ASU 2011-06, "Other Expenses – Fees Paid to the Federal Government by Health Insurers." This update addresses accounting for the annual fees mandated by the Affordable Care Act. The Affordable Care Act imposes an annual fee on health insurers, payable to the U.S. government, calculated on net premiums and third-party administrative agreement fees. The updated standard requires that the liability for the fee be estimated and accrued in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense. The fees are initiated for calendar years beginning January 1, 2014, and the amendments provided by this update become effective for calendar years beginning after December 31, 2013. We currently estimate that we will incur approximately between approximately $125 to $135 million in such fees in 2014, based on our estimated share of total 2013 industry premiums. However, the final amount of the industry fee assessment will not be determined until August 2014. |
Acquisitions_Notes
Acquisitions (Notes) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
ACQUISITIONS | ' | |||
ACQUISITIONS | ||||
Easy Choice | ||||
On November 9, 2012, we acquired all outstanding interests in America's 1st Choice California Holdings, LLC, the sole shareholder of Easy Choice Health Plan, Inc. (collectively, "Easy Choice"). As of December 31, 2013, we served approximately 56,000 Easy Choice MA plan members in California. We included the results of Easy Choice's operations from the date of acquisition in our consolidated financial statements. | ||||
The following table summarizes the allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. | ||||
Cash and cash equivalents | $ | 23.5 | ||
Investments | 5.2 | |||
Premiums receivable, net | 4.4 | |||
Other intangible assets | 47.7 | |||
Goodwill | 110 | |||
Other assets | 11.6 | |||
Total assets acquired | 202.4 | |||
Medical benefits payable | (26.8 | ) | ||
Accrued expenses and other payables | (5.6 | ) | ||
Other payables to government partners | (2.3 | ) | ||
Deferred tax liability | (17.6 | ) | ||
Fair value of liabilities assumed | (52.3 | ) | ||
Fair value of net assets acquired | 150.1 | |||
In connection with the Easy Choice acquisition, we recorded $47.7 million of identified intangible assets. We valued the intangible assets using a discounted future cash flow analysis based on our consideration of historical financial results and expected industry and market trends. Those definite-lived intangible assets include a state contract of $38.1 million (15-year useful life), non-compete agreements of $4.5 million (5-year useful life), trademarks of $1.9 million (4-year useful life), broker networks of $1.9 million (10-year useful life) and provider networks of $1.3 million (15-year useful life). We discounted the future cash flows by a weighted-average cost of capital based on an analysis of the cost of capital for guideline companies within our industry. We amortize the intangible assets on a straight-line basis over the period we expect these assets to contribute directly or indirectly to the future cash flows. The weighted average amortization period for these intangibles was 13.4 years. We recorded $110.0 million of goodwill for the excess of the purchase price over the estimated fair value of net assets and identifiable intangible assets acquired and assigned the goodwill to our Medicare segment. Recorded goodwill and other intangible assets related to the Easy Choice acquisition are not deductible for tax purposes. | ||||
WellCare of South Carolina | ||||
On January 31, 2013, we acquired all outstanding stock of WellCare of South Carolina, Inc. ("WCSC"), formerly UnitedHealthcare of South Carolina, Inc., a South Carolina Medicaid subsidiary of UnitedHealth Group Incorporated. During 2013, WCSC participated in the South Carolina Healthy Connections Choices program in 39 of the state's 46 counties. As of December 31, 2013, WCSC membership approximated 50,000. We included the results of WCSC's operations from the date of acquisition in our consolidated financial statements. We have not finalized certain aspects of the purchase price, and, therefore, the amount of goodwill is subject to change. | ||||
The following table summarizes the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. | ||||
Cash and cash equivalents | $ | 11.5 | ||
Investments | 37.9 | |||
Premiums receivable, net | 2.1 | |||
Other intangible assets | 9.5 | |||
Goodwill | 12.7 | |||
Other assets | 2.4 | |||
Total assets acquired | 76.1 | |||
Medical benefits payable | (28.5 | ) | ||
Accrued expenses and other payables | (0.7 | ) | ||
Fair value of liabilities assumed | (29.2 | ) | ||
Fair value of net assets acquired | $ | 46.9 | ||
In connection with the WCSC acquisition, we recorded $9.5 million for the preliminary valuation of identified intangible assets, including state contracts of $8.7 million (10-year useful life) and provider networks of $0.8 million (15-year useful life). We valued the intangible assets using a discounted future cash flow analysis based on our consideration of historical financial results and expected industry and market trends. We discounted the future cash flows by a weighted-average cost of capital based on an analysis of the cost of capital for guideline companies within our industry. We amortize the intangible assets on a straight-line basis over the period we expect these assets to contribute directly or indirectly to the future cash flows. The weighted average amortization period for these intangibles was 10.4 years. | ||||
We recorded $12.7 million for the preliminary valuation of goodwill, assigned to our Medicaid segment, for the excess of the purchase price over the estimated fair value of net tangible assets and identifiable intangible assets acquired. The recorded goodwill and other intangible assets related to the WCSC acquisition are deductible for tax purposes. Additionally, as a result of certain purchase accounting adjustments recorded subsequent to the WCSC acquisition, we recognized a $2.6 million receivable to us from the seller as an adjustment to the purchase price. | ||||
Missouri Care | ||||
On March 31, 2013, we acquired all outstanding stock of Missouri Care, Incorporated, a subsidiary of Aetna Inc. ("Missouri Care"), which participates in the Missouri HealthNet Medicaid program. We began serving Missouri Care members effective April 1, 2013. As of December 31, 2013, Missouri Care membership approximated 104,000. | ||||
We have not finalized the accounting for our acquisition of Missouri Care. We are in the process of finalizing certain aspects of the purchase price. As such, the preliminary measurement of net assets acquired and goodwill are subject to change. | ||||
The following table summarizes the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. | ||||
Cash and cash equivalents | $ | 17.8 | ||
Premiums receivable, net | 33.9 | |||
Other intangible assets | 7.1 | |||
Goodwill | 3 | |||
Other assets | 1.6 | |||
Total assets acquired | 63.4 | |||
Medical benefits payable | (43.1 | ) | ||
Fair value of liabilities assumed | (43.1 | ) | ||
Fair value of net assets acquired | $ | 20.3 | ||
In connection with the Missouri Care acquisition, we recorded $7.1 million for the preliminary valuation of identified intangible assets. Those definite-lived intangible assets include state contracts of $4.8 million (10-year useful life), provider networks of $1.3 million (15-year useful life) and trademarks of $1.0 million (15-year useful life). We valued the intangible assets using a discounted future cash flow analysis based on our consideration of historical financial results and expected industry and market trends. We discounted the future cash flows by a weighted-average cost of capital based on an analysis of the cost of capital for guideline companies within our industry. We amortize the intangible assets on a straight-line basis over the period we expect these assets to contribute directly or indirectly to the future cash flows. The weighted average amortization period for these intangibles was 11.6 years. | ||||
We recorded $3.0 million for the preliminary valuation of goodwill, assigned to our Medicaid segment, for the excess of the purchase price over the estimated fair value of net tangible assets and identifiable intangible assets acquired. The recorded goodwill and other intangible assets related to the Missouri Care acquisition are deductible for tax purposes. | ||||
Desert Canyon | ||||
On December 31, 2012, we acquired certain assets of Arcadian Health Plan, Inc.'s Desert Canyon Community Care ("Desert Canyon") MA plans. We began providing services to plan members effective January 1, 2013. As of December 31, Desert Canyon membership approximated 4,000. | ||||
In connection with the Desert Canyon acquisition, we recorded $2.0 million of identified intangible assets. Those definite-lived intangible assets include a state contract of $1.7 million (10-year useful life) and provider networks of $0.3 million (15-year useful life). We valued the intangible assets using a discounted future cash flow analysis based on our consideration of historical financial results and expected industry and market trends. We discounted the future cash flows by a weighted-average cost of capital based on an analysis of the cost of capital for guideline companies within our industry. We amortize the intangible assets on a straight-line basis over the period we expect these assets to contribute directly or indirectly to the future cash flows. The weighted average amortization period for these intangibles was 10.8 years. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
SEGMENT REPORTING | ' | |||||||||||
SEGMENT REPORTING | ||||||||||||
On a regular basis, we evaluate discrete financial information and assess the performance of our three reportable segments, Medicaid, MA and PDP, to determine the most appropriate use and allocation of Company resources. | ||||||||||||
Medicaid | ||||||||||||
Our Medicaid segment includes plans for beneficiaries of Temporary Assistance for Needy Families ("TANF"), Supplemental Security Income ("SSI"), Aged Blind and Disabled ("ABD") and other state-based programs that are not part of the Medicaid program, such as Children's Health Insurance Program ("CHIP") and Managed Long-Term Care ("MLTC") programs. TANF generally provides assistance to low-income families with children. ABD and SSI generally provide assistance to low-income aged, blind or disabled individuals. CHIP programs provide assistance to qualifying families who are not eligible for Medicaid because their income exceeds the applicable income thresholds. The MLTC program is designed to help people with chronic illnesses or who have disabilities and need health and long-term care services, such as home care or adult day care, to enable them to stay in their homes and communities as long as possible. | ||||||||||||
Medicaid premium revenue attributable to Florida, Georgia, and for 2013 and 2012, Kentucky, each individually accounts for 10% or more of our consolidated premium revenue, net of premium tax, as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Florida | 12% | 13% | 15% | |||||||||
Georgia | 16% | 20% | 24% | |||||||||
Kentucky | 14% | 10% | 1% | |||||||||
The state of Florida renewed our Florida Medicaid contracts for a three-year period beginning September 1, 2012 through August 31, 2015. In February 2014, we executed a contract with the Florida Agency for Health Care Administration ("AHCA") to provide Medicaid services in eight out of the state’s 11 regions. We expect that starting in the second quarter of 2014, two to three regions will be launched per month, and all regions should be launched by late summer or early fall of 2014. We expect our previous Florida contracts to be terminated early in connection with the implementation of the new program. | ||||||||||||
The Georgia Department of Community Health (the "Georgia DCH") exercised its option in June 2013 to extend the term of our Georgia Medicaid contract until June 30, 2014. The Georgia DCH also indicated its intent to amend our Georgia Medicaid contract to include two additional one-year renewal options, exercisable by the Georgia DCH, which could potentially extend the contract term to June 30, 2016. | ||||||||||||
Our primary Kentucky contract commenced in July 2011 has an initial three-year term and provides for four additional one-year option terms, exercisable upon mutual agreement of the parties, which potentially extends the total term until July 2018. We began serving Medicaid beneficiaries in Region 3 of the Commonwealth of Kentucky on January 1, 2013. | ||||||||||||
MA | ||||||||||||
Medicare is a federal program that provides eligible persons age 65 and over and some disabled persons with a variety of hospital, medical and prescription drug benefits. MA is Medicare's managed care alternative to the original Medicare program, which provides individuals standard Medicare benefits directly through CMS. Our MA CCPs generally require members to seek health care services and select a primary care physician from a network of health care providers. In addition, we offer coverage of prescription drug benefits under the Medicare Part D program as a component of most of our MA plans. | ||||||||||||
PDP | ||||||||||||
We offer stand-alone Medicare Part D coverage to Medicare-eligible beneficiaries in our PDP segment. The Medicare Part D prescription drug benefit is supported by risk sharing with the federal government through risk corridors designed to limit the losses and gains of the participating drug plans and by reinsurance for catastrophic drug costs. The government subsidy is based on the national weighted average monthly bid for this coverage, adjusted for risk factor payments. Additional subsidies are provided for dually-eligible beneficiaries and specified low-income beneficiaries. The Part D program offers national in-network prescription drug coverage that is subject to limitations in certain circumstances. | ||||||||||||
Summary of Financial Information | ||||||||||||
We allocate goodwill and other intangible assets to our reportable operating segments. We do not allocate any other assets and liabilities, investment and other income, or selling, general and administrative, depreciation and amortization, or interest expense to our reportable operating segments. The Company's decision-makers primarily use premium revenue, medical benefits expense and gross margin to evaluate the performance of our reportable operating segments. A summary of financial information for our reportable operating segments through the gross margin level and a reconciliation to income before income taxes is presented in the tables below. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Premium revenue: | ||||||||||||
Medicaid | $ | 5,661.20 | $ | 4,471.20 | $ | 3,581.50 | ||||||
MA | 3,071.00 | 1,936.40 | 1,479.80 | |||||||||
PDP | 776.9 | 992.6 | 1,036.80 | |||||||||
Total premium revenue | 9,509.10 | 7,400.20 | 6,098.10 | |||||||||
Medical benefits expense: | ||||||||||||
Medicaid | 4,927.40 | 3,892.00 | 2,890.10 | |||||||||
MA | 2,659.50 | 1,630.60 | 1,198.80 | |||||||||
PDP | 671.7 | 781.3 | 859.1 | |||||||||
Total medical benefits expense | 8,258.60 | 6,303.90 | 4,948.00 | |||||||||
Gross margin: | ||||||||||||
Medicaid | 733.8 | 579.2 | 691.4 | |||||||||
MA | 411.5 | 305.8 | 281 | |||||||||
PDP | 105.2 | 211.3 | 177.7 | |||||||||
Total gross margin | 1,250.50 | 1,096.30 | 1,150.10 | |||||||||
Investment and other income | 18.8 | 8.8 | 8.7 | |||||||||
Other expenses | (988.2 | ) | (808.7 | ) | (751.2 | ) | ||||||
Income from operations | $ | 281.1 | $ | 296.4 | $ | 407.6 | ||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
EARNINGS PER SHARE | |||||||||
We compute basic net income per common share on the basis of the weighted-average number of unrestricted common shares outstanding. We compute diluted net income per common share on the basis of the weighted-average number of unrestricted common shares outstanding plus the dilutive effect of outstanding stock options, restricted stock, RSUs, MSUs and PSUs using the treasury stock method. | |||||||||
We calculated weighted-average common shares outstanding — diluted as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Weighted-average common shares outstanding — basic | 43,535,927 | 43,104,216 | 42,817,466 | ||||||
Dilutive effect of: | |||||||||
Unvested restricted stock units, market stock units and performance stock units | 342,346 | 526,030 | 305,622 | ||||||
Stock options | 122,290 | 196,039 | 205,668 | ||||||
Weighted-average common shares outstanding — diluted | 44,000,563 | 43,826,285 | 43,328,756 | ||||||
Anti-dilutive stock options, restricted stock awards and performance equity awards excluded from computation | 79,978 | 57,455 | 63,834 | ||||||
INVESTMENTS
INVESTMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||
The Company considers all of its investments as available-for-sale securities. The amortized cost, gross unrealized gains or losses and estimated fair value of short-term and long-term investments by security type are summarized in the following tables. | ||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Auction rate securities | $ | 34.2 | $ | — | $ | (2.4 | ) | $ | 31.8 | |||||||||||
Certificates of deposit | 1.6 | — | — | 1.6 | ||||||||||||||||
Corporate debt and other securities | 104.5 | 0.1 | (0.1 | ) | 104.5 | |||||||||||||||
Money market funds | 43.4 | — | — | 43.4 | ||||||||||||||||
Municipal securities | 108.9 | — | — | 108.9 | ||||||||||||||||
Variable rate bond fund | 84.9 | 0.4 | — | 85.3 | ||||||||||||||||
U.S. government securities | 19.5 | 0.1 | — | 19.6 | ||||||||||||||||
Total | $ | 397 | $ | 0.6 | $ | (2.5 | ) | $ | 395.1 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Auction rate securities | $ | 34.2 | $ | — | $ | (2.2 | ) | $ | 32 | |||||||||||
Corporate debt and other securities | 62.2 | 0.1 | — | 62.3 | ||||||||||||||||
Money market funds | 9.5 | — | — | 9.5 | ||||||||||||||||
Municipal securities | 118.8 | — | (0.1 | ) | 118.7 | |||||||||||||||
Variable rate bond fund | 75 | 0.7 | — | 75.7 | ||||||||||||||||
U.S. government securities | 18.7 | 0.1 | — | 18.8 | ||||||||||||||||
Total | $ | 318.4 | $ | 0.9 | $ | (2.3 | ) | $ | 317 | |||||||||||
Contractual maturities of long-term available-for-sale investments at December 31, 2013 are as follows: | ||||||||||||||||||||
Total | Within | 1 Through 5 | 5 Through 10 | Thereafter | ||||||||||||||||
1 Year | Years | Years | ||||||||||||||||||
Auction rate securities | $ | 31.8 | $ | — | $ | — | $ | — | $ | 31.8 | ||||||||||
Certificates of deposit | 1.6 | 1.4 | 0.2 | — | — | |||||||||||||||
Corporate debt and other securities | 104.5 | 81 | 23.5 | — | — | |||||||||||||||
Money market funds | 43.4 | 43.4 | — | — | — | |||||||||||||||
Municipal securities | 108.9 | 99.9 | 9 | — | — | |||||||||||||||
Variable rate bond fund | 85.3 | 85.3 | — | — | — | |||||||||||||||
U.S. government securities | 19.6 | 3.7 | 15.9 | — | — | |||||||||||||||
Total | $ | 395.1 | $ | 314.7 | $ | 48.6 | $ | — | $ | 31.8 | ||||||||||
Actual maturities may differ from contractual maturities due to the exercise of pre-payment options. | ||||||||||||||||||||
Excluding investments in U.S. government securities, we are not exposed to any significant concentration of credit risk in our fixed maturities portfolio. Our long-term investments include $31.8 million estimated fair value of municipal note securities with an auction reset feature ("auction rate securities"), which were issued by various state and local municipal entities for the purpose of financing student loans, public projects and other activities. Liquidity for these auction rate securities is typically provided by an auction process which allows holders to sell their notes and resets the applicable interest rate at pre-determined intervals, usually every seven or 35 days. We consider our auction rate securities to be in an inactive market as auctions continued to fail in 2013. Our auction rate securities have been in an unrealized loss position for more than twelve months. Two auction rate securities with an aggregate par value of $22.6 million have investment grade security credit ratings and one auction rate security with a par value of $11.6 million has a credit rating below investment grade. Our auction rate securities are covered by government guarantees or municipal bond insurance and we have the ability and intent to hold these securities until maturity or market stability is restored. Accordingly, we do not believe our auction rate securities are impaired and have not recorded any other-than-temporary impairment as of December 31, 2013. | ||||||||||||||||||||
There were no redemptions or sales of our auction rate securities during the year ended December 31, 2013, however, during the years ended December 31, 2012, and 2011, respectively, we redeemed $0.8 million and $11.2 million auction rate securities at par. We did not realize any losses associated with selling or redeeming our auction rate securities for those years. | ||||||||||||||||||||
During the years ended December 31, 2013, 2012, and 2011, respectively, we sold or redeemed fixed maturity bond investments totaling $360.2 million, $378.1 million, $200.5 million, respectively. Realized gains and losses on sales and redemptions of investments, including sales and redemptions of the fixed maturity bond investments, were not material for the years ended December 31, 2013, 2012 or 2011. Additionally, we did not realize any OTTI for the years ended December 31, 2013, 2012 or 2011. |
RESTRICTED_INVESTMENTS
RESTRICTED INVESTMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restricted Investments Note [Abstract] | ' | |||||||||||||||
RESTRICTED INVESTMENTS | ' | |||||||||||||||
RESTRICTED INVESTMENTS | ||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of our restricted cash and investment securities are as follows: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
December 31, 2013 | ||||||||||||||||
Money market funds | $ | 19 | $ | — | $ | — | $ | 19 | ||||||||
Cash | 40.2 | — | — | 40.2 | ||||||||||||
Certificates of deposit | 1.4 | — | — | 1.4 | ||||||||||||
U.S. government securities | 22 | — | (0.1 | ) | 21.9 | |||||||||||
Total | $ | 82.6 | $ | — | $ | (0.1 | ) | $ | 82.5 | |||||||
December 31, 2012 | ||||||||||||||||
Money market funds | $ | 18.6 | $ | — | $ | — | $ | 18.6 | ||||||||
Cash | 29.2 | — | — | 29.2 | ||||||||||||
Certificates of deposit | 1.6 | — | — | 1.6 | ||||||||||||
U.S. government securities | 18 | — | — | 18 | ||||||||||||
Total | $ | 67.4 | $ | — | $ | — | $ | 67.4 | ||||||||
Realized gains or losses related to sales and redemptions of restricted investments were immaterial for the years ended December 31, 2013, 2012, or 2011. |
PROPERTY_EQUIPMENT_AND_CAPITAL
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE | ' | |||||||
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE | ||||||||
Property, equipment and capitalized software and related accumulated depreciation is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Leasehold improvements | $ | 22.2 | $ | 20.6 | ||||
Computer equipment | 62.9 | 52.9 | ||||||
Capitalized software | 185.4 | 147.6 | ||||||
Furniture and equipment | 22.4 | 19.2 | ||||||
292.9 | 240.3 | |||||||
Less accumulated depreciation | (145.5 | ) | (108.8 | ) | ||||
Total property and equipment, net | $ | 147.4 | $ | 131.5 | ||||
We recognized depreciation expense on property, equipment and capitalized software of $36.7 million, $29.2 million, and $24.9 million for the years ended December 31, 2013, 2012, and 2011, respectively, including amortization expense on capitalized software of $22.0 million, $15.4 million and $11.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | ' | |||||||||||||||||||||||||
OTHER INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||||
A summary of changes in our goodwill by reportable business segment is as follows for 2013 and 2012: | ||||||||||||||||||||||||||
Medicaid | MA | Total | ||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 111.1 | $ | — | $ | 111.1 | ||||||||||||||||||||
Acquisitions | — | 112.7 | 112.7 | |||||||||||||||||||||||
Balance as of December 31, 2012(1) | 111.1 | 112.7 | 223.8 | |||||||||||||||||||||||
Acquisitions and acquisition related adjustments | 15.7 | (2.7 | ) | 13 | ||||||||||||||||||||||
Balance as of December 31, 2013 (1) | $ | 126.8 | $ | 110 | $ | 236.8 | ||||||||||||||||||||
(1) Cumulative impairment charges relating to goodwill were $78.3 million as of December 31, 2013 and 2012, which related to goodwill assigned to our Medicare reporting unit which we fully impaired during 2008. | ||||||||||||||||||||||||||
Other intangible assets as of December 31, 2013 and 2012, and the related weighted-average amortization periods as of December 31, 2013, are as follows: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Weighted Average Amortization Period (In Years) | Gross Carrying Amount | Accumulated Amortization | Other Intangibles, Net | Gross Carrying Amount | Accumulated Amortization | Other Intangibles, Net | ||||||||||||||||||||
Provider networks | 15.4 | $ | 6.1 | $ | (2.5 | ) | $ | 3.6 | $ | 4 | $ | (2.1 | ) | $ | 1.9 | |||||||||||
Trademarks | 13.4 | 13.3 | (8.1 | ) | 5.2 | 12.1 | (6.9 | ) | 5.2 | |||||||||||||||||
Licenses and permits | 15 | 5.3 | (2.9 | ) | 2.4 | 5.3 | (2.5 | ) | 2.8 | |||||||||||||||||
State contracts | 13.7 | 56.6 | (6.4 | ) | 50.2 | 43.5 | (2.3 | ) | 41.2 | |||||||||||||||||
Other | 6.5 | 6.4 | (1.3 | ) | 5.1 | 1.9 | — | 1.9 | ||||||||||||||||||
Total other intangible assets | 13.3 | $ | 87.7 | $ | (21.2 | ) | $ | 66.5 | $ | 66.8 | $ | (13.8 | ) | $ | 53 | |||||||||||
We recorded amortization expense of $7.4 million, $2.3 million, and $1.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. The increase in amortization expense for 2013 resulted from the 2013 acquisitions of WCSC and Missouri Care, and the 2012 acquisitions of Easy Choice and Desert Canyon. Amortization expense expected to be recognized during fiscal years subsequent to December 31, 2013 is as follows: | ||||||||||||||||||||||||||
Expected Amortization Expense | ||||||||||||||||||||||||||
2014 | $ | 7.3 | ||||||||||||||||||||||||
2015 | 7.2 | |||||||||||||||||||||||||
2016 | 7.1 | |||||||||||||||||||||||||
2017 | 6.3 | |||||||||||||||||||||||||
2018 | 5.3 | |||||||||||||||||||||||||
2019 and thereafter | 33.3 | |||||||||||||||||||||||||
Total | $ | 66.5 | ||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Our consolidated balance sheets include the following financial instruments: cash and cash equivalents, investments, receivables, accounts payable, medical benefits payable, long-term debt, and other liabilities. We consider the carrying amounts of cash and cash equivalents, receivables, other current assets and current liabilities to approximate their fair value due to the short period of time between the origination of these instruments and the expected realization or payment. | ||||||||||||||||
For other financial instruments, including short- and long-term investments, restricted investments, amounts accrued related to investigation resolution, and long-term debt, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. | ||||||||||||||||
Level 1—Quoted (unadjusted) prices for identical assets or liabilities in active markets: We include investments in commercial paper, money market funds, cash, U.S. government securities and the variable rate bond fund, as well as certain certificates of deposit and corporate debt, asset-backed and other municipal securities in Level 1. The carrying amounts of money market funds and cash approximate fair value because of the short-term nature of these instruments. We base fair values of the other investments included in Level 1 on unadjusted quoted market prices for identical securities in active markets. | ||||||||||||||||
Level 2—Inputs other than quoted prices in active markets: We include in Level 2 investments in certain certificates of deposit, corporate debt, asset-backed and other municipal securities for which fair market valuations are based on quoted prices for identical securities in markets that are not active, quoted prices for similar securities in active markets, broker or dealer quotations, or alternative pricing sources or for which all significant inputs are observable, either directly or indirectly, including interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates. | ||||||||||||||||
In addition to using market data, we make assumptions when valuing our assets and liabilities, including assumptions about risks inherent in the inputs to the valuation technique. When there is not an observable market price for an identical or similar asset or liability, we use an income approach reflecting our best assumptions regarding expected cash flows, discounted using a commensurate risk-adjusted discount rate. We estimated the fair value of the future payments related to investigation resolution using a discounted cash flow analysis and recorded these amounts at fair value in the short- and long-term portions of amounts accrued related to investigation resolution line items in our consolidated balance sheets. | ||||||||||||||||
Level 3—Unobservable inputs that cannot be corroborated by observable market data: We hold investments in auction rate securities, designated as available for sale and reported at fair value. At December 31, 2013, the auction rate securities had par values of $34.2 million. Liquidity for these auction rate securities is typically provided by an auction process which allows holders to sell their notes and resets the applicable interest rate at pre-determined intervals, usually every seven or 35 days. Auctions for these auction rate securities continued to fail during the twelve months ended December 31, 2013. An auction failure means that the parties wishing to sell their securities could not be matched with an adequate volume of buyers. As a result, our ability to liquidate and fully recover the carrying value of our remaining auction rate securities in the near term may be limited or non-existent. However, when there is a failed auction, the indenture governing the security requires the issuer to pay interest at a contractually defined rate that is generally above market rates for other types of similar instruments. We continue to receive interest payments on the auction rate securities we hold. Based on our analysis of anticipated cash flows, we have determined that it is more likely than not that we will be able to hold these securities until maturity or until market stability is restored. Additionally, there are government guarantees or municipal bond insurance in place and we have the ability and the present intent to hold these securities until maturity or market stability is restored. Based on this, we do not believe our auction rate securities are impaired and as a result, we have not recorded any impairment losses for our auction rate securities. However, as these securities are believed to be in an inactive market, we have estimated the fair value of these securities using a discounted cash flow model and update these estimates on a quarterly basis. Our analysis considered, among other things, the collateralization underlying the securities, the creditworthiness of the counterparty, the timing of expected future cash flows and the capital adequacy and expected cash flows of the subsidiaries that hold the securities. The estimated values of these securities were also compared, when possible, to valuation data with respect to similar securities held by other parties. Significant unobservable inputs used in the discounted cash flow model include the historical municipal bond index return rate and individual security credit ratings. Increases or decreases in the municipal bond index return rate or changes in security credit ratings could result in a significant change in the fair value estimation of our auction rate securities. Unobservable inputs included in our estimation of fair value of auction rate securities at December 31, 2013 included security credit ratings ranging from AAA/Aaa to BB-/Ba3 and historical municipal bond index returns ranging from 0% to 8.5%. The fair values of auction rate securities are based on an approach that relies heavily on management assumptions and qualitative observations and therefore fall within Level 3 of the fair value hierarchy. | ||||||||||||||||
We determine transfers between levels at the end of the reporting period. No transfers between levels were recognized for the years ended December 31, 2013 and 2012. | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
Assets and liabilities measured at fair value on a recurrring basis at December 31, 2013 are as follows: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Carrying Value | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
for Identical | Inputs | Inputs | ||||||||||||||
Assets | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Investments: | ||||||||||||||||
Asset backed securities | $ | 1.6 | $ | — | $ | 1.6 | $ | — | ||||||||
Auction rate securities | 31.8 | — | — | 31.8 | ||||||||||||
Certificates of deposit | 1.6 | — | 1.6 | — | ||||||||||||
Corporate debt securities | 102.9 | — | 102.9 | — | ||||||||||||
Money market funds | 43.4 | 43.4 | — | — | ||||||||||||
Municipal securities | 108.9 | — | 108.9 | — | ||||||||||||
U.S. government securities | 19.6 | 19.6 | — | — | ||||||||||||
Variable rate bond fund | 85.3 | 85.3 | — | — | ||||||||||||
Total investments | $ | 395.1 | $ | 148.3 | $ | 215 | $ | 31.8 | ||||||||
Restricted investments: | ||||||||||||||||
Money market funds | $ | 19 | $ | 19 | $ | — | $ | — | ||||||||
Cash | 40.2 | 40.2 | — | — | ||||||||||||
Certificates of deposit | 1.4 | — | 1.4 | — | ||||||||||||
U.S. government securities | 21.9 | 21.9 | — | — | ||||||||||||
Total restricted investments | $ | 82.5 | $ | 81.1 | $ | 1.4 | $ | — | ||||||||
Amounts payable related to investigation resolution | $ | 70.3 | $ | — | $ | 70.3 | $ | — | ||||||||
Assets and liabilities measured at fair value on a recurring basis at December 31, 2012 are as follows: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Investments: | ||||||||||||||||
Asset backed securities | $ | 4.5 | $ | — | $ | 4.5 | $ | — | ||||||||
Auction rate securities | 32 | — | — | 32 | ||||||||||||
Corporate debt securities | 57.7 | — | 57.7 | — | ||||||||||||
Money market funds | 9.5 | 9.5 | — | — | ||||||||||||
Municipal securities | 118.8 | — | 118.8 | — | ||||||||||||
U.S. government securities | 18.8 | 18.8 | — | — | ||||||||||||
Variable rate bond fund | 75.7 | 75.7 | — | — | ||||||||||||
Total investments | $ | 317 | $ | 104 | $ | 176.5 | $ | 32 | ||||||||
Restricted investments: | ||||||||||||||||
Money market funds | $ | 18.6 | $ | 18.6 | $ | — | $ | — | ||||||||
Cash | 29.2 | 29.2 | — | — | ||||||||||||
Certificates of deposit | 1.6 | — | 1.6 | — | ||||||||||||
U.S. government securities | 18 | 18 | — | — | ||||||||||||
Total restricted investments | $ | 67.4 | $ | 65.8 | $ | 1.6 | $ | — | ||||||||
Amounts payable related to investigation resolution | $ | 105.5 | $ | — | $ | 105.5 | $ | — | ||||||||
The following table presents the changes in the fair value of our Level 3 auction rate securities for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||||||||||
Balance as of January 1 | $ | 32 | $ | 32.4 | $ | 42.2 | ||||||||||
Realized gains (losses) in earnings | — | — | — | |||||||||||||
Changes in net unrealized gains and losses in other comprehensive income | (0.2 | ) | 0.4 | 1.4 | ||||||||||||
Purchases, sales and redemptions | — | (0.8 | ) | (11.2 | ) | |||||||||||
Net transfers in or (out) of Level 3 | — | — | — | |||||||||||||
Balance as of December 31 | $ | 31.8 | $ | 32 | $ | 32.4 | ||||||||||
As a result of the increase (or decrease) in the fair value of our investments in auction rate securities, we recorded net unrealized (losses) gains of $(0.2) million, $0.4 million, and $1.4 million to accumulated other comprehensive loss during the years ended December 31, 2013, 2012 and 2011, respectively. There were no redemptions or sales of our auction rate securities during the year ended December 31, 2013, however, during the years ended December 31, 2012, and 2011, respectively, we redeemed $0.8 million and $11.2 million auction rate securities at par. We did not realize any losses associated with selling or redeeming our auction rate securities for those years. | ||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||
Non-financial assets and liabilities or financial assets and liabilities that are measured at fair value on a nonrecurring basis are subject to fair value adjustments only in certain circumstances, such as when we record an impairment. During the year ended December 31, 2013, we determined that we would be discontinuing certain projects going forward and, as a result, the software and development costs acquired to support these projects would not be fully recoverable. In accordance with the guidance for the impairment of long-lived assets, we evaluated these assets for recovery and recorded a pre-tax asset impairment charge of $9.0 million to reduce the carrying value to $0. The fair value assessment for such assets was based on an approach that relied heavily on management assumptions and qualitative observations and, therefore, would be classified within Level 3 of the fair value hierarchy. | ||||||||||||||||
Debt | ||||||||||||||||
The carrying and fair values of our senior notes at December 31, 2013 was $600.0 million and $615.0 million, respectively, while the carrying and fair values of our term loan, which was paid off during 2013, was $135.0 million and $131.8 million, respectively, at December 31, 2012. The fair value of our senior notes was determined based on quoted market prices at December 31, 2013, and therefore would be classified within Level 1 of the fair value hierarchy, while the fair value of our term loan was determined based on a discounted cash flow analysis, and would therefore be classified within Level 2 of the fair value hierarchy. |
MEDICAL_BENEFITS_PAYABLE
MEDICAL BENEFITS PAYABLE | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
MEDICAL BENEFITS PAYABLE [Abstract] | ' | |||||||||||
MEDICAL BENEFITS PAYABLE | ' | |||||||||||
MEDICAL BENEFITS PAYABLE | ||||||||||||
Medical benefits payable consists of: | ||||||||||||
As of December 31, 2013 | % of Total | As of December 31, 2012 | % of Total | |||||||||
IBNR | $ | 690.1 | 72% | $ | 547.4 | 75% | ||||||
Other medical benefits payable | 263.3 | 28% | 185.6 | 25% | ||||||||
Total medical benefits payable | $ | 953.4 | 100% | $ | 733 | 100% | ||||||
A reconciliation of the beginning and ending balances of medical benefits payable is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 733 | $ | 744.8 | $ | 743 | ||||||
Acquisitions | 71.6 | — | — | |||||||||
Medical benefits incurred related to: | ||||||||||||
Current period | 8,333.20 | 6,450.50 | 5,200.10 | |||||||||
Prior period | (74.6 | ) | (146.6 | ) | (252.1 | ) | ||||||
Total | 8,258.60 | 6,303.90 | 4,948.00 | |||||||||
Medical benefits paid related to: | ||||||||||||
Current period | (7,490.6 | ) | (5,754.9 | ) | (4,533.9 | ) | ||||||
Prior periods | (619.2 | ) | (560.8 | ) | (412.3 | ) | ||||||
Total | (8,109.8 | ) | (6,315.7 | ) | (4,946.2 | ) | ||||||
Ending balance | $ | 953.4 | $ | 733 | $ | 744.8 | ||||||
Our estimates of medical benefits expense recorded at December 31, 2013, 2012 and 2011 developed favorably by approximately $74.6 million, $146.6 million, and $252.1 million in 2013, 2012 and 2011, respectively. The release of the provision for moderately adverse conditions included in our prior period estimates was substantially offset by the provision for moderately adverse conditions established for claims incurred in the current year. Accordingly, the favorable development in our estimate of medical benefits payable related to claims incurred in prior years does not directly correspond to a decrease in medical benefits expense recognized during the period. | ||||||||||||
Excluding the prior period development related to the release of the provision for moderately adverse conditions, our estimates of medical benefits expense recorded at December 31, 2013, 2012 and 2011, developed favorably by approximately $3.0 million, $76.7 million and $191.2 million in 2013, 2012 and 2011, respectively. The net favorable development in 2013 was due mainly to the medical cost trend emerging favorably in our Medicaid segment due to lower utilization. The net favorable development in 2012 was due to the medical cost trend emerging favorably, mostly in our Medicaid segment and to a lesser extent in our MA and PDP segments, primarily due to lower than projected utilization, partially offset by higher than expected medical services in Kentucky. The net favorable development during 2011 was attributable to the 2010 medical cost trend emerging favorably than we originally estimated, mostly in our Medicaid segment and to a lesser extent in our MA segment, primarily due to lower than projected utilization. |
DEBT
DEBT | 12 Months Ended | ||
Dec. 31, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
DEBT | ' | ||
DEBT | |||
Senior Notes due 2020 | |||
In November 2013, we completed the offering and sale of $600.0 million aggregate principal amount of 5.75% unsecured senior notes due 2020 (the “Senior Notes”). The aggregate net proceeds from the issuance of the Senior Notes were $587.9 million, with a portion of the net proceeds from the offering being used to repay the full $336.5 million outstanding under the 2011 Credit Agreement, and the remaining net proceeds are being used for general corporate purposes, including organic growth opportunities and potential acquisitions. The Senior Notes will mature on November 15, 2020, and will bear interest at a rate of 5.75% per annum. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. Interest on the Senior Notes will be payable semi-annually on May 15 and November 15 of each year, commencing on May 15, 2014. | |||
The Senior Notes were issued under an indenture, dated as of November 14, 2013 (the “Base Indenture”), as supplemented by the First Supplemental Indenture, dated as of November 14, 2013 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) each between us and The Bank of New York Mellon Trust Company, N.A., as trustee. The indenture under which the notes were issued contain covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to: | |||
• | incur additional indebtedness and issue preferred stock; | ||
• | pay dividends or make other distributions; | ||
• | make other restricted payments and investments; | ||
• | sell assets, including capital stock of restricted subsidiaries; | ||
• | create certain liens; | ||
• | incur restrictions on the ability of restricted subsidiaries to pay dividends or make other payments, and in the case of the our subsidiaries, guarantee indebtedness; | ||
• | engage in transactions with affiliates; | ||
• | create unrestricted subsidiaries; and | ||
• | merge or consolidate with other entities. | ||
Ranking and Optional Redemption | |||
The Senior Notes are senior obligations of our company and rank equally in right of payment with all of our other existing and future unsecured and unsubordinated indebtedness. In addition, the Senior Notes will be structurally subordinated to all indebtedness and other liabilities of the our subsidiaries (unless our subsidiaries become guarantors of the Senior Notes). We may redeem up to 40% of the aggregate principal amount of the Senior Notes at any time prior to November 15, 2016, at a redemption price equal to 105.75% of the principal amount of the Senior Notes redeemed, plus accrued and unpaid interest. | |||
On or after November 15, 2016, we may on any one or more occasions redeem all or part of the Senior Notes, at the redemption prices (expressed as percentages of principal amount) set forth below, if redeemed during the twelve-month period beginning on November 15 of the years indicated below, subject to the rights of holders of Senior Notes on the relevant record date to receive interest due on the relevant interest payment date: | |||
Period | Redemption Price | ||
2016 | 102.875 | % | |
2017 | 101.438 | % | |
2018 and thereafter | 100 | % | |
In connection with the issuance of the Senior Notes, we incurred and deferred approximately $12.1 million of debt issuance costs, which is included in Prepaid expenses and other current assets, net, and Other assets at December 31, 2013. The deferred issuance costs will be amortized to interest expense over the life of the Senior Notes. The Senior Notes are classified as long-term debt in the Company’s Consolidated Balance Sheet at December 31, 2013 based on their November 2020 maturity date. | |||
Credit Arrangements | |||
In November 2013, we entered into a credit agreement (the "Credit Agreement") which provides for a senior unsecured revolving loan facility (the “Revolving Credit Facility”) of up to $300.0 million, which may be used for general corporate purposes of the Company and its subsidiaries. The Revolving Credit Facility provides for up to $75.0 million for letters of credit. The Credit Agreement also provides that we may, at our option, increase the aggregate amount of the Revolving Credit Facility and/or obtain incremental term loans in an amount up to $75.0 million without the consent of any lenders not participating in such increase, subject to certain customary conditions and lenders committing to provide the increase in funding. The commitments under the Revolving Credit Facility expire on November 14, 2018 and any amounts outstanding under the facility will be payable in full at that time. Unutilized commitments under the Credit Agreement are subject to a fee of 0.25% to 0.375% depending upon our ratio of total debt to cash flow. | |||
The Credit Agreement includes negative and financial covenants that limit certain activities of our company and its subsidiaries, including (i) restrictions on our ability to incur additional indebtedness; and (ii) financial covenants that require (a) the ratio of total debt to cash flow not to exceed a maximum; (b) a minimum interest expense and principal payment coverage ratio; and (c) a minimum level of statutory net worth for our health maintenance organization and insurance subsidiaries. The Credit Agreement also contains customary representations and warranties that must be accurate in order for us to borrow under the Revolving Credit Facility. In addition, the Credit Agreement contains customary events of default. If an event of default occurs and is continuing, we may be required immediately to repay all amounts outstanding under the Credit Agreement. Lenders holding at least 50% of the loans and commitments under the Credit Agreement may elect to accelerate the maturity of the loans and/or terminate the commitments under the Credit Agreement upon the occurrence and during the continuation of an event of default. | |||
As of December 31, 2013, we have not drawn upon the Revolving Credit Facility and we remain in compliance with all covenants. | |||
Additionally, in November 2013, we terminated our senior secured credit facility dated August 1, 2011, as amended to date, (the "2011 Credit Agreement") in connection with our entry into the Credit Agreement described above. All amounts outstanding under the 2011 Credit Agreement as of November 14, 2013, which amounted to $336.5 million, were paid in full upon termination of the agreement. In conjunction with the extinguishment of debt, we incurred approximately $2.8 million for the accelerated recognition of previously deferred financing costs. | |||
Subordinated Notes | |||
On September 30, 2011, we issued tradable unsecured subordinated notes with an aggregate par value of $112.5 million in connection with a Stipulation and Agreement of Settlement (the "Stipulation Agreement") with the lead plaintiffs in the consolidated securities class action Eastwood Enterprises, L.L.C. v. Farha, et al., Case No. 8:07-cv-1940-VMC-EAJ. The stipulation and settlement agreement was approved on May 4, 2011 and resolved the putative class action complaints filed against us in 2007. On December 15, 2011, we repurchased all of the outstanding subordinated notes at a 10% discount and recorded a gain on the repurchase of $10.8 million. We recorded interest on the subordinated notes of approximately $4.3 million during the year ended December 31, 2011. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTINGENCIES | ||||
Government Investigations | ||||
Under the terms of settlement agreements entered into on April 26, 2011, and finalized on March 23, 2012, to resolve matters under investigation by the Civil Division of the U.S. Department of Justice ("Civil Division") and certain other federal and state enforcement agencies (the "Settlement"), we agreed to pay the Civil Division a total of $137.5 million in four annual installments of $34.4 million over 36 months plus interest accrued at 3.125%. The estimated fair value of the discounted remaining liability, and related interest, was $70.3 million at December 31, 2013, of which $36.2 million and $34.1 million has been included in the current and long-term portions, respectively, of amounts payable related to the investigation resolution in the accompanying consolidated balance sheet as of December 31, 2013. | ||||
The Settlement also provides for a contingent payment of an additional $35.0 million in the event that we are acquired or otherwise experience a change in control on or before April 30, 2015, provided that the change in control transaction exceeds certain minimum transaction value thresholds as specified in the Settlement. | ||||
Securities Class Action Complaint | ||||
In December 2010, we entered into a Stipulation and Agreement of Settlement (the "Stipulation Agreement") with the lead plaintiffs in the consolidated securities class action Eastwood Enterprises, L.L.C. v. Farha, et al., Case No. 8:07-cv-1940-VMC-EAJ. The Stipulation Agreement requires us to pay to the class 25% of any sums we recover from Todd Farha, Paul Behrens and/or Thaddeus Bereday related to the same facts and circumstances that gave rise to the consolidated securities class action. Messrs. Farha, Behrens and Bereday are three former executives that were implicated in the government investigations of the Company that commenced in 2007. | ||||
Corporate Integrity Agreement | ||||
We operate under a Corporate Integrity Agreement (the "Corporate Integrity Agreement") with the Office of Inspector General of the United States Department of Health and Human Services ("OIG-HHS"). The Corporate Integrity Agreement has a term of five years from its effective date of April 26, 2011 and mandates various ethics and compliance programs designed to help ensure our ongoing compliance with federal health care program requirements. The terms of the Corporate Integrity Agreement include certain organizational structure requirements, internal monitoring requirements, compliance training, screening processes for employees, reporting requirements to OIG-HHS, and the engagement of an independent review organization to review and prepare written reports regarding, among other things, WellCare's reporting practices and bid submissions to federal health care programs. | ||||
Indemnification Obligations | ||||
Under Delaware law, our charter and bylaws and certain indemnification agreements to which we are a party, we are obligated to indemnify, or we have otherwise agreed to indemnify, certain of our current and former directors, officers and associates with respect to current and future investigations and litigation, including the matters discussed in this footnote. The indemnification agreements for our directors and executive officers with respect to events occurring prior to May 2009 require us to indemnify an indemnitee to the fullest extent permitted by law if the indemnitee was or is or becomes a party to or witness or other participant in any proceeding by reason of any event or occurrence related to the indemnitee's status as a director, officer, employee agent or fiduciary of the Company or any of our subsidiaries and all expenses, including attorney's fees, judgments, fines, settlement amounts and interest and other charges, and any taxes as a result of the receipt of payments under the indemnification agreement. We will not indemnify the indemnitee if not permitted under applicable law. We are required to advance all expenses incurred by the indemnitee. We are entitled to reimbursement by an indemnitee of expenses advanced if the indemnitee is not permitted to be reimbursed under applicable law after a final judicial determination is made and all rights of appeal have been exhausted or lapsed. | ||||
We amended and restated our indemnification agreements in May 2009. The revised agreements apply to our officers and directors with respect to events occurring after that time. Pursuant to the 2009 indemnification agreements, we will indemnify the indemnitee against all expenses, including attorney's fees, judgments, penalties, fines, settlement amounts and any taxes imposed as a result of payments made under the indemnification agreement incurred in connection with any proceedings that relate to the indemnitee's status as a director, officer or employee of the Company or any of our subsidiaries or any other enterprise that the indemnitee was serving at our request. We will also indemnify for expenses incurred by the indemnitee if an indemnitee, by reason of his or her corporate status, is a witness in any proceeding. Further, we are required to indemnify for expenses incurred by an indemnitee in defense of a proceeding to the extent the indemnitee has been successful on the merits or otherwise. Finally, if the indemnitee is involved in certain proceedings as a result of the indemnitee's corporate status, we are required to advance the indemnitee's reasonable expenses incurred in connection with such proceeding, subject to the requirement that the indemnitee repay the expenses if it is ultimately determined that the indemnitee is not entitled to be indemnified.We are not obligated to indemnify an indemnitee for losses incurred in connection with any proceeding if a determination has not been made by the Board of Directors, a committee of disinterested directors or independent legal counsel in the specific case that the indemnitee has satisfied any standards of conduct required as a condition to indemnification under Section 145 of the Delaware General Corporation Law. | ||||
Pursuant to our obligations, we have advanced, and will continue to advance, legal fees and related expenses to three former officers and two additional associates who were criminally indicted in connection with the government investigations of the Company that commenced in 2007 related to federal criminal health care fraud charges including conspiracy to defraud the United States, false statements relating to health care matters, and health care fraud in connection with their defense of criminal charges. In June 2013, the jury in the criminal trial reached guilty verdicts on multiple charges for the four individuals that were tried in 2013. Sentencing is expected later this year. At this time, we do not know whether any of these four individuals will appeal. The fifth individual is expected to be tried at a future date. | ||||
We have also previously advanced legal fees and related expenses to these five individuals regarding disputes in Delaware Chancery Court related to whether we were legally obligated to advance fees or indemnify certain of these executives; the class actions titled Eastwood Enterprises, L.L.C. v. Farha, et al. and Hutton v. WellCare Health Plans, Inc. et al. filed in federal court; six stockholder derivative actions filed in federal and state courts between October 2007 and January 2008; an investigation by the United States Securities & Exchange Commission (the "Commission"); and an action by the Commission filed in January 2012 against Messrs. Farha, Behrens and Bereday. The Delaware Chancery Court cases have concluded. We settled the class actions in May 2011. In 2010, we settled the stockholder derivative actions and we were realigned as the plaintiff to pursue our claims against Messrs. Farha, Behrens and Bereday. These actions, as well as the action by the Commission, have been stayed until at least 90 days after the conclusion of the criminal trial (including post-trial motions and proceedings). | ||||
In connection with these matters, we have advanced to the five individuals, cumulative legal fees and related expenses of approximately $155.9 million from the inception of the investigations to December 31, 2013. We incurred $46.0 million, $38.2 million and $24.0 million of these legal fees and related expenses during the years ended December 31, 2013, 2012 and 2011, respectively. We expense these costs as incurred and classify the costs as selling, general and administrative expense incurred in connection with the investigations and related matters. | ||||
In August 2010, we entered into an agreement and release with the carriers of our directors and officers ("D&O") liability insurance relating to coverage we sought for claims relating to the previously disclosed government investigations and related litigation. We agreed to accept payment of $32.5 million in satisfaction of the $45.0 million face amount of the relevant D&O insurance policies and the carriers agreed to waive any rights they may have to challenge our coverage under the policies. As a result, we have exhausted our insurance policies related to reimbursement of our advancement of fees related to these matters. We received payment of $6.7 million prior to 2011 and recorded the receipt of the remaining $25.8 million of insurance proceeds as a reduction to selling, general and administrative expense during the year ended December 31, 2011. | ||||
We expect the continuing cost of our obligations to the five individuals in connection with their defense and appeal of criminal charges and related litigation to be significant and to continue for a number of years. We are unable to estimate the total amount of these costs or a range of possible loss. Accordingly, we continue to expense these costs as incurred. Even if it is eventually determined that we are entitled to reimbursement of the advanced expenses, it is possible that we may not be able to recover all or any portion of our advances. Our indemnification obligations and requirements to advance legal fees and expenses may have a material adverse effect on our financial condition, results of operations and cash flows. | ||||
Other Lawsuits and Claims | ||||
Based on the nature of our business, we are subject to regulatory reviews or other investigations by various state insurance and health care regulatory authorities and other state and federal regulatory authorities. These authorities regularly scrutinize the business practices of health insurance and benefits companies and their reviews focus on numerous facets of our business, including claims payment practices, provider contracting, competitive practices, commission payments, privacy issues and utilization management practices, among others. Some of these reviews have historically resulted in fines imposed on us and some have required changes to our business practices. We continue to be subject to such reviews, which may result in additional fines and/or sanctions being imposed or additional changes in our business practices. | ||||
Separate and apart from the legal matters described above, we are also involved in other legal actions in the normal course of our business, including, without limitation, provider disputes regarding payment of claims. Some of these actions seek monetary damages, including claims for liquidated or punitive damages, which are not covered by insurance. We review relevant information with respect to litigation matters and we update our estimates of reasonably possible losses and related disclosures. We accrue an estimate for contingent liabilities, including attorney's fees related to these matters, if a loss is probable and estimable. Currently, we do not expect that the resolution of any currently pending actions, either individually or in the aggregate, will differ materially from our current estimates or have a material adverse effect on our results of operations, financial position, and cash flows. However, the outcome of any legal actions cannot be predicted, and therefore, actual results may differ from those estimates. | ||||
Operating Leases | ||||
We recorded rental expense of $20.4 million, $17.0 million, and $18.0 million for the years ended December 31, 2013, 2012 and 2011, respectively, related to our operating leases for office space. Future minimum lease payments under non-cancelable operating leases with initial or remaining lease terms in excess of one year at December 31, 2013 are as follows: | ||||
Minimum Lease Payments | ||||
2014 | $ | 20 | ||
2015 | 16.4 | |||
2016 | 11.2 | |||
2017 | 9.1 | |||
2018 | 4.4 | |||
2019 and thereafter | 6.8 | |||
Total | $ | 67.9 | ||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
The Company and subsidiaries file a consolidated federal income tax return and separate state franchise, income and premium tax returns, as applicable. The following table provides components of income tax expense (benefit): | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 78.6 | $ | 84 | $ | 59.6 | ||||||
State | 7.5 | 8.6 | (1.2 | ) | ||||||||
86.1 | 92.6 | 58.4 | ||||||||||
Deferred: | ||||||||||||
Federal | 16 | 18.1 | 87 | |||||||||
State | 0.9 | 1 | 8.8 | |||||||||
16.9 | 19.1 | 95.8 | ||||||||||
Total income tax expense | $ | 103 | $ | 111.7 | $ | 154.2 | ||||||
A reconciliation of income tax at the statutory federal rate of 35% to income tax at the effective rate is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax expense at statutory federal rate | $ | 97.4 | $ | 103.7 | $ | 146.5 | ||||||
Adjustments resulting from: | ||||||||||||
State income tax, net of federal benefit | 5.8 | 6.7 | 8.1 | |||||||||
Provision-to-return differences | — | — | (2.3 | ) | ||||||||
Non-deductible executive compensation | 5.1 | 2.4 | 1.6 | |||||||||
Non-deductible amounts related to investigation resolution | (6.9 | ) | (1.3 | ) | 0.2 | |||||||
Interest on unrecognized tax benefits | — | (0.1 | ) | (0.3 | ) | |||||||
Other, net | 1.6 | 0.3 | 0.4 | |||||||||
Total income tax expense | $ | 103 | $ | 111.7 | $ | 154.2 | ||||||
Our effective income tax rate on pre-tax income was 37.0% for the year ended December 31, 2013, compared to 37.7% for the year ended December 31, 2012 and 36.9% for the year ended December 31, 2011. The lower effective income tax rate in 2013 compared to 2012 is primarily due to an issue resolution agreement reached with the Internal Revenue Service during 2013 regarding the tax treatment of certain investigation-related litigation and other resolution cost, which resulted in the recognition of approximately $7.6 million in income tax benefits during the first quarter of 2013, partially offset by the impact of non-deductible compensation under certain provisions of the Affordable Care Act, which generally limits deductions on executive compensation earned after December 31, 2009 that is paid after December 31, 2012. | ||||||||||||
Significant components of our deferred tax assets and liabilities are: | ||||||||||||
As of December 31, | ||||||||||||
Deferred tax assets: | 2013 | 2012 | ||||||||||
Medical and other benefits discounting | $ | 11.7 | $ | 12.3 | ||||||||
Tax basis assets | 10.1 | 8.4 | ||||||||||
Allowance for doubtful accounts | 3.6 | 5.7 | ||||||||||
Amount payable related to investigation resolution | 13.7 | 13.1 | ||||||||||
Accrued expenses and other | 19 | 27.8 | ||||||||||
58.1 | 67.3 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Goodwill, other intangible assets and property and equipment | 26 | 28.7 | ||||||||||
Software development costs | 54.9 | 43 | ||||||||||
Prepaid assets | 8.9 | 10.5 | ||||||||||
89.8 | 82.2 | |||||||||||
Net deferred tax liability | $ | (31.7 | ) | $ | (14.9 | ) | ||||||
We have not recorded a valuation allowance at December 31, 2013 and 2012 as we expect that we will fully realize our deferred tax assets. | ||||||||||||
We classify deferred tax assets and liabilities in the consolidated balance sheets as follows: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 23.7 | $ | 27.2 | ||||||||
Non-current liabilities | (55.4 | ) | (42.1 | ) | ||||||||
Net deferred tax liability | $ | (31.7 | ) | $ | (14.9 | ) | ||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Gross unrecognized tax benefits, beginning of period | $ | — | $ | 3.5 | ||||||||
Gross increases: | ||||||||||||
Prior year tax positions | — | — | ||||||||||
Current year tax positions | — | — | ||||||||||
Gross decreases: | ||||||||||||
Prior year settlements | — | — | ||||||||||
Prior year tax positions | — | (3.5 | ) | |||||||||
Statute of limitations lapses | — | — | ||||||||||
Gross unrecognized tax benefits, end of period | $ | — | $ | — | ||||||||
We believe it is reasonably possible that our liability for unrecognized tax benefits will not significantly increase or decrease in the next twelve months as a result of audit settlements and the expiration of statutes of limitations in certain major jurisdictions. | ||||||||||||
We classify interest and penalties associated with uncertain income tax positions as income taxes within our consolidated financial statements. We did not incur or record accrued penalties for the years ended December 31, 2013 and 2012. As of December 31, 2013 there were no unrecognized tax benefits that would affect the effective tax rate. | ||||||||||||
We file our income tax returns in the U.S. federal jurisdiction and various states. The U.S. IRS recently issued a "no change" report for our federal income tax return for the 2011 tax year after advance review under CAP. We are no longer subject to state and local tax examinations prior to 2004. As of December 31, 2013, we are not aware of any material proposed adjustments. |
EQUITYBASED_COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
EQUITY-BASED COMPENSATION | ' | ||||||||||||
EQUITY-BASED COMPENSATION | |||||||||||||
We recorded equity-based compensation expense of $12.5 million, $14.9 million and $19.5 million for the years ended December 31, 2013, 2012, and 2011, respectively. As of December 31, 2013, we expect $17.1 million of unrecognized compensation cost related to non-vested equity-based compensation arrangements, net of estimated forfeitures, to be recognized over a weighted-average period of 1.6 years. The unrecognized compensation cost for our PSUs, which are subject to variable accounting, was determined based on the closing common stock price of $70.42 as of December 31, 2013 and amounted to approximately $6.6 million of the total unrecognized compensation. Due to the nature of the accounting for these awards, future compensation cost will fluctuate based on changes in our common stock price. | |||||||||||||
The weighted-average grant-date fair values of shares granted during the years ended December 31, 2013 , 2012, and 2011 were $61.33, $64.19, and $41.66, respectively. The total fair value of all shares vested during the year ended December 31, 2013 was $11.6 million.We generally repurchase vested shares to satisfy tax withholding requirements and then retire the repurchased shares. | |||||||||||||
Stock Options | |||||||||||||
A summary of our stock option activity for the year ended December 31, 2013, and the aggregate intrinsic value and weighted average remaining contractual term for our stock options as of December 31, 2013, is: | |||||||||||||
Shares | Weighted | Aggregate | Weighted | ||||||||||
Average | Intrinsic | Average | |||||||||||
Exercise | Value | Remaining | |||||||||||
Price | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Outstanding as of January 1, 2013 | 435,876 | $ | 26.4 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (395,590 | ) | 26.59 | ||||||||||
Forfeited and expired | (8,905 | ) | 5.85 | ||||||||||
Outstanding as of December 31, 2013 (1) | 31,381 | 29.47 | $ | 1.3 | 1.3 | ||||||||
(1) All of the Company's outstanding stock options were vested and exercisable as of December 31, 2013. | |||||||||||||
The Compensation Committee did not grant any stock option awards during the years ended December 31, 2013, 2012 or 2011. The total intrinsic value of options exercised during the years ended December 31, 2013, 2012, and 2011 was $14.1 million, $9.8 million, and $4.4 million, respectively. | |||||||||||||
For the years ended December 31, 2013, 2012, and 2011, we received cash from option exercises of $10.3 million, $9.4 million, and $6.3 million, respectively. We currently expect to satisfy equity-based compensation awards with available unissued registered shares. | |||||||||||||
Restricted Stock and RSUs | |||||||||||||
A summary of the activity for our restricted stock and RSU awards for the year ended December 31, 2013 is: | |||||||||||||
Restricted | Weighted | ||||||||||||
Stock and | Average | ||||||||||||
RSUs | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding as of January 1, 2013 | 273,174 | $ | 45.9 | ||||||||||
Granted | 209,481 | 57.45 | |||||||||||
Vested | (145,756 | ) | 38.71 | ||||||||||
Forfeited and expired | (77,063 | ) | 54.69 | ||||||||||
Outstanding as of December 31, 2013 | 259,836 | 56.51 | |||||||||||
MSUs | |||||||||||||
A summary of the activity for our MSU awards for the year ended December 31, 2013 is: | |||||||||||||
MSUs | Weighted | ||||||||||||
Average | |||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Outstanding as of January 1, 2013 | 62,193 | $ | 74.03 | ||||||||||
Granted | 71,469 | 82.46 | |||||||||||
Vested | — | — | |||||||||||
Forfeited and expired | (49,773 | ) | 77.17 | ||||||||||
Outstanding as of December 31, 2013 | 83,889 | 79.38 | |||||||||||
PSUs | |||||||||||||
A summary of the activity for our PSU awards, which are subject to variable accounting, for the year ended December 31, 2013 is: | |||||||||||||
PSUs | Weighted | ||||||||||||
Average | |||||||||||||
Award-Issuance | |||||||||||||
Fair Value | |||||||||||||
Outstanding as of January 1, 2013 | 421,566 | $ | 46.81 | ||||||||||
Granted | 179,388 | 57.44 | |||||||||||
Vested | (90,347 | ) | 56.8 | ||||||||||
Forfeited and expired | (222,120 | ) | 51.63 | ||||||||||
Outstanding as of December 31, 2013 | 288,487 | 55.3 | |||||||||||
RELATEDPARTY_TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED-PARTY TRANSACTIONS | ' |
RELATED-PARTY TRANSACTIONS | |
The Graham Companies | |
We lease office space from The Graham Companies, in which a member of the board of directors and his immediate family has a 23% ownership interest. We paid $0.2 million in rental expense to The Graham Companies in the year ended December 31, 2013, and $0.1 million in rental expense in both of the years ended December 31, 2012 and 2011. | |
The WellCare Community Foundation | |
We provide charitable support to The WellCare Community Foundation ("the Foundation"). We established the Foundation to promote the health and quality of life for medically under-served populations including the elderly, young and indigent. We did not make or commit to make any contributions to the Foundation during 2013 or 2012. During the year ended December 31, 2011, we recorded total contribution expense of $1.0 million, which is included in selling, general and administrative expense. |
REGULATORY_CAPITAL_AND_DIVIDEN
REGULATORY CAPITAL AND DIVIDEND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2013 | |
REGULATORY CAPITAL AND DIVIDEND RESTRICTIONS [Abstract] | ' |
REGULATORY CAPITAL AND DIVIDEND RESTRICTIONS | ' |
REGULATORY CAPITAL AND DIVIDEND RESTRICTIONS | |
State insurance laws and regulations prescribe accounting practices for determining statutory net income and capital and surplus. Each of our health maintenance organization ("HMO") and insurance subsidiaries must maintain a minimum amount of statutory capital determined by statute or regulation. Minimum statutory capital requirements differ by state and are generally based on a percentage of annualized premium revenue, a percentage of annualized health care costs, a percentage of certain liabilities, a statutory minimum risk-based capital ("RBC") requirement or other financial ratios. Most states have adopted RBC requirements based on guidelines established by the National Association of Insurance Commissioners ("NAIC"). Each state legislature may modify the NAIC's RBC requirements as it deems appropriate. The RBC formula, based on asset risk, underwriting risk, credit risk, business risk and other factors, computes the amount of capital required to support an entity's business, referred to as the authorized control level ("ACL"). For states in which the RBC requirements have been adopted, the regulated entity typically must maintain a minimum of the greater of 200% of the required ACL or the minimum statutory net worth requirement calculated pursuant to pre-RBC guidelines. As of December 31, 2013, our operating HMO and insurance company subsidiaries in all states except California, New York and Florida were subject to RBC requirements. Our subsidiaries operating in Texas and Ohio are required to maintain statutory capital at RBC levels equal to 225% and 300%, respectively, of the applicable ACL. Failure to maintain these requirements would trigger regulatory action by the state. At December 31, 2013, our HMO and insurance subsidiaries were in compliance with these minimum capital requirements. The combined statutory capital and surplus of our HMO and insurance subsidiaries was approximately $1.1 billion and $926.0 million at December 31, 2013 and 2012, respectively, compared to the required statutory surplus of approximately $489.0 million and $383.0 million at December 31, 2013 and 2012, respectively. | |
In addition to the foregoing requirements, our regulated subsidiaries are subject to restrictions, which vary by state, on their ability to make dividend payments, loans and other transfers of cash. The maximum amount of dividends which can be paid without prior approval from the applicable state is subject to restrictions relating to statutory capital, surplus and net income for the previous year. States may disapprove any dividend that, together with other dividends paid by a subsidiary in the prior twelve months, exceeds the regulatory maximum as computed for the subsidiary based on its statutory surplus and net income. For the years ended December 31, 2013, 2012 and 2011, we received $147.0 million, $192.0 million and $92.0 million respectively, in cash dividends from our regulated subsidiaries. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
EMPLOYEE BENEFIT PLANS | |
401(k) Plan | |
We offer a defined contribution 401(k) plan. Eligible employees of the Company and its subsidiaries may elect to participate in this plan. Participants may contribute a certain percentage of their compensation, subject to maximum Federal and plan limits. We incurred matching contribution expense of $6.0 million, $4.3 million and $3.4 million during the years ended December 31, 2013, 2012 and 2011, respectively. | |
Long-term Incentive Program | |
Certain of our senior level employees, including executive officers, are eligible for long-term incentive awards ("LTI Program"), consisting of a mix of cash and equity awards, which are granted pursuant to the 2013 Incentive Compensation Plan during 2013 and the 2004 Equity Incentive Plan during 2012 and certain prior years. We designed the LTI Program to motivate and promote the achievement of our long-term financial and operating goals and improve retention. Under the LTI Program, we grant multi-year performance period awards that are not realized by employees and officers until subsequent years. We base award amounts on each participant's pre-established long-term incentive target and allocate the awards to various types of equity awards and performance-based cash, depending on job level. The Compensation Committee has sole discretion of the ultimate funding and payout of awards under the LTI program. We accrued compensation costs related to the LTI Program performance-based cash bonus of $5.2 million and $9.7 million as of December 31, 2013 and 2012, respectively. |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
QUARTERLY FINANCIAL INFORMATION | ' | |||||||||||||||
QUARTERLY FINANCIAL INFORMATION | ||||||||||||||||
Selected unaudited quarterly financial data is as follows (in millions, except membership and per share data): | ||||||||||||||||
For the Three Month Periods Ended | ||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | |||||||||||||
Total revenues | $ | 2,256.60 | $ | 2,332.10 | $ | 2,500.40 | $ | 2,438.80 | ||||||||
Gross Margin | 265 | 311.5 | 350.9 | 323.1 | ||||||||||||
Income before income taxes | 22.9 | 77.2 | 106.8 | 71.4 | ||||||||||||
Net income | 21.5 | 46.9 | 64 | 42.9 | ||||||||||||
Net income per share - basic | $ | 0.5 | $ | 1.08 | $ | 1.47 | $ | 0.98 | ||||||||
Net income per share - diluted | 0.49 | 1.07 | 1.45 | 0.97 | ||||||||||||
Period end membership | 2,703,000 | 2,842,000 | 2,824,000 | 2,846,000 | ||||||||||||
For the Three Month Periods Ended | ||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||
Total revenues | $ | 1,791.40 | $ | 1,811.10 | $ | 1,818.40 | $ | 1,988.10 | ||||||||
Gross margin | 266.8 | 263 | 266.9 | 299.6 | ||||||||||||
Income before income taxes | 79.3 | 77.3 | 62.4 | 77.4 | ||||||||||||
Net income | 51.2 | 46.4 | 38.3 | 48.8 | ||||||||||||
Net income per share - basic | $ | 1.19 | $ | 1.08 | $ | 0.89 | $ | 1.13 | ||||||||
Net income per share - diluted | 1.18 | 1.06 | 0.87 | 1.11 | ||||||||||||
Period end membership | 2,533,000 | 2,562,000 | 2,561,000 | 2,669,000 | ||||||||||||
The sum of the quarterly earnings per share amounts may not equal the amount reported for the full year since per share amounts are computed independently for each quarter and for the full year based on respective weighted-average shares outstanding and other dilutive potential shares and units. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
Acquisitions | |
On January 1, 2014, we acquired all of the outstanding stock of Windsor Health Group, Inc. ("Windsor") from Munich Health North America, Inc., a part of Munich Re. Through its subsidiaries, Windsor serves Medicare beneficiaries with MA, PDP and Medicare Supplement products. As of January 2014, Windsor offered MA plans in 192 counties in the states of Arkansas, Mississippi, South Carolina and Tennessee. In addition, one of Windsor’s subsidiaries offers Medicare Supplement insurance policies through which it serves over 40,000 members in 39 states. Windsor also offers PDPs in 11 of the 34 CMS regions. Due to the recency of the acquisition date, it was not practical for us to complete the valuation of the fair values of net tangible and intangible assets acquired as a result of this acquisition as of the date of this Form 10-K. We expect to complete the valuation and allocation of the purchase price during the first quarter of 2014. |
Schedule_I_CONDENSED_FINANCIAL
Schedule I CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
Schedule I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ' | |||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
WELLCARE HEALTH PLANS, INC. (Parent Company Only) | ||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
(In millions) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues: | ||||||||||||
Investment and other income | $ | 0.2 | $ | 0.1 | $ | 0.2 | ||||||
Total revenues | 0.2 | 0.1 | 0.2 | |||||||||
Expenses: | ||||||||||||
Selling, general and administrative | 15.2 | 17.4 | 23.4 | |||||||||
Interest expense | 11.8 | 4 | 2.1 | |||||||||
Total expenses | 27 | 21.4 | 25.5 | |||||||||
Loss from operations | (26.8 | ) | (21.3 | ) | (25.3 | ) | ||||||
Loss on extinguishment of debt | (2.8 | ) | — | — | ||||||||
Loss before income taxes | (29.6 | ) | (21.3 | ) | (25.3 | ) | ||||||
Income tax benefit | 8.9 | 5.7 | 7.5 | |||||||||
Loss before equity in subsidiaries | (20.7 | ) | (15.6 | ) | (17.8 | ) | ||||||
Equity in earnings of subsidiaries | 196 | 200.3 | 282 | |||||||||
Net income | 175.3 | 184.7 | 264.2 | |||||||||
Other comprehensive income, before tax: | ||||||||||||
Change in net unrealized gains and losses on available-for-sale securities | (0.8 | ) | 1.5 | 1 | ||||||||
Income tax expense related to other comprehensive income | (0.3 | ) | 0.6 | 0.4 | ||||||||
Other comprehensive income, net of tax | (0.5 | ) | 0.9 | 0.6 | ||||||||
Comprehensive income | $ | 174.8 | $ | 185.6 | $ | 264.8 | ||||||
See notes to consolidated financial statements. | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
WELLCARE HEALTH PLANS, INC. (Parent Company Only) | ||||||||||||
BALANCE SHEETS | ||||||||||||
(In millions, except share data) | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Assets | ||||||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | $ | 271.3 | $ | 3.7 | ||||||||
Investments | 2.3 | 2.3 | ||||||||||
Taxes receivable | 2.6 | 9.5 | ||||||||||
Deferred income taxes | — | 0.1 | ||||||||||
Affiliate receivables and other current assets | 364.7 | 217 | ||||||||||
Total current assets | 640.9 | 232.6 | ||||||||||
Deferred tax asset | 7.9 | 11.8 | ||||||||||
Investment in subsidiaries | 1,465.10 | 1,269.70 | ||||||||||
Deposits and other assets | 10.1 | 1.5 | ||||||||||
Total Assets | $ | 2,124.00 | $ | 1,515.60 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current Liabilities: | ||||||||||||
Current portion of long-term debt | $ | — | $ | 15 | ||||||||
Other current liabilities | 6.1 | 57.5 | ||||||||||
Total current liabilities | 6.1 | 72.5 | ||||||||||
Long-term debt | 600 | 120 | ||||||||||
Total liabilities | 606.1 | 192.5 | ||||||||||
Commitments and contingencies (see Note 13) | ||||||||||||
Stockholders' Equity: | ||||||||||||
Preferred stock, $0.01 par value (20,000,000 authorized, no shares issued or outstanding) | — | — | ||||||||||
Common stock, $0.01 par value (100,000,000 authorized, 43,766,645 and 43,212,375 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively) | 0.4 | 0.4 | ||||||||||
Paid-in capital | 489.4 | 469.4 | ||||||||||
Retained earnings | 1,029.40 | 854.1 | ||||||||||
Accumulated other comprehensive loss | (1.3 | ) | (0.8 | ) | ||||||||
Total stockholders' equity | 1,517.90 | 1,323.10 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,124.00 | $ | 1,515.60 | ||||||||
See notes to consolidated financial statements. | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
WELLCARE HEALTH PLANS, INC. (Parent Company Only) | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
(In millions) | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net cash provided by (used in) operating activities | $ | 204.9 | $ | (23.3 | ) | $ | 8.5 | |||||
Cash used in investing activities: | ||||||||||||
Net proceeds (payments) from purchases and sales and maturities of investments | — | 0.9 | — | |||||||||
Payments to subsidiaries, net | (398.5 | ) | (41.1 | ) | (95.9 | ) | ||||||
Net cash used in investing activities | (398.5 | ) | (40.2 | ) | (95.9 | ) | ||||||
Cash provided by (used in) financing activities: | ||||||||||||
Proceeds from debt, net of payment of issuance costs | 816.4 | (0.6 | ) | 148 | ||||||||
Payments on debt | (365.0 | ) | (11.3 | ) | (3.7 | ) | ||||||
Proceeds from options exercised and other, net | 10.3 | 9.4 | 6.3 | |||||||||
Repurchase and retirement of shares to satisfy tax withholding | (4.1 | ) | (6.5 | ) | (3.7 | ) | ||||||
Incremental tax benefit from option exercises | 3.6 | 3.8 | 2.8 | |||||||||
Net cash provided by (used in) financing activities | 461.2 | (5.2 | ) | 149.7 | ||||||||
Cash and cash equivalents: | ||||||||||||
Increase (decrease) during year | 267.6 | (68.7 | ) | 62.3 | ||||||||
Balance at beginning of year | 3.7 | 72.4 | 10.1 | |||||||||
Balance at end of year | $ | 271.3 | $ | 3.7 | $ | 72.4 | ||||||
See notes to consolidated financial statements. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | |||||||||||||||
Balance at | Charged to | Write Offs | Balance at | |||||||||||||
Beginning of Period | Costs and | End of Period | ||||||||||||||
Expenses | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Deducted from assets: | ||||||||||||||||
Allowance for uncollectible accounts: | ||||||||||||||||
Premiums receivable | $ | 14.8 | $ | 10.7 | $ | 9.7 | $ | 15.8 | ||||||||
Receivables for non-member claims paid | — | — | — | — | ||||||||||||
Medical advances | 1.5 | (0.1 | ) | — | 1.4 | |||||||||||
Total | $ | 16.3 | $ | 10.6 | $ | 9.7 | $ | 17.2 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Deducted from assets: | ||||||||||||||||
Allowance for uncollectible accounts: | ||||||||||||||||
Premiums receivable | $ | 10.4 | $ | 14.8 | $ | 10.4 | $ | 14.8 | ||||||||
Receivables for non-member claims paid | 4 | 1.6 | 5.6 | — | ||||||||||||
Medical advances | 1.3 | 0.2 | — | 1.5 | ||||||||||||
Total | $ | 15.7 | $ | 16.6 | $ | 16 | $ | 16.3 | ||||||||
Year Ended December 31, 2011 | ||||||||||||||||
Deducted from assets: | ||||||||||||||||
Allowance for uncollectible accounts: | ||||||||||||||||
Premiums receivable | $ | 16.1 | $ | 7.1 | $ | 12.8 | $ | 10.4 | ||||||||
Receivables for non-member claims paid | 1.1 | 4 | 1.1 | 4 | ||||||||||||
Medical advances | 1.3 | — | — | 1.3 | ||||||||||||
Total | $ | 18.5 | $ | 11.1 | $ | 13.9 | $ | 15.7 | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Revenue Recognition | ' | |||||||
Revenue Recognition and Premiums Receivable | ||||||||
We earn premium revenue through our participation in Medicaid, Medicaid-related and Medicare programs. Our contracts with various state Medicaid programs generally are multi-year contracts subject to annual renewal provisions. Our Medicare contracts with CMS renew annually. Our Medicare and Medicaid contracts establish fixed, monthly rates per member ("PMPM"). However, our contracts also have additional provisions as described in the sections below. The premiums we receive for each member vary according to the specific government program and are generally determined at the beginning of each new contract renewal period or each state's fiscal year; however, premiums may be adjusted by CMS and state agencies throughout the terms of the contracts in certain cases, as described below. | ||||||||
In some instances, our fixed Medicaid premiums are subject to risk score adjustments based on the acuity of our membership. Generally, the risk score is determined by the state agency's analysis of encounter submissions of processed claims data to determine the acuity of our membership relative to the entire state's Medicaid membership. | ||||||||
We recognize premium revenue in the period in which we are obligated to provide services to our members. We are generally paid by CMS and state agencies in the month in which we provide services. On a monthly basis, we bill members for any premiums for which they are responsible according to their respective plan. We record premiums earned but not received as premiums receivable and record premiums received in advance of the period of service as unearned premiums in the consolidated balance sheets. Unearned premiums are recognized as revenue when we provide the related services. Member premiums are recognized as revenue in the period of service. We estimate, on an on-going basis, the amount of members' billings that may not be collectible, based on our evaluation of historical trends. An allowance is established for the estimated amount that may not be collectible. In addition, we routinely monitor the collectability of specific premiums receivable from CMS and state agencies, including Medicaid receivables for obstetric deliveries and newborns and net receivables for member retroactivity and reduce revenue and premiums receivable by the amount we estimate may not be collectible. We reported premiums receivable net of an allowance for uncollectible premiums receivable of $15.8 million and $14.8 million at December 31, 2013 and 2012, respectively. Historically, the allowance for member premiums receivable has not been material relative to consolidated premium revenue. | ||||||||
Premium payments are based upon eligibility lists produced by CMS and state agencies. We verify these lists to determine | ||||||||
whether we have been paid for the correct premium category and program. From time to time, CMS and state agencies require | ||||||||
us to reimburse them for premiums that we received for individuals who were subsequently determined by us, or by CMS or | ||||||||
state agencies, to be ineligible for any government-sponsored program or to belong to a plan other than ours. Additionally, the | ||||||||
verification of membership may result in additional premiums due to us from CMS and state agencies for individuals who were | ||||||||
subsequently determined to belong to our plan for periods in which we received no premium for those members. We estimate the amount of outstanding retroactivity adjustments and adjust premium revenue based on historical trends, premiums billed, the volume of member and contract renewal activity and other information. We record amounts receivable or payable in premiums receivable, net and other accrued expenses and liabilities in the consolidated balance sheets. In 2011, we reached a settlement with the Georgia Department of Community Health (the "Georgia DCH") to resolve issues with certain premium payments from the inception of the program in 2006 through the date of settlement related to the reconciliation of duplicate member records. The settlement resulted from a comprehensive review and negotiation involving the three health plans that operate in the program. During the year ended December 31, 2011, we recorded additional retroactive premium revenue and a receivable from the Georgia DCH of $29.5 million related to the negotiated settlement. During the year ended December 31, 2012, CMS partially disallowed the settlement and we recorded a reduction of premium revenue of approximately $21.4 million. Amounts receivable from government agencies for member retroactivity were $30.7 million and $28.0 million at December 31, 2013 and 2012, respectively. The amounts due to government agencies for reconciling items were $13.2 million and $19.9 million at December 31, 2013 and 2012, respectively. | ||||||||
Medicaid Provisions | ||||||||
In some instances, our Medicaid fixed base PMPM premiums are subject to risk score adjustments based on the health | ||||||||
profile of our membership. Generally, the risk score is determined by the state agency's analysis of encounter submissions of | ||||||||
processed claims data to determine the acuity of our membership relative to the entire state's Medicaid membership. In some | ||||||||
states, supplemental payments are received for certain services such as high cost drugs and early childhood prevention | ||||||||
screenings. | ||||||||
We earn supplemental premium payments for eligible obstetric deliveries and newborns of our Medicaid members in Georgia, Illinois, Missouri, New York, South Carolina and, until June 30, 2013, Ohio. Each state Medicaid contract specifies how and when these supplemental payments are earned and paid. Upon delivery of a newborn, we notify the state agency according to the contract terms. We recognize supplemental premium revenue in the period that the delivery occurs and the related services are provided to our member. For the years ended December 31, 2013, 2012, and 2011 we recognized approximately $242.9 million, $246.3 million and $236.1 million, respectively, of supplemental Medicaid premium revenue. | ||||||||
Risk-Adjusted Medicare Premiums | ' | |||||||
Medicare Risk-Adjusted Premiums | ||||||||
CMS employs a risk-adjustment model to determine the premium amount it pays for each MA and PDP member. This model apportions premiums paid to all plans according to the health status of each beneficiary enrolled, resulting in higher scores for members with predictably higher costs. The model uses diagnosis data from inpatient and ambulatory treatment settings to calculate each risk score. We collect claims and encounter data for our MA members and submit the necessary diagnosis data to CMS within prescribed deadlines. After reviewing the respective submissions, CMS establishes the premium payments to MA plans at the beginning of the plan year, and then adjusts premium levels on a retroactive basis. The first retroactive adjustment for a given plan year generally occurs during the third quarter of that year and represents the update of risk scores for the current plan year based on the severity of claims incurred in the prior plan year. CMS then issues a final retroactive risk-adjusted premium settlement for that plan year in the following year. | ||||||||
We develop our estimates for risk-adjusted premiums utilizing historical experience and predictive models as sufficient member risk score data becomes available over the course of each CMS plan year. We populate our models with available risk score data on our members and base risk premium adjustments on risk score data from the previous year. We are not privy to risk score data for members new to our plans in the current plan year; therefore we include assumptions, if estimable, regarding these members' risk scores. We periodically revise our estimates of risk-adjusted premiums as additional diagnosis code information is reported to CMS and adjust our estimates to actual amounts when the ultimate adjustment settlements are either received from CMS or we receive notification from CMS of such settlement amounts. As a result of the variability of factors that determine our estimates for risk-adjusted premiums, the actual amount of the CMS retroactive payment could be materially more or less than our estimates and could have a material effect on our results of operations, financial position and cash flows. We record any changes in estimates in current operations as adjustments to premium revenue. Historically, we have not experienced significant differences between our estimates and amounts ultimately received. However, during third quarter of 2013, we recognized risk adjusted premium received as part of the 2012 final settlement that was higher than our original estimates, mainly related to members in our California MA plan that were new to Medicare in 2012. Additionally, the data provided to CMS to determine members' risk scores is subject to audit by CMS even after the annual settlements occur. Our Florida and Arizona MA plans have been selected by CMS for audits of the 2011 contract year and we anticipate that CMS will conduct audits of other contracts and contract years on an on-going basis. An audit may result in the refund of premiums to CMS. While our experience to date has not resulted in a material refund, future refunds could materially reduce premium revenue in the year in which CMS determines a refund is required and could be material to our results of operations, financial position and cash flows. Premiums receivable in the accompanying consolidated balance sheets include risk adjusted premiums receivables of $107.2 million and $79.6 million as of December 31, 2013 and 2012, respectively. | ||||||||
Minimum Medical Expense Provisions | ' | |||||||
Minimum Medical Expense and Risk Corridor Provisions | ||||||||
We may be required to refund certain premium revenue to CMS and state government agencies under various contractual and plan arrangements. We estimate the impact of the following arrangements on a monthly basis and reflect any adjustments to premium revenues in current operations. We report the estimated net amounts due to CMS and state agencies in other payables to government partners in the consolidated balance sheets. | ||||||||
Certain of our Florida Medicaid contracts and our Illinois Medicaid contract require us to expend a minimum percentage of premiums on eligible medical benefits expense. To the extent that we expend less than the minimum percentage of the premiums on eligible medical benefits expense, we are required to refund to the state all or some portion of the difference between the minimum and our actual allowable medical benefits expense. We estimate the amounts due to the state agencies as a return of premium based on the terms of our contracts with the applicable state agency. Such amounts are included in the Consolidated Statements of Comprehensive Income as a reduction of premiums. | ||||||||
Our MA and PDP prescription drug plan premiums are subject to risk sharing through the CMS Medicare Part D risk corridor provisions. The risk corridor calculation compares our actual experience to the target amount of prescription drug costs, limited to costs under the standard coverage as defined by CMS, less rebates included in our submitted plan year bid. We receive additional premium from CMS if our actual claims experience is more than 5% above the target amount. We refund premiums to CMS if our actual claims experience is less than 5% below the target amount. We estimate the risk corridor receivable or payable throughout the year as if the annual contract were to terminate at the end of the reporting period and reflect any adjustments to premium in current operations. This estimate provides no consideration of future pharmacy claims experience, but does require us to consider factors that may not be certain, including membership, risk scores, prescription drug events, and rebates. Approximately nine months after the close of the annual plan year, CMS reconciles actual experience to the target amount and any differences are settled between CMS and our plans. We have not historically experienced material differences between the subsequent CMS settlement amount and our estimates. | ||||||||
Medicare Prospective Premium Payments | ' | |||||||
Medicare Part D Settlements | ||||||||
We receive certain Part D prospective subsidy payments from CMS for our MA and PDP members based on the estimated costs of providing prescription drug benefits over the plan year. After the close of the annual plan year, CMS reconciles our actual experience to the prospective payments we received and any differences are settled between CMS and our plans. As such, these subsidies represent funding from CMS for which we assume no risk. We do not recognize the receipt of these subsidies as premium revenue and we do not recognize the payments of related prescription drug benefits as medical benefits expense. We report the subsidies received and benefits paid on a net basis as funds receivable (held) for the benefit of members in the consolidated balance sheets. We also report the net receipts and payments as a financing activity in our consolidated statements of cash flows. CMS pays the following subsidies prospectively as a fixed PMPM amount based upon the plan year bid submitted by us: | ||||||||
Low-Income Cost Sharing Subsidy—CMS reimburses us for all or a portion of qualifying LIS members' deductible, coinsurance and co-payment amounts above the out-of-pocket threshold. | ||||||||
Catastrophic Reinsurance Subsidy—CMS reimburses us for 80% of the drug costs after a member reaches his or her out-of-pocket catastrophic threshold through a catastrophic reinsurance subsidy. | ||||||||
Coverage Gap Discount Subsidy—We advance the pharmaceutical manufacturers gap coverage discounts at the point of sale. On a periodic basis, CMS bills pharmaceutical manufacturers for discounts advanced by us. Pharmaceutical manufacturers remit payments for invoiced amounts directly to us. CMS reduces subsequent prospective payments made to us by the discount amounts billed to manufacturers. | ||||||||
CMS generally performs the Part D payment reconciliation in the fourth quarter of the following plan year based on prescription drug event data we submit to CMS within prescribed deadlines. After the Part D payment reconciliation for coverage gap discount subsidies, we may continue to report discounts to CMS for 37 months following the end of the plan year. CMS will invoice manufacturers for these discounts and we will be paid through the quarterly manufacturer payments. Historically, we have not experienced material adjustments related to the CMS annual reconciliation of prior plan year low-income cost sharing, catastrophic reinsurance and coverage gap discount subsidies | ||||||||
Medical Benefits Expense and Medical Benefits Payable | ' | |||||||
Medical Benefits Expense and Medical Benefits Payable | ||||||||
We recognize the cost of medical benefits in the period in which services are provided, including an estimate of the cost of medical benefits incurred but not reported ("IBNR"). Medical benefits expense includes direct medical expenses and certain medically-related administrative costs. | ||||||||
Direct medical expenses include amounts paid or payable to hospitals, physicians and providers of ancillary services, such as laboratories and pharmacies. We also record direct medical expenses for estimated referral claims related to health care providers under contract with us who are financially troubled or insolvent and who may not be able to honor their obligations for the costs of medical services provided by others. In these instances, we may be required to honor these obligations for legal or business reasons. Based on our current assessment of providers under contract with us, such losses have not been and are not expected to be significant.We record direct medical expense for our estimates of provider settlement due to clarification of contract terms, out-of-network reimbursement, claims payment differences and amounts due to contracted providers under risk-sharing arrangements. We estimate pharmacy rebates earned based on historical utilization of specific pharmaceuticals, current utilization and contract terms and record amounts as a reduction of recorded direct medical expenses. | ||||||||
Consistent with the criteria specified and defined in guidance issued by the Department of Health and Human Services ("HHS") for costs that qualify to be reported as medical benefits under the minimum medical loss ratio provision of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (the "Affordable Care Act"), we record certain medically-related administrative costs such as preventive health and wellness, care management, and other quality improvement costs, as medical benefits expense. All other medically-related administrative costs, such as utilization review services, network and provider credentialing and claims handling costs, are recorded in selling, general, and administrative expense. | ||||||||
Medical benefits payable represents amounts for claims fully adjudicated but not yet paid and estimates for IBNR. Our estimate of IBNR is the most significant estimate included in our consolidated financial statements.We determine our best estimate of the base liability for IBNR utilizing consistent standard actuarial methodologies based upon key assumptions which vary by business segment. Our assumptions include current payment experience, trend factors, and completion factors. Trend factors in our standard actuarial methodologies include contractual requirements, historic utilization trends, the interval between the date services are rendered and the date claims are paid, denied claims activity, disputed claims activity, benefit changes, expected health care cost inflation, seasonality patterns, maturity of lines of business, changes in membership and other factors. | ||||||||
After determining an estimate of the base liability for IBNR, we make an additional estimate, also using standard actuarial techniques, to account for adverse conditions that may cause actual claims to be higher than the estimated base reserve. We refer to this additional liability as the provision for moderately adverse conditions. Our estimate of the provision for moderately adverse conditions captures the potential adverse development from factors such as: | ||||||||
•our entry into new geographical markets; | ||||||||
•our provision of services to new populations such as the aged, blind and disabled; | ||||||||
•variations in utilization of benefits and increasing medical costs; | ||||||||
•changes in provider reimbursement arrangements; | ||||||||
•variations in claims processing speed and patterns, claims payment and the severity of claims; and | ||||||||
•health epidemics or outbreaks of disease such as the flu. | ||||||||
We consider the base actuarial model liability and the provision for moderately adverse conditions as part of our overall assessment of our IBNR estimate to properly reflect the complexity of our business, the number of states in which we operate, and the need to account for different health care benefit packages among those states. We evaluate our estimates of medical benefits payable as we obtain more complete claims information and medical expense trend data over time. Volatility in members' needs for medical services, provider claims submissions and our payment processes result in identifiable patterns emerging several months after the causes of deviations from our assumed trends occur. Changes in our estimates of medical benefits payable cannot typically be explained by any single factor, but are the result of a number of interrelated variables, all of which influence the resulting medical cost trend. We record differences between actual experience and estimates used to establish the liability, which we refer to as favorable and unfavorable prior period developments, as increases or decreases to medical benefits expense in the period we identify the differences. | ||||||||
Reinsurance | ' | |||||||
Reinsurance | ||||||||
We cede certain premiums and medical benefits to other insurance companies under various reinsurance agreements in order to increase our capacity to write larger risks and maintain our exposure to loss within our capital resources. We are contingently liable in the event the reinsurance companies do not meet their contractual obligations. We evaluate the financial condition of the reinsurance companies on a regular basis and only contract with well-known, well-established reinsurance companies that are supported by strong financial ratings. | ||||||||
Equity-Based Employee Compensation | ' | |||||||
Equity-Based Employee Compensation | ||||||||
During the second quarter of 2013, our stockholders approved the WellCare Health Plans, Inc. 2013 Incentive Compensation Plan (the "2013 Plan"). Upon approval of the 2013 Plan, a total of 2,500,000 shares of our common stock were available for issuance pursuant to the 2013 Plan, minus any shares subject to outstanding awards granted on or after January 1, 2013 under our 2004 Equity Incentive Plan ("the Prior Plan"). In addition, shares subject to awards forfeited under the Prior Plan will become available for issuance under the 2013 Plan. No further awards are permitted to be granted under our Prior Plan. The Compensation Committee of our Board of Directors (the "Compensation Committee") awards certain equity-based compensation under our stock plans, including stock options, restricted stock units ("RSUs"), performance stock units ("PSUs") and market stock units ("MSUs"). We estimate equity-based compensation expense based on awards ultimately expected to vest. We make assumptions of forfeiture rates at the time of grant and continuously reassess our assumptions based on actual forfeiture experience. | ||||||||
We estimate compensation cost for stock options, RSUs and MSUs based on the grant date fair value and recognize the expense ratably over the vesting period of the award. For stock options, the grant date fair value is measured using the Black-Scholes options-pricing model. For RSUs, the grant date fair value is based on the closing price of our common stock on the date of grant, and these awards typically vest one to three years from the date of grant. For MSUs, the grant date fair value is measured using a Monte Carlo simulation approach which estimates the fair value of awards based on randomly generated simulated stock-price paths through a lattice-type structure. MSUs expected to vest are recognized as expense on a straight-line basis over the vesting period, which is generally three years. The number of shares of common stock earned upon vesting is determined based on the ratio of the Company's common stock price during the last 30 days market trading days of the calendar year immediately preceding the vesting date to the comparable common stock price as of the grant date, applied to the base units granted. The performance ratio is capped at 150% or 200%, depending on the grant date. If our common stock price declines by more than 50% over the performance period, no shares are earned by the recipient. | ||||||||
At its sole discretion, the Compensation Committee sets certain financial and quality-based performance goals and a target award amount for each award of PSUs. PSUs generally cliff-vest three years from the grant date based on the achievement of the performance goals and conditioned on the employee's continued service through the vesting date. The actual number of common stock shares earned upon vesting will range from zero shares up to 150% or 200% of the target award, depending on the award date. Our PSUs are subject to variable accounting since they do not have a grant date fair value for accounting purposes due to the subjective nature of the terms of the PSUs which precludes a mutual understanding of the key terms and conditions. We recognize expense for PSUs ultimately expected to vest over the requisite service period based our estimates of progress made towards the achievement of the predetermined performance measures and changes in the market price of our common stock. | ||||||||
Member Acquisition Costs | ' | |||||||
Member Acquisition Costs | ||||||||
We incur member acquisition costs, including internal commissions, external agent commissions on renewal policies, agent referral commissions, policy issuance and other administrative costs, in the acquisition and retention of our members. We record these costs as selling, general and administrative expense in the period we incur them. | ||||||||
We advance commissions to external agents and brokers for the acquisition of new members to our MA and PDP plans and defer amortization of these costs to the period in which we earn associated premium revenue, which is generally not more than one year. | ||||||||
Advertising Costs | ' | |||||||
Advertising Costs | ||||||||
We record the production costs of advertising activities as selling, general and administrative expense when incurred. We expense the costs of advertising campaigns in the period the advertising takes place. We recorded advertising and related marketing expense of $3.2 million, $7.2 million, and $8.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
Medicaid Premium Taxes | ' | |||||||
Medicaid Premium Taxes | ||||||||
Premium rates established in the Medicaid contracts with Georgia, Hawaii and New York, and, until June 30, 2013, Ohio, include, or included, an assessment or tax on Medicaid premiums. We recognize the premium tax assessment as expense in the period we earn the related premium revenue and remit the taxes back to the state agencies on a periodic basis. We incurred Medicaid premium taxes of $75.7 million, $82.2 million and $76.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
Income Tax Expense (Benefit) | ' | |||||||
Income Tax Expense (Benefit) | ||||||||
We record income tax expense (benefit) as incurred based on enacted tax rates, estimates of book-to-tax differences in income, and projections of income that will be earned in each taxing jurisdiction. We recognize deferred tax assets and liabilities for the estimated future tax consequences of differences between the carrying amounts of existing assets and liabilities and their respective tax basis. We measure deferred tax assets and liabilities using tax rates applicable to taxable income in the years in which we expect to recover or settle those temporary differences. We record a valuation allowance on deferred taxes if we determine it is more likely than not that we will not fully realize the future benefit of deferred tax assets. We file tax returns after the close of our fiscal year end and adjust our estimated tax receivable or liability to the actual tax receivable or due per the filed state and federal tax returns. Historically, we have not experienced significant differences between our estimates of income tax expense (benefit) and actual amounts incurred. | ||||||||
State and federal taxing authorities may challenge the positions we take on our filed tax returns. We evaluate our tax positions and only recognize a tax benefit if it is more likely than not that a tax audit will sustain our conclusion. Based on our evaluation of tax positions, we believe that potential tax exposures have been recorded appropriately. State and federal taxing authorities may propose additional tax assessments based on periodic audits of our tax returns. We believe our tax positions comply with applicable tax law in all material aspects and we will vigorously defend our positions on audit. The ultimate resolution of these audits may materially impact our financial position, results of operations or cash flows. We have not experienced material adjustments to our consolidated financial statements as a result of these audits. | ||||||||
We participate in the Internal Revenue Service ("IRS") Compliance Assurance Program ("CAP"). The objective of CAP is to reduce taxpayer burden and uncertainty by working with the IRS to ensure tax return accuracy prior to filing, thereby reducing or eliminating the need for post-filing examinations. | ||||||||
Other Comprehensive Income | ' | |||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
We classify unrestricted cash and short-term investments with original maturities of three months or less as cash and cash equivalents in the consolidated balance sheets. We record cash and cash equivalents at cost, which approximates fair value. | ||||||||
Investments | ' | |||||||
Investments | ||||||||
We classify our fixed maturity securities, including short-term, long-term, and restricted investments, as available-for-sale and report them at fair value. We record unrealized gains and losses on securities, net of deferred income taxes, as a separate component of accumulated other comprehensive loss in the consolidated balance sheets. We record investment income when earned and classify investment income earned but not received in prepaid expenses and other current assets in the consolidated balance sheets. We may purchase fixed maturity securities at a premium or discount. We amortize these premiums and discounts as adjustments to investment income over the estimated remaining term of the securities. We determine realized gains and losses on sales of securities on a specific identification basis. | ||||||||
We determine the fair value of fixed maturity securities based on quoted prices in active markets or market prices provided by a third-party pricing service. The third-party pricing service determines market prices using inputs such as reported trades, benchmark yields, issuer spreads, bids, offers, estimated cash flows and prepayment spreads. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, third party pricing services will normally derive the security prices through recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information. If there are no recent reported trades, the pricing services may use matrix or model processes to develop a security price using future cash flow expectations based upon collateral performance and discount this at an estimated market rate. Our long-term investments include municipal note investments with an auction reset feature ("auction-rate securities"). We record the fair value of these auction-rate securities based on a discounted cash flow analysis. | ||||||||
We regularly compare the fair value of our investments to amortized cost of those investments. The evaluation of impairment is a quantitative and qualitative process which is subject to risk and uncertainties. Our fixed maturity investments are exposed to four primary sources of investment risk: credit, interest rate, liquidity and market valuation. The financial statement risks are those associated with the recognition of impairments and income, as well as the determination of fair values. | ||||||||
We perform a case-by-case evaluation of the underlying reasons for the decline in fair value and consider a wide range of factors about the security issuer, including assumptions and estimates about the operations of the issuer and its future earnings potential. We use our best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Our evaluation of impairment includes, but is not limited to: | ||||||||
• | the length of time and the extent to which the market value has been below cost; | |||||||
• | the potential for impairments of securities when the issuer is experiencing significant financial difficulties; | |||||||
• | the potential for impairments in an entire industry sector or sub-sector; | |||||||
• | the potential for impairments in certain economically depressed geographic locations; | |||||||
• | the potential for impairments of securities where the issuer, series of issuers or industry has suffered a catastrophic type of loss or has exhausted natural resources; | |||||||
• | unfavorable changes in forecasted cash flows on asset-backed securities; and | |||||||
• | other subjective factors, including concentrations and information obtained from regulators and rating agencies. | |||||||
We recognize impairments of securities when we consider a decline in fair value below the amortized cost basis to be other-than-temporary. If we intend to sell a security, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, we recognize an other-than-temporary impairment (OTTI) in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If we do not intend to sell the security and it is more likely than not that we will not be required to sell the security before recovery of its amortized cost basis, but the present value of the cash flows expected to be collected is less than the amortized cost basis of the security (referred to as the credit loss), we conclude an OTTI has occurred. In this instance, we bifurcate the total OTTI into the amount related to the credit loss, which we recognize in earnings as investment income, net, with the remaining amount of the total OTTI attributed to other factors (referred to as the noncredit portion) recognized as a separate component in other comprehensive income. After the recognition of an OTTI, we account for the security as if it had been purchased on the measurement date of the OTTI, with an amortized cost basis equal to the previous amortized cost basis less than the OTTI recognized in earnings. | ||||||||
Restricted Investments | ' | |||||||
Restricted Investments | ||||||||
As a condition for licensure, we are required to maintain certain funds on deposit or pledged to various state agencies. Certain of our state contracts require the issuance of surety bonds. We record our restricted investments, which include cash, cash equivalents, and other short-term investments, at fair value. We classify restricted investments as long-term regardless of the contractual maturity date of the securities held, due to the nature of the states' requirements. | ||||||||
Prepaid Expenses and Other Current Assets | ' | |||||||
Prepaid Expenses and Other Current Assets | ||||||||
Prepaid expenses and other current assets, net, are comprised of the following (in millions): | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Prepaid expenses | $ | 58.4 | $ | 61.4 | ||||
Pharmaceutical coverage gap discounts receivable | 13.5 | 7.2 | ||||||
Advances to providers | 6.8 | 5.6 | ||||||
Other | 37.6 | 23.6 | ||||||
116.3 | 97.8 | |||||||
Allowance for uncollectible advances to providers | (1.3 | ) | (1.5 | ) | ||||
Prepaid expenses and other current assets, net | $ | 115 | $ | 96.3 | ||||
Property, Equipment and Capitalized Software, net | ' | |||||||
Property, Equipment and Capitalized Software, net | ||||||||
Property, equipment and capitalized software are stated at historical cost, net of accumulated depreciation. We capitalize certain costs incurred in the development of internal-use software, including external direct costs of materials and services and payroll costs of employees devoted to specific software development. We expense other software development costs, such as training and data conversion costs, as incurred. We capitalize the costs of improvements that extend the useful lives of the related assets. | ||||||||
We record depreciation expense using the straight-line method over the estimated useful lives of the related assets, which ranges from three to ten years for leasehold improvements, five for furniture and equipment, and three to five years for computer equipment and software. We include amortization of equipment under capital leases in depreciation expense. We record maintenance and repair costs as selling, general and administrative expense when incurred. | ||||||||
On an ongoing basis, we review events or changes in circumstances that may indicate that the carrying value of an asset may not be recoverable. If the carrying value of an asset exceeds the sum of estimated undiscounted future cash flows, we recognize an impairment loss in the current period for the difference between estimated fair value and carrying value. If assets are determined to be recoverable but the useful lives are shorter than we originally estimated, we depreciate the remaining net book value of the asset over the newly determined remaining useful lives. During the third quarter of 2013, we determined that we would be discontinuing certain projects going forward and, as a result, the software and development costs acquired to support these projects would not be fully recoverable. In accordance with the guidance for the impairment of long-lived assets, we evaluated these assets for recovery and recorded a pre-tax asset impairment charge of $9.0 million, which is included in selling, general and administrative expenses in our Consolidated Statement of Comprehensive Income for for the year ended December 31, 2013. We did not recognize any impairment losses during the years ended December 31, 2012 or 2011. | ||||||||
Acquisitions | ' | |||||||
Goodwill and Other Intangible Assets | ' | |||||||
Goodwill and Intangible Assets | ||||||||
Goodwill represents the excess of the cost over the fair market value of net assets acquired. Goodwill recorded at December 31, 2013 was $236.8 million, which consisted of $126.8 million and $110.0 million attributable to our Medicaid and Medicare Advantage reporting segments, respectively. Goodwill recorded at December 31, 2012 was $223.8 million, which consisted of $111.1 million and $112.7 million attributable to our Medicaid and Medicare Advantage reporting segments, respectively. | ||||||||
Other intangible assets include provider networks, broker networks, trademarks, state contracts, non-compete agreements, licenses and permits. We amortize other intangible assets over their estimated useful lives ranging from approximately one to 15 years. These assets are allocated to reporting segments for impairment testing purposes. | ||||||||
We review goodwill and intangible assets for impairment at least annually, or more frequently if events or changes in our business climate occur that may potentially affect the estimated useful life or the recoverability of the remaining balance of goodwill or intangible assets. Such events or changes in circumstances would include significant changes in membership, state funding, federal and state government contracts and provider networks. We believe that such assets are not impaired as of December 31, 2013. To determine whether goodwill is impaired, we perform a multi-step impairment test. First, we can elect to perform a qualitative assessment of each reporting unit to determine whether facts and circumstances support a determination that their fair values are greater than their carrying values. If the qualitative analysis is not conclusive, or if we elect to proceed directly with quantitative testing, we will then measure the fair values of the reporting units using a two-step approach. In the first step, we determine the fair value of the reporting unit using both income and market approaches. We calculate fair value based on our assumptions of key factors such as projected revenues and the discount factor. While we believe these assumptions and estimates are appropriate, other assumptions and estimates could be applied and may produce significantly different results. If the fair value of the reporting unit is less than its carrying value, we measure and record the amount of the goodwill impairment, if any, by comparing the implied fair value of the reporting unit's goodwill to the carrying value. We perform our annual goodwill impairment test based on our financial position and results of operations through the second quarter of each year, which generally coincides with the finalization of federal and state contract negotiations and our initial budgeting process. | ||||||||
In 2013, we elected to bypass the optional qualitative fair value assessment and conducted our annual quantitative test for goodwill impairment during the third quarter of 2013. Based on the results of our quantitative test, we determined that the fair values of our reporting units exceeded their carrying values and therefore no further testing was required, and we believe that such assets are not impaired as of December 31, 2013. | ||||||||
Deposits and Other Assets | ' | |||||||
Deposits and Other Assets | ||||||||
Deposits and other assets as of December 31, 2013 includes approximately $133.6 million advanced on December 31, 2013 in connection with the Windsor acquisition, which closed on January 1, 2014. The advance was paid in accordance with the terms of the purchase agreement; however, control of ownership did not transfer to us until the January 1, 2014 closing date. The $133.6 million is included in "Cash advanced for acquisitions" within cash used in investing activities within our Consolidated Statement of Cash Flows for the year ended December 31, 2013. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||
Pro Forma Financial Information | |||||||||
The results of operations and financial condition for our 2012 and 2013 acquisitions have been included in our consolidated financial statements since the respective acquisition dates. The unaudited pro forma financial information presented below assumes that the acquisitions occurred as of January 1, 2012. The pro forma adjustments include the pro forma effect of the amortization of finite-lived intangible assets arising from the purchase price allocations, adjustments necessary to align the acquired companies' accounting policies to our accounting policies and the associated income tax effects of the pro forma adjustments. The following unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations that would have occurred had the acquisitions been consummated at the beginning of the periods presented. | |||||||||
Pro forma- unaudited | |||||||||
For the Years Ended December 31, | |||||||||
(in millions, except per share data) | 2013 | 2012 | |||||||
Premium revenues | $ | 9,600.00 | $ | 8,140.70 | |||||
Net earnings | $ | 171.8 | $ | 189.6 | |||||
Earnings per share: | |||||||||
Basic | $ | 3.95 | $ | 4.4 | |||||
Diluted | $ | 3.9 | $ | 4.33 | |||||
Schedule of other payables to government partners | ' | ||||||||
A summary of other payables to government partners is as follows (in millions): | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Liability to states under minimum medical expense provisions | $ | 21 | $ | 14.5 | |||||
Liability to CMS under risk corridor provision | 16.3 | 73.8 | |||||||
Other payables to government partners | $ | 37.3 | $ | 88.3 | |||||
Funds receivable/held for the benefit of members | ' | ||||||||
Funds receivable (held) for the benefit of members consisted of the following (in millions): | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Low-income cost sharing subsidy | $ | 95.4 | $ | 52.9 | |||||
Catastrophic reinsurance subsidy | 19.6 | 90.4 | |||||||
Coverage gap discount subsidy | (21.5 | ) | (16.4 | ) | |||||
Other, net | — | (0.2 | ) | ||||||
Funds receivable for the benefit of members | $ | 93.5 | $ | 126.7 | |||||
Schedule of prepaid expenses and other current assets, net | ' | ||||||||
Prepaid expenses and other current assets, net, are comprised of the following (in millions): | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Prepaid expenses | $ | 58.4 | $ | 61.4 | |||||
Pharmaceutical coverage gap discounts receivable | 13.5 | 7.2 | |||||||
Advances to providers | 6.8 | 5.6 | |||||||
Other | 37.6 | 23.6 | |||||||
116.3 | 97.8 | ||||||||
Allowance for uncollectible advances to providers | (1.3 | ) | (1.5 | ) | |||||
Prepaid expenses and other current assets, net | $ | 115 | $ | 96.3 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Acquisition [Line Items] | ' | ||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||
Pro Forma Financial Information | |||||||||
The results of operations and financial condition for our 2012 and 2013 acquisitions have been included in our consolidated financial statements since the respective acquisition dates. The unaudited pro forma financial information presented below assumes that the acquisitions occurred as of January 1, 2012. The pro forma adjustments include the pro forma effect of the amortization of finite-lived intangible assets arising from the purchase price allocations, adjustments necessary to align the acquired companies' accounting policies to our accounting policies and the associated income tax effects of the pro forma adjustments. The following unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations that would have occurred had the acquisitions been consummated at the beginning of the periods presented. | |||||||||
Pro forma- unaudited | |||||||||
For the Years Ended December 31, | |||||||||
(in millions, except per share data) | 2013 | 2012 | |||||||
Premium revenues | $ | 9,600.00 | $ | 8,140.70 | |||||
Net earnings | $ | 171.8 | $ | 189.6 | |||||
Earnings per share: | |||||||||
Basic | $ | 3.95 | $ | 4.4 | |||||
Diluted | $ | 3.9 | $ | 4.33 | |||||
Easy Choice [Member] | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||
Cash and cash equivalents | $ | 23.5 | |||||||
Investments | 5.2 | ||||||||
Premiums receivable, net | 4.4 | ||||||||
Other intangible assets | 47.7 | ||||||||
Goodwill | 110 | ||||||||
Other assets | 11.6 | ||||||||
Total assets acquired | 202.4 | ||||||||
Medical benefits payable | (26.8 | ) | |||||||
Accrued expenses and other payables | (5.6 | ) | |||||||
Other payables to government partners | (2.3 | ) | |||||||
Deferred tax liability | (17.6 | ) | |||||||
Fair value of liabilities assumed | (52.3 | ) | |||||||
Fair value of net assets acquired | 150.1 | ||||||||
WellCare of South Carolina [Member] | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||
Cash and cash equivalents | $ | 11.5 | |||||||
Investments | 37.9 | ||||||||
Premiums receivable, net | 2.1 | ||||||||
Other intangible assets | 9.5 | ||||||||
Goodwill | 12.7 | ||||||||
Other assets | 2.4 | ||||||||
Total assets acquired | 76.1 | ||||||||
Medical benefits payable | (28.5 | ) | |||||||
Accrued expenses and other payables | (0.7 | ) | |||||||
Fair value of liabilities assumed | (29.2 | ) | |||||||
Fair value of net assets acquired | $ | 46.9 | |||||||
Missouri Care, Inc. [Member] | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||
Cash and cash equivalents | $ | 17.8 | |||||||
Premiums receivable, net | 33.9 | ||||||||
Other intangible assets | 7.1 | ||||||||
Goodwill | 3 | ||||||||
Other assets | 1.6 | ||||||||
Total assets acquired | 63.4 | ||||||||
Medical benefits payable | (43.1 | ) | |||||||
Fair value of liabilities assumed | (43.1 | ) | |||||||
Fair value of net assets acquired | $ | 20.3 | |||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Revenue by geographic location | ' | |||||||||||
Medicaid premium revenue attributable to Florida, Georgia, and for 2013 and 2012, Kentucky, each individually accounts for 10% or more of our consolidated premium revenue, net of premium tax, as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Florida | 12% | 13% | 15% | |||||||||
Georgia | 16% | 20% | 24% | |||||||||
Kentucky | 14% | 10% | 1% | |||||||||
Segment Results | ' | |||||||||||
A summary of financial information for our reportable operating segments through the gross margin level and a reconciliation to income before income taxes is presented in the tables below. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Premium revenue: | ||||||||||||
Medicaid | $ | 5,661.20 | $ | 4,471.20 | $ | 3,581.50 | ||||||
MA | 3,071.00 | 1,936.40 | 1,479.80 | |||||||||
PDP | 776.9 | 992.6 | 1,036.80 | |||||||||
Total premium revenue | 9,509.10 | 7,400.20 | 6,098.10 | |||||||||
Medical benefits expense: | ||||||||||||
Medicaid | 4,927.40 | 3,892.00 | 2,890.10 | |||||||||
MA | 2,659.50 | 1,630.60 | 1,198.80 | |||||||||
PDP | 671.7 | 781.3 | 859.1 | |||||||||
Total medical benefits expense | 8,258.60 | 6,303.90 | 4,948.00 | |||||||||
Gross margin: | ||||||||||||
Medicaid | 733.8 | 579.2 | 691.4 | |||||||||
MA | 411.5 | 305.8 | 281 | |||||||||
PDP | 105.2 | 211.3 | 177.7 | |||||||||
Total gross margin | 1,250.50 | 1,096.30 | 1,150.10 | |||||||||
Investment and other income | 18.8 | 8.8 | 8.7 | |||||||||
Other expenses | (988.2 | ) | (808.7 | ) | (751.2 | ) | ||||||
Income from operations | $ | 281.1 | $ | 296.4 | $ | 407.6 | ||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Weighted Average Number of Shares | ' | ||||||||
We calculated weighted-average common shares outstanding — diluted as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Weighted-average common shares outstanding — basic | 43,535,927 | 43,104,216 | 42,817,466 | ||||||
Dilutive effect of: | |||||||||
Unvested restricted stock units, market stock units and performance stock units | 342,346 | 526,030 | 305,622 | ||||||
Stock options | 122,290 | 196,039 | 205,668 | ||||||
Weighted-average common shares outstanding — diluted | 44,000,563 | 43,826,285 | 43,328,756 | ||||||
Anti-dilutive stock options, restricted stock awards and performance equity awards excluded from computation | 79,978 | 57,455 | 63,834 | ||||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Available-for-sale securities reconciliation | ' | |||||||||||||||||||
The amortized cost, gross unrealized gains or losses and estimated fair value of short-term and long-term investments by security type are summarized in the following tables. | ||||||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Auction rate securities | $ | 34.2 | $ | — | $ | (2.4 | ) | $ | 31.8 | |||||||||||
Certificates of deposit | 1.6 | — | — | 1.6 | ||||||||||||||||
Corporate debt and other securities | 104.5 | 0.1 | (0.1 | ) | 104.5 | |||||||||||||||
Money market funds | 43.4 | — | — | 43.4 | ||||||||||||||||
Municipal securities | 108.9 | — | — | 108.9 | ||||||||||||||||
Variable rate bond fund | 84.9 | 0.4 | — | 85.3 | ||||||||||||||||
U.S. government securities | 19.5 | 0.1 | — | 19.6 | ||||||||||||||||
Total | $ | 397 | $ | 0.6 | $ | (2.5 | ) | $ | 395.1 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Auction rate securities | $ | 34.2 | $ | — | $ | (2.2 | ) | $ | 32 | |||||||||||
Corporate debt and other securities | 62.2 | 0.1 | — | 62.3 | ||||||||||||||||
Money market funds | 9.5 | — | — | 9.5 | ||||||||||||||||
Municipal securities | 118.8 | — | (0.1 | ) | 118.7 | |||||||||||||||
Variable rate bond fund | 75 | 0.7 | — | 75.7 | ||||||||||||||||
U.S. government securities | 18.7 | 0.1 | — | 18.8 | ||||||||||||||||
Total | $ | 318.4 | $ | 0.9 | $ | (2.3 | ) | $ | 317 | |||||||||||
Contractual maturities of available-for-sale long-term investments | ' | |||||||||||||||||||
Contractual maturities of long-term available-for-sale investments at December 31, 2013 are as follows: | ||||||||||||||||||||
Total | Within | 1 Through 5 | 5 Through 10 | Thereafter | ||||||||||||||||
1 Year | Years | Years | ||||||||||||||||||
Auction rate securities | $ | 31.8 | $ | — | $ | — | $ | — | $ | 31.8 | ||||||||||
Certificates of deposit | 1.6 | 1.4 | 0.2 | — | — | |||||||||||||||
Corporate debt and other securities | 104.5 | 81 | 23.5 | — | — | |||||||||||||||
Money market funds | 43.4 | 43.4 | — | — | — | |||||||||||||||
Municipal securities | 108.9 | 99.9 | 9 | — | — | |||||||||||||||
Variable rate bond fund | 85.3 | 85.3 | — | — | — | |||||||||||||||
U.S. government securities | 19.6 | 3.7 | 15.9 | — | — | |||||||||||||||
Total | $ | 395.1 | $ | 314.7 | $ | 48.6 | $ | — | $ | 31.8 | ||||||||||
RESTRICTED_INVESTMENTS_Tables
RESTRICTED INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restricted Investments Note [Abstract] | ' | |||||||||||||||
Restricted investment assets | ' | |||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of our restricted cash and investment securities are as follows: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
December 31, 2013 | ||||||||||||||||
Money market funds | $ | 19 | $ | — | $ | — | $ | 19 | ||||||||
Cash | 40.2 | — | — | 40.2 | ||||||||||||
Certificates of deposit | 1.4 | — | — | 1.4 | ||||||||||||
U.S. government securities | 22 | — | (0.1 | ) | 21.9 | |||||||||||
Total | $ | 82.6 | $ | — | $ | (0.1 | ) | $ | 82.5 | |||||||
December 31, 2012 | ||||||||||||||||
Money market funds | $ | 18.6 | $ | — | $ | — | $ | 18.6 | ||||||||
Cash | 29.2 | — | — | 29.2 | ||||||||||||
Certificates of deposit | 1.6 | — | — | 1.6 | ||||||||||||
U.S. government securities | 18 | — | — | 18 | ||||||||||||
Total | $ | 67.4 | $ | — | $ | — | $ | 67.4 | ||||||||
PROPERTY_EQUIPMENT_AND_CAPITAL1
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of property and equipment | ' | |||||||
Property, equipment and capitalized software and related accumulated depreciation is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Leasehold improvements | $ | 22.2 | $ | 20.6 | ||||
Computer equipment | 62.9 | 52.9 | ||||||
Capitalized software | 185.4 | 147.6 | ||||||
Furniture and equipment | 22.4 | 19.2 | ||||||
292.9 | 240.3 | |||||||
Less accumulated depreciation | (145.5 | ) | (108.8 | ) | ||||
Total property and equipment, net | $ | 147.4 | $ | 131.5 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Schedule of changes in goodwill | ' | |||||||||||||||||||||||||
A summary of changes in our goodwill by reportable business segment is as follows for 2013 and 2012: | ||||||||||||||||||||||||||
Medicaid | MA | Total | ||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 111.1 | $ | — | $ | 111.1 | ||||||||||||||||||||
Acquisitions | — | 112.7 | 112.7 | |||||||||||||||||||||||
Balance as of December 31, 2012(1) | 111.1 | 112.7 | 223.8 | |||||||||||||||||||||||
Acquisitions and acquisition related adjustments | 15.7 | (2.7 | ) | 13 | ||||||||||||||||||||||
Balance as of December 31, 2013 (1) | $ | 126.8 | $ | 110 | $ | 236.8 | ||||||||||||||||||||
Summary of acquired intangible assets resulting from business acquisitions | ' | |||||||||||||||||||||||||
Other intangible assets as of December 31, 2013 and 2012, and the related weighted-average amortization periods as of December 31, 2013, are as follows: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Weighted Average Amortization Period (In Years) | Gross Carrying Amount | Accumulated Amortization | Other Intangibles, Net | Gross Carrying Amount | Accumulated Amortization | Other Intangibles, Net | ||||||||||||||||||||
Provider networks | 15.4 | $ | 6.1 | $ | (2.5 | ) | $ | 3.6 | $ | 4 | $ | (2.1 | ) | $ | 1.9 | |||||||||||
Trademarks | 13.4 | 13.3 | (8.1 | ) | 5.2 | 12.1 | (6.9 | ) | 5.2 | |||||||||||||||||
Licenses and permits | 15 | 5.3 | (2.9 | ) | 2.4 | 5.3 | (2.5 | ) | 2.8 | |||||||||||||||||
State contracts | 13.7 | 56.6 | (6.4 | ) | 50.2 | 43.5 | (2.3 | ) | 41.2 | |||||||||||||||||
Other | 6.5 | 6.4 | (1.3 | ) | 5.1 | 1.9 | — | 1.9 | ||||||||||||||||||
Total other intangible assets | 13.3 | $ | 87.7 | $ | (21.2 | ) | $ | 66.5 | $ | 66.8 | $ | (13.8 | ) | $ | 53 | |||||||||||
Schedule of future amortization expense | ' | |||||||||||||||||||||||||
Amortization expense expected to be recognized during fiscal years subsequent to December 31, 2013 is as follows: | ||||||||||||||||||||||||||
Expected Amortization Expense | ||||||||||||||||||||||||||
2014 | $ | 7.3 | ||||||||||||||||||||||||
2015 | 7.2 | |||||||||||||||||||||||||
2016 | 7.1 | |||||||||||||||||||||||||
2017 | 6.3 | |||||||||||||||||||||||||
2018 | 5.3 | |||||||||||||||||||||||||
2019 and thereafter | 33.3 | |||||||||||||||||||||||||
Total | $ | 66.5 | ||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets measured at fair value on a recurring basis | ' | |||||||||||||||
Assets and liabilities measured at fair value on a recurrring basis at December 31, 2013 are as follows: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Carrying Value | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||
for Identical | Inputs | Inputs | ||||||||||||||
Assets | (Level 2) | (Level 3) | ||||||||||||||
(Level 1) | ||||||||||||||||
Investments: | ||||||||||||||||
Asset backed securities | $ | 1.6 | $ | — | $ | 1.6 | $ | — | ||||||||
Auction rate securities | 31.8 | — | — | 31.8 | ||||||||||||
Certificates of deposit | 1.6 | — | 1.6 | — | ||||||||||||
Corporate debt securities | 102.9 | — | 102.9 | — | ||||||||||||
Money market funds | 43.4 | 43.4 | — | — | ||||||||||||
Municipal securities | 108.9 | — | 108.9 | — | ||||||||||||
U.S. government securities | 19.6 | 19.6 | — | — | ||||||||||||
Variable rate bond fund | 85.3 | 85.3 | — | — | ||||||||||||
Total investments | $ | 395.1 | $ | 148.3 | $ | 215 | $ | 31.8 | ||||||||
Restricted investments: | ||||||||||||||||
Money market funds | $ | 19 | $ | 19 | $ | — | $ | — | ||||||||
Cash | 40.2 | 40.2 | — | — | ||||||||||||
Certificates of deposit | 1.4 | — | 1.4 | — | ||||||||||||
U.S. government securities | 21.9 | 21.9 | — | — | ||||||||||||
Total restricted investments | $ | 82.5 | $ | 81.1 | $ | 1.4 | $ | — | ||||||||
Amounts payable related to investigation resolution | $ | 70.3 | $ | — | $ | 70.3 | $ | — | ||||||||
Assets and liabilities measured at fair value on a recurring basis at December 31, 2012 are as follows: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Investments: | ||||||||||||||||
Asset backed securities | $ | 4.5 | $ | — | $ | 4.5 | $ | — | ||||||||
Auction rate securities | 32 | — | — | 32 | ||||||||||||
Corporate debt securities | 57.7 | — | 57.7 | — | ||||||||||||
Money market funds | 9.5 | 9.5 | — | — | ||||||||||||
Municipal securities | 118.8 | — | 118.8 | — | ||||||||||||
U.S. government securities | 18.8 | 18.8 | — | — | ||||||||||||
Variable rate bond fund | 75.7 | 75.7 | — | — | ||||||||||||
Total investments | $ | 317 | $ | 104 | $ | 176.5 | $ | 32 | ||||||||
Restricted investments: | ||||||||||||||||
Money market funds | $ | 18.6 | $ | 18.6 | $ | — | $ | — | ||||||||
Cash | 29.2 | 29.2 | — | — | ||||||||||||
Certificates of deposit | 1.6 | — | 1.6 | — | ||||||||||||
U.S. government securities | 18 | 18 | — | — | ||||||||||||
Total restricted investments | $ | 67.4 | $ | 65.8 | $ | 1.6 | $ | — | ||||||||
Amounts payable related to investigation resolution | $ | 105.5 | $ | — | $ | 105.5 | $ | — | ||||||||
Auction rate securities measured at fair value on a recurring basis using significant unobservable inputs | ' | |||||||||||||||
The following table presents the changes in the fair value of our Level 3 auction rate securities for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||||||||||
Balance as of January 1 | $ | 32 | $ | 32.4 | $ | 42.2 | ||||||||||
Realized gains (losses) in earnings | — | — | — | |||||||||||||
Changes in net unrealized gains and losses in other comprehensive income | (0.2 | ) | 0.4 | 1.4 | ||||||||||||
Purchases, sales and redemptions | — | (0.8 | ) | (11.2 | ) | |||||||||||
Net transfers in or (out) of Level 3 | — | — | — | |||||||||||||
Balance as of December 31 | $ | 31.8 | $ | 32 | $ | 32.4 | ||||||||||
MEDICAL_BENEFITS_PAYABLE_Table
MEDICAL BENEFITS PAYABLE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
MEDICAL BENEFITS PAYABLE [Abstract] | ' | |||||||||||
Schedule of Medical Benefits Payable | ' | |||||||||||
edical benefits payable consists of: | ||||||||||||
As of December 31, 2013 | % of Total | As of December 31, 2012 | % of Total | |||||||||
IBNR | $ | 690.1 | 72% | $ | 547.4 | 75% | ||||||
Other medical benefits payable | 263.3 | 28% | 185.6 | 25% | ||||||||
Total medical benefits payable | $ | 953.4 | 100% | $ | 733 | 100% | ||||||
Reconciliation of Medical Benefits Payable | ' | |||||||||||
A reconciliation of the beginning and ending balances of medical benefits payable is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 733 | $ | 744.8 | $ | 743 | ||||||
Acquisitions | 71.6 | — | — | |||||||||
Medical benefits incurred related to: | ||||||||||||
Current period | 8,333.20 | 6,450.50 | 5,200.10 | |||||||||
Prior period | (74.6 | ) | (146.6 | ) | (252.1 | ) | ||||||
Total | 8,258.60 | 6,303.90 | 4,948.00 | |||||||||
Medical benefits paid related to: | ||||||||||||
Current period | (7,490.6 | ) | (5,754.9 | ) | (4,533.9 | ) | ||||||
Prior periods | (619.2 | ) | (560.8 | ) | (412.3 | ) | ||||||
Total | (8,109.8 | ) | (6,315.7 | ) | (4,946.2 | ) | ||||||
Ending balance | $ | 953.4 | $ | 733 | $ | 744.8 | ||||||
DEBT_Tables
DEBT (Tables) | 3 Months Ended | ||
Mar. 31, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Schedule of Redemption Prices as Percentage of Principal Amount [Table Text Block] | ' | ||
On or after November 15, 2016, we may on any one or more occasions redeem all or part of the Senior Notes, at the redemption prices (expressed as percentages of principal amount) set forth below, if redeemed during the twelve-month period beginning on November 15 of the years indicated below, subject to the rights of holders of Senior Notes on the relevant record date to receive interest due on the relevant interest payment date: | |||
Period | Redemption Price | ||
2016 | 102.875 | % | |
2017 | 101.438 | % | |
2018 and thereafter | 100 | % |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future minimum lease payments | ' | |||
Future minimum lease payments under non-cancelable operating leases with initial or remaining lease terms in excess of one year at December 31, 2013 are as follows: | ||||
Minimum Lease Payments | ||||
2014 | $ | 20 | ||
2015 | 16.4 | |||
2016 | 11.2 | |||
2017 | 9.1 | |||
2018 | 4.4 | |||
2019 and thereafter | 6.8 | |||
Total | $ | 67.9 | ||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of income tax (benefit) expense | ' | |||||||||||
The following table provides components of income tax expense (benefit): | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 78.6 | $ | 84 | $ | 59.6 | ||||||
State | 7.5 | 8.6 | (1.2 | ) | ||||||||
86.1 | 92.6 | 58.4 | ||||||||||
Deferred: | ||||||||||||
Federal | 16 | 18.1 | 87 | |||||||||
State | 0.9 | 1 | 8.8 | |||||||||
16.9 | 19.1 | 95.8 | ||||||||||
Total income tax expense | $ | 103 | $ | 111.7 | $ | 154.2 | ||||||
Reconciliation of income tax effective rate to statutory rate | ' | |||||||||||
A reconciliation of income tax at the statutory federal rate of 35% to income tax at the effective rate is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax expense at statutory federal rate | $ | 97.4 | $ | 103.7 | $ | 146.5 | ||||||
Adjustments resulting from: | ||||||||||||
State income tax, net of federal benefit | 5.8 | 6.7 | 8.1 | |||||||||
Provision-to-return differences | — | — | (2.3 | ) | ||||||||
Non-deductible executive compensation | 5.1 | 2.4 | 1.6 | |||||||||
Non-deductible amounts related to investigation resolution | (6.9 | ) | (1.3 | ) | 0.2 | |||||||
Interest on unrecognized tax benefits | — | (0.1 | ) | (0.3 | ) | |||||||
Other, net | 1.6 | 0.3 | 0.4 | |||||||||
Total income tax expense | $ | 103 | $ | 111.7 | $ | 154.2 | ||||||
Deferred tax assets and liabilities | ' | |||||||||||
Significant components of our deferred tax assets and liabilities are: | ||||||||||||
As of December 31, | ||||||||||||
Deferred tax assets: | 2013 | 2012 | ||||||||||
Medical and other benefits discounting | $ | 11.7 | $ | 12.3 | ||||||||
Tax basis assets | 10.1 | 8.4 | ||||||||||
Allowance for doubtful accounts | 3.6 | 5.7 | ||||||||||
Amount payable related to investigation resolution | 13.7 | 13.1 | ||||||||||
Accrued expenses and other | 19 | 27.8 | ||||||||||
58.1 | 67.3 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Goodwill, other intangible assets and property and equipment | 26 | 28.7 | ||||||||||
Software development costs | 54.9 | 43 | ||||||||||
Prepaid assets | 8.9 | 10.5 | ||||||||||
89.8 | 82.2 | |||||||||||
Net deferred tax liability | $ | (31.7 | ) | $ | (14.9 | ) | ||||||
Deferred tax assets and liabilities by balance sheet classification | ' | |||||||||||
We classify deferred tax assets and liabilities in the consolidated balance sheets as follows: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 23.7 | $ | 27.2 | ||||||||
Non-current liabilities | (55.4 | ) | (42.1 | ) | ||||||||
Net deferred tax liability | $ | (31.7 | ) | $ | (14.9 | ) | ||||||
Reconciliation of beginning and ending unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Gross unrecognized tax benefits, beginning of period | $ | — | $ | 3.5 | ||||||||
Gross increases: | ||||||||||||
Prior year tax positions | — | — | ||||||||||
Current year tax positions | — | — | ||||||||||
Gross decreases: | ||||||||||||
Prior year settlements | — | — | ||||||||||
Prior year tax positions | — | (3.5 | ) | |||||||||
Statute of limitations lapses | — | — | ||||||||||
Gross unrecognized tax benefits, end of period | $ | — | $ | — | ||||||||
EQUITYBASED_COMPENSATION_Table
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Summary of stock option activity | ' | ||||||||||||
A summary of our stock option activity for the year ended December 31, 2013, and the aggregate intrinsic value and weighted average remaining contractual term for our stock options as of December 31, 2013, is: | |||||||||||||
Shares | Weighted | Aggregate | Weighted | ||||||||||
Average | Intrinsic | Average | |||||||||||
Exercise | Value | Remaining | |||||||||||
Price | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Outstanding as of January 1, 2013 | 435,876 | $ | 26.4 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (395,590 | ) | 26.59 | ||||||||||
Forfeited and expired | (8,905 | ) | 5.85 | ||||||||||
Outstanding as of December 31, 2013 (1) | 31,381 | 29.47 | $ | 1.3 | 1.3 | ||||||||
(1) All of the Company's outstanding stock options were vested and exercisable as of December 31, 2013. | |||||||||||||
Summary of restricted stock and restricted stock unit activity | ' | ||||||||||||
A summary of the activity for our restricted stock and RSU awards for the year ended December 31, 2013 is: | |||||||||||||
Restricted | Weighted | ||||||||||||
Stock and | Average | ||||||||||||
RSUs | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding as of January 1, 2013 | 273,174 | $ | 45.9 | ||||||||||
Granted | 209,481 | 57.45 | |||||||||||
Vested | (145,756 | ) | 38.71 | ||||||||||
Forfeited and expired | (77,063 | ) | 54.69 | ||||||||||
Outstanding as of December 31, 2013 | 259,836 | 56.51 | |||||||||||
Market Stock Units [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Summary of nonvested award activity | ' | ||||||||||||
A summary of the activity for our MSU awards for the year ended December 31, 2013 is: | |||||||||||||
MSUs | Weighted | ||||||||||||
Average | |||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Outstanding as of January 1, 2013 | 62,193 | $ | 74.03 | ||||||||||
Granted | 71,469 | 82.46 | |||||||||||
Vested | — | — | |||||||||||
Forfeited and expired | (49,773 | ) | 77.17 | ||||||||||
Outstanding as of December 31, 2013 | 83,889 | 79.38 | |||||||||||
Performance Share Awards [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Summary of nonvested award activity | ' | ||||||||||||
A summary of the activity for our PSU awards, which are subject to variable accounting, for the year ended December 31, 2013 is: | |||||||||||||
PSUs | Weighted | ||||||||||||
Average | |||||||||||||
Award-Issuance | |||||||||||||
Fair Value | |||||||||||||
Outstanding as of January 1, 2013 | 421,566 | $ | 46.81 | ||||||||||
Granted | 179,388 | 57.44 | |||||||||||
Vested | (90,347 | ) | 56.8 | ||||||||||
Forfeited and expired | (222,120 | ) | 51.63 | ||||||||||
Outstanding as of December 31, 2013 | 288,487 | 55.3 | |||||||||||
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Selected unaudited quarterly financial data | ' | |||||||||||||||
Selected unaudited quarterly financial data is as follows (in millions, except membership and per share data): | ||||||||||||||||
For the Three Month Periods Ended | ||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | |||||||||||||
Total revenues | $ | 2,256.60 | $ | 2,332.10 | $ | 2,500.40 | $ | 2,438.80 | ||||||||
Gross Margin | 265 | 311.5 | 350.9 | 323.1 | ||||||||||||
Income before income taxes | 22.9 | 77.2 | 106.8 | 71.4 | ||||||||||||
Net income | 21.5 | 46.9 | 64 | 42.9 | ||||||||||||
Net income per share - basic | $ | 0.5 | $ | 1.08 | $ | 1.47 | $ | 0.98 | ||||||||
Net income per share - diluted | 0.49 | 1.07 | 1.45 | 0.97 | ||||||||||||
Period end membership | 2,703,000 | 2,842,000 | 2,824,000 | 2,846,000 | ||||||||||||
For the Three Month Periods Ended | ||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | |||||||||||||
Total revenues | $ | 1,791.40 | $ | 1,811.10 | $ | 1,818.40 | $ | 1,988.10 | ||||||||
Gross margin | 266.8 | 263 | 266.9 | 299.6 | ||||||||||||
Income before income taxes | 79.3 | 77.3 | 62.4 | 77.4 | ||||||||||||
Net income | 51.2 | 46.4 | 38.3 | 48.8 | ||||||||||||
Net income per share - basic | $ | 1.19 | $ | 1.08 | $ | 0.89 | $ | 1.13 | ||||||||
Net income per share - diluted | 1.18 | 1.06 | 0.87 | 1.11 | ||||||||||||
Period end membership | 2,533,000 | 2,562,000 | 2,561,000 | 2,669,000 | ||||||||||||
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Jul. 31, 2002 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Transaction | Members | Members | Members | Members | Members | Members | Members | Members | OHIO | OHIO | OHIO | |
State | Members | Members | ||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk Adjusted Premiums | ' | $107.20 | ' | ' | ' | $79.60 | ' | ' | ' | ' | ' | ' |
Number of transactions for acquisition | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Membership | ' | 2,846,000 | 2,824,000 | 2,842,000 | 2,703,000 | 2,669,000 | 2,561,000 | 2,562,000 | 2,533,000 | ' | ' | ' |
Number of members | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,000 | 102,000 |
Percentage of consolidated membership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% |
Consolidated premium revenue, net of taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | $137.40 | $265.30 | $234.80 |
Number of states | ' | 49 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Premium revenues | $9,600 | $8,140.70 | ' | ' | ' |
Net earnings | 171.8 | 189.6 | ' | ' | ' |
Basic (in dollars per share) | $3.95 | $4.40 | ' | ' | ' |
Diluted (in dollars per share) | $3.90 | $4.33 | ' | ' | ' |
Payments advanced for acquisitions | ' | ' | 133.6 | 0 | 0 |
Minimum variance above target amount before CMS makes additional payments to plan sponsors | ' | ' | 5.00% | ' | ' |
Goodwill and other intangible assets, net [Abstract] | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 236.8 | 223.8 | 111.1 |
Premium revenue recognition [Abstract] | ' | ' | ' | ' | ' |
Allowance for uncollectible premium receivables | ' | ' | 15.8 | 14.8 | ' |
Additional retroactive revenue related to negotiated settlement from Georgia Department of Community Health | ' | ' | ' | ' | 29.5 |
Reduction of premium revenue related to negotiated settlement | ' | ' | ' | 21.4 | ' |
Amounts receivable from government agencies for reconciling items | ' | ' | 30.7 | 28 | ' |
Amounts due to government agencies for reconciling items | ' | ' | 13.2 | 19.9 | ' |
Medicaid [Abstract] | ' | ' | ' | ' | ' |
Premium revenue related to newborn and obstetric deliveries | ' | ' | 242.9 | 246.3 | 236.1 |
Variance threshold above which CMS must make additional payments to the company | ' | ' | 5.00% | ' | ' |
Other payables to government partners [Abstract] | ' | ' | ' | ' | ' |
Liability to states under minimum medical expense provisions | ' | ' | 21 | 14.5 | ' |
Liability to CMS under risk corridor provision | ' | ' | 16.3 | 73.8 | ' |
Other payables to government partners | ' | ' | 37.3 | 88.3 | ' |
Catastrophic Reinsurance Subsidy [Abstract] | ' | ' | ' | ' | ' |
Drug costs reimbursed | ' | ' | 80.00% | ' | ' |
Funds Recivable for the Benefit of Members [Abstract] | ' | ' | ' | ' | ' |
Low-income cost sharing subsidy | ' | ' | 95.4 | 52.9 | ' |
Catastrophic reinsurance subsidy | ' | ' | 19.6 | 90.4 | ' |
Coverage gap discount subsidy | ' | ' | -21.5 | -16.4 | ' |
Other, net | ' | ' | 0 | -0.2 | ' |
Funds receivable for the benefit of members | ' | ' | 93.5 | 126.7 | ' |
Advertising and related marketing activities [Abstract] | ' | ' | ' | ' | ' |
Advertising and related marketing expense | ' | ' | 3.2 | 7.2 | 8 |
Medicaid premium taxes [Abstract] | ' | ' | ' | ' | ' |
Medicaid premium taxes | ' | ' | 75.7 | 82.2 | 76.2 |
Prepaid expenses and other current assets, net [Abstract] | ' | ' | ' | ' | ' |
Prepaid expenses | ' | ' | 58.4 | 61.4 | ' |
Pharmaceutical coverage gap discounts receivable | ' | ' | 13.5 | 7.2 | ' |
Advances to providers | ' | ' | 6.8 | 5.6 | ' |
Other | ' | ' | 37.6 | 23.6 | ' |
Prepaid expenses and other current assets, gross | ' | ' | 116.3 | 97.8 | ' |
Allowance for uncollectible advances to providers | ' | ' | -1.3 | -1.5 | ' |
Prepaid expenses and other current assets, net | ' | ' | 115 | 96.3 | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Expected Annual Fees Mandated by Affordable Care Act in Next Fiscal Year | ' | ' | 125 | ' | ' |
Goodwill and other intangible assets, net [Abstract] | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Expected Annual Fees Mandated by Affordable Care Act in Next Fiscal Year | ' | ' | 135 | ' | ' |
Goodwill and other intangible assets, net [Abstract] | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '15 years | ' | ' |
Medicare Advantage [Member] | ' | ' | ' | ' | ' |
Goodwill and other intangible assets, net [Abstract] | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 110 | 112.7 | 0 |
Medicaid [Member] | ' | ' | ' | ' | ' |
Goodwill and other intangible assets, net [Abstract] | ' | ' | ' | ' | ' |
Goodwill | ' | ' | $126.80 | $111.10 | $111.10 |
Number of members | ' | ' | 47,000 | ' | ' |
Number of counties in state | ' | ' | 12 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Based Compensation (Details) | 12 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
PSU [Member] | Market Stock Units [Member] | 2013 Plan | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |
PSU [Member] | Market Stock Units [Member] | PSU [Member] | Market Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized (in shares) | ' | ' | 2,500,000 | ' | ' | ' | ' |
Vesting period of certain equity-based compensation | '3 years | '3 years | ' | ' | ' | ' | ' |
Number of calendar days preceding the end of the fiscal year prior to the vesting date with the maximum quotient | ' | '30 days | ' | ' | ' | ' | ' |
Cliff vesting target range percentage minimum | 0.00% | ' | ' | ' | ' | ' | ' |
Cliff vesting target range percentage maximum | ' | ' | ' | 150.00% | 150.00% | 200.00% | 200.00% |
Minimum quotient or payout cap of MSUs | ' | 50.00% | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Equipment and Capitalized Software, net (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Leasehold improvements | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '10 years |
Leasehold improvements | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Furniture and equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Computer equipment and software [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Computer equipment and software [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Line Items] | ' | ' | ' |
Payments advanced for acquisitions | $133.60 | $0 | $0 |
Goodwill | 236.8 | 223.8 | 111.1 |
Minimum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Estimated useful life | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Estimated useful life | '15 years | ' | ' |
Medicaid [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 126.8 | 111.1 | 111.1 |
Medicare Advantage [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $110 | $112.70 | $0 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Nov. 09, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2013 | Nov. 09, 2012 | Nov. 09, 2012 | Mar. 31, 2013 | Nov. 09, 2012 | Nov. 09, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Nov. 09, 2012 | Jan. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Easy Choice [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Missouri Care, Inc. [Member] | Arcadian Health Plan, Inc. [Member] | Arcadian Health Plan, Inc. [Member] | WellCare of South Carolina [Member] | WellCare of South Carolina [Member] | Noncompete Agreements [Member] | Trademarks | Trademarks | Other | Provider networks | Provider networks | Provider networks | Provider networks | State Contract [Member] | State Contract [Member] | State Contract [Member] | State Contract [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | Weighted Average [Member] | SOUTH CAROLINA | OHIO | OHIO | ||||||
Members | Members | Members | Members | Easy Choice [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Easy Choice [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Arcadian Health Plan, Inc. [Member] | WellCare of South Carolina [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Arcadian Health Plan, Inc. [Member] | WellCare of South Carolina [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Arcadian Health Plan, Inc. [Member] | WellCare of South Carolina [Member] | Noncompete Agreements [Member] | Trademarks | Trademarks | Other | Provider networks | Provider networks | Provider networks | Provider networks | State Contract [Member] | State Contract [Member] | State Contract [Member] | State Contract [Member] | WellCare of South Carolina [Member] | Members | Members | ||||||||||
Easy Choice [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Easy Choice [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Arcadian Health Plan, Inc. [Member] | WellCare of South Carolina [Member] | Easy Choice [Member] | Missouri Care, Inc. [Member] | Arcadian Health Plan, Inc. [Member] | WellCare of South Carolina [Member] | County | ||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenues | $9,600 | $8,140.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of members | ' | ' | ' | ' | ' | 56,000 | ' | 104,000 | ' | 4,000 | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,000 | 102,000 |
Assets acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | 23.5 | ' | 17.8 | ' | ' | ' | 11.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments | ' | ' | ' | ' | ' | ' | 5.2 | ' | ' | ' | ' | ' | 37.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premiums receivable, net | ' | ' | ' | ' | ' | ' | 4.4 | ' | 33.9 | ' | ' | ' | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' | ' | 47.7 | ' | 7.1 | ' | 2 | ' | 9.5 | 4.5 | 1.9 | 1 | 1.9 | 1.3 | 1.3 | 0.3 | 0.8 | 38.1 | 4.8 | 1.7 | 8.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 236.8 | 223.8 | 111.1 | ' | 110 | ' | 3 | ' | ' | ' | 12.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | 11.6 | ' | 1.6 | ' | ' | ' | 2.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | 202.4 | ' | 63.4 | ' | ' | ' | 76.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Medical benefits payable | ' | ' | ' | ' | ' | ' | -26.8 | ' | -43.1 | ' | ' | ' | -28.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses and other payables | ' | ' | ' | ' | ' | ' | -5.6 | ' | ' | ' | ' | ' | -0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other payables to government partners | ' | ' | ' | ' | ' | ' | -2.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | -89.8 | -82.2 | ' | ' | -17.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of liabilities assumed | ' | ' | ' | ' | ' | ' | -52.3 | ' | -43.1 | ' | ' | ' | -29.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of net assets acquired | ' | ' | ' | ' | ' | ' | 150.1 | ' | 20.3 | ' | ' | ' | 46.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '13 years 4 months 24 days | '11 years 7 months 6 days | '10 years 9 months 18 days | '10 years 4 months 24 days | '5 years | '4 years | '15 years | '10 years | '15 years | '15 years | '15 years | '15 years | '15 years | '10 years | '10 years | '10 years | ' | ' | ' |
Number of counties of operation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39 | ' | ' |
Number of counties in state | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46 | ' | ' |
Net earnings | $171.80 | $189.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $3.95 | $4.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in dollars per share) | $3.90 | $4.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||||||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Gross margin | $323.10 | $350.90 | $311.50 | $265 | $299.60 | $266.90 | $263 | $266.80 | $1,250.50 | $1,096.30 | $1,150.10 |
FLORIDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenue net of premium tax | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 13.00% | 15.00% |
GEORGIA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenue net of premium tax | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | 20.00% | 24.00% |
Number of renewal options | 2 | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Term of optional renewals | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
KENTUCKY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenue net of premium tax | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 10.00% | 1.00% |
Number of renewal options | 4 | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Initial term of long-term contracts | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Initial term of short-term contracts | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
SEGMENT_REPORTING_Reconciliati
SEGMENT REPORTING - Reconciliation of Net Income Before Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenue | ' | ' | ' | ' | ' | ' | ' | ' | $9,509.10 | $7,400.20 | $6,098.10 |
Medical benefits | ' | ' | ' | ' | ' | ' | ' | ' | 8,258.60 | 6,303.90 | 4,948 |
Gross margin | 323.1 | 350.9 | 311.5 | 265 | 299.6 | 266.9 | 263 | 266.8 | 1,250.50 | 1,096.30 | 1,150.10 |
Investment and other income | ' | ' | ' | ' | ' | ' | ' | ' | 18.8 | 8.8 | 8.7 |
Other expenses | ' | ' | ' | ' | ' | ' | ' | ' | -988.2 | -808.7 | -751.2 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 281.1 | 296.4 | 407.6 |
Medicaid [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,661.20 | 4,471.20 | 3,581.50 |
Medical benefits | ' | ' | ' | ' | ' | ' | ' | ' | 4,927.40 | 3,892 | 2,890.10 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 733.8 | 579.2 | 691.4 |
Medicare Advantage [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenue | ' | ' | ' | ' | ' | ' | ' | ' | 3,071 | 1,936.40 | 1,479.80 |
Medical benefits | ' | ' | ' | ' | ' | ' | ' | ' | 2,659.50 | 1,630.60 | 1,198.80 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 411.5 | 305.8 | 281 |
Prescription Drug Plans [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium revenue | ' | ' | ' | ' | ' | ' | ' | ' | 776.9 | 992.6 | 1,036.80 |
Medical benefits | ' | ' | ' | ' | ' | ' | ' | ' | 671.7 | 781.3 | 859.1 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | $105.20 | $211.30 | $177.70 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted-average common shares outstanding b basic | 43,535,927 | 43,104,216 | 42,817,466 |
Dilutive effect of: | ' | ' | ' |
Unvested restricted stock units, market stock units and performance stock units | 342,346 | 526,030 | 305,622 |
Stock options | 122,290 | 196,039 | 205,668 |
Weighted-average common shares outstanding b diluted | 44,000,563 | 43,826,285 | 43,328,756 |
Anti-dilutive stock options, restricted stock awards and performance equity awards excluded from computation | 79,978 | 57,455 | 63,834 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Auction rate securities | Auction rate securities | Certificates of deposit | Corporate debt and other securities | Corporate debt and other securities | Money market funds | Money market funds | Municipal securities | Municipal securities | Variable rate bond fund | Variable rate bond fund | U.S. government securities | U.S. government securities | External Credit Rating, Investment Grade [Member] | External Credit Rating, Investment Grade [Member] | External Credit Rating, Non Investment Grade [Member] | External Credit Rating, Non Investment Grade [Member] | Minimum [Member] | Maximum [Member] | ||||
Auction rate securities | Auction rate securities | Auction rate securities | Auction rate securities | Auction rate securities | Auction rate securities | |||||||||||||||||
Security | Security | |||||||||||||||||||||
Available-for-sale securities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized Cost | $397,000,000 | $318,400,000 | ' | $34,200,000 | $34,200,000 | $1,600,000 | $104,500,000 | $62,200,000 | $43,400,000 | $9,500,000 | $108,900,000 | $118,800,000 | $84,900,000 | $75,000,000 | $19,500,000 | $18,700,000 | $22,600,000 | ' | $11,600,000 | ' | ' | ' |
Gross Unrealized Gains | 600,000 | 900,000 | ' | 0 | 0 | 0 | 100,000 | 100,000 | 0 | 0 | 0 | 0 | 400,000 | 700,000 | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' |
Gross Unrealized Losses | -2,500,000 | -2,300,000 | ' | -2,400,000 | -2,200,000 | 0 | -100,000 | 0 | 0 | 0 | 0 | -100,000 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Rate setting interval for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 days | '35 days |
Number of Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 1 | ' | ' |
Contractual maturities of available-for-sale securities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities | 395,100,000 | 317,000,000 | ' | 31,800,000 | 32,000,000 | 1,600,000 | 104,500,000 | 62,300,000 | 43,400,000 | 9,500,000 | 108,900,000 | 118,700,000 | 85,300,000 | 75,700,000 | 19,600,000 | 18,800,000 | ' | ' | ' | ' | ' | ' |
Within 1 Year | 314,700,000 | ' | ' | 0 | ' | 1,400,000 | 81,000,000 | ' | 43,400,000 | ' | 99,900,000 | ' | 85,300,000 | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' |
1 Through 5 Years | 48,600,000 | ' | ' | 0 | ' | 200,000 | 23,500,000 | ' | 0 | ' | 9,000,000 | ' | 0 | ' | 15,900,000 | ' | ' | ' | ' | ' | ' | ' |
5 Through 10 Years | 0 | ' | ' | 0 | ' | 0 | 0 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 31,800,000 | ' | ' | 31,800,000 | ' | 0 | 0 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Auction rate securities at par redeemed | 0 | 800,000 | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fixed maturity bond investments sold | $360,200,000 | $378,100,000 | $200,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RESTRICTED_INVESTMENTS_Details
RESTRICTED INVESTMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Restricted investments [Abstract] | ' | ' |
Restricted Investments, Amortized Cost Basis | $82.60 | $67.40 |
Restricted Investments, Gross Unrealized Gains | 0 | 0 |
Restricted Investments, Gross Unrealized Losses | 0.1 | 0 |
Estimated fair value | 82.5 | 67.4 |
Money market funds | ' | ' |
Restricted investments [Abstract] | ' | ' |
Restricted Investments, Amortized Cost Basis | 19 | 18.6 |
Restricted Investments, Gross Unrealized Gains | 0 | 0 |
Restricted Investments, Gross Unrealized Losses | 0 | 0 |
Estimated fair value | 19 | 18.6 |
Cash | ' | ' |
Restricted investments [Abstract] | ' | ' |
Restricted Investments, Amortized Cost Basis | 40.2 | 29.2 |
Restricted Investments, Gross Unrealized Gains | 0 | 0 |
Restricted Investments, Gross Unrealized Losses | 0 | 0 |
Estimated fair value | 40.2 | 29.2 |
Certificates of deposit | ' | ' |
Restricted investments [Abstract] | ' | ' |
Restricted Investments, Amortized Cost Basis | 1.4 | 1.6 |
Restricted Investments, Gross Unrealized Gains | 0 | 0 |
Restricted Investments, Gross Unrealized Losses | 0 | 0 |
Estimated fair value | 1.4 | 1.6 |
U.S. government securities | ' | ' |
Restricted investments [Abstract] | ' | ' |
Restricted Investments, Amortized Cost Basis | 22 | 18 |
Restricted Investments, Gross Unrealized Gains | 0 | 0 |
Restricted Investments, Gross Unrealized Losses | 0.1 | 0 |
Estimated fair value | $21.90 | $18 |
PROPERTY_EQUIPMENT_AND_CAPITAL2
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, equipment and capitalized software, gross | $292.90 | $240.30 | ' |
Less accumulated depreciation | -145.5 | -108.8 | ' |
Total property and equipment, net | 147.4 | 131.5 | ' |
Depreciation expense | 36.7 | 29.2 | 24.9 |
Amortization expense on software | 22 | 15.4 | 11.5 |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, equipment and capitalized software, gross | 22.2 | 20.6 | ' |
Computer equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, equipment and capitalized software, gross | 62.9 | 52.9 | ' |
Capitalized software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, equipment and capitalized software, gross | 185.4 | 147.6 | ' |
Furniture and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, equipment and capitalized software, gross | $22.40 | $19.20 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | $78.30 | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, beginning balance | 223.8 | 111.1 |
Acquisitions | ' | 112.7 |
Acquisitions and acquisition related adjustments | 13 | ' |
Goodwill, ending balance | 236.8 | 223.8 |
Medicaid [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, beginning balance | 111.1 | 111.1 |
Acquisitions | ' | 0 |
Acquisitions and acquisition related adjustments | 15.7 | ' |
Goodwill, ending balance | 126.8 | 111.1 |
Medicare Advantage [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, beginning balance | 112.7 | 0 |
Acquisitions | ' | 112.7 |
Acquisitions and acquisition related adjustments | -2.7 | ' |
Goodwill, ending balance | $110 | $112.70 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted Average Amortization Period (In Years) | '13 years 3 months 18 days | ' | ' |
Gross Carrying Amount | $87.70 | $66.80 | ' |
Accumulated Amortization | -21.2 | -13.8 | ' |
Other intangible assets, net | 66.5 | 53 | ' |
Amortization expense | 7.4 | 2.3 | 1.5 |
Finite-lived intangible assets, future amortization expense [Abstract] | ' | ' | ' |
2014 | 7.3 | ' | ' |
2015 | 7.2 | ' | ' |
2016 | 7.1 | ' | ' |
2017 | 6.3 | ' | ' |
2018 | 5.3 | ' | ' |
2019 and thereafter | 33.3 | ' | ' |
Total | 66.5 | ' | ' |
Provider networks | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted Average Amortization Period (In Years) | '15 years 4 months 24 days | ' | ' |
Gross Carrying Amount | 6.1 | 4 | ' |
Accumulated Amortization | -2.5 | -2.1 | ' |
Other intangible assets, net | 3.6 | 1.9 | ' |
Trademarks | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted Average Amortization Period (In Years) | '13 years 4 months 24 days | ' | ' |
Gross Carrying Amount | 13.3 | 12.1 | ' |
Accumulated Amortization | -8.1 | -6.9 | ' |
Other intangible assets, net | 5.2 | 5.2 | ' |
Licenses and permits | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted Average Amortization Period (In Years) | '15 years | ' | ' |
Gross Carrying Amount | 5.3 | 5.3 | ' |
Accumulated Amortization | -2.9 | -2.5 | ' |
Other intangible assets, net | 2.4 | 2.8 | ' |
State contracts | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted Average Amortization Period (In Years) | '13 years 8 months 12 days | ' | ' |
Gross Carrying Amount | 56.6 | 43.5 | ' |
Accumulated Amortization | -6.4 | -2.3 | ' |
Other intangible assets, net | 50.2 | 41.2 | ' |
Other Intangible Assets [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted Average Amortization Period (In Years) | '6 years 6 months | ' | ' |
Gross Carrying Amount | 6.4 | 1.9 | ' |
Accumulated Amortization | -1.3 | 0 | ' |
Other intangible assets, net | $5.10 | $1.90 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Fair Value Measurements, Recurring [Member] | Software and Software Development Costs [Member] | Software and Software Development Costs [Member] | Senior Notes [Member] | Term Loan [Member] | Minimum [Member] | Maximum [Member] | ||||
Variable Rate Bond Fund [Member] | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | ||||||
Asset-backed Securities [Member] | Asset-backed Securities [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | Certificates of deposit | Certificates of deposit | Corporate debt and other securities | Corporate debt and other securities | Money market funds | Money market funds | Municipal securities | Municipal securities | US Government Securities [Member] | US Government Securities [Member] | Variable Rate Bond Fund [Member] | Cash | Cash | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | Certificates of deposit | Certificates of deposit | Corporate debt and other securities | Corporate debt and other securities | Money market funds | Money market funds | Municipal securities | Municipal securities | US Government Securities [Member] | US Government Securities [Member] | Variable Rate Bond Fund [Member] | Variable Rate Bond Fund [Member] | Cash | Cash | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | Certificates of deposit | Certificates of deposit | Corporate debt and other securities | Corporate debt and other securities | Money market funds | Money market funds | Municipal securities | Municipal securities | US Government Securities [Member] | US Government Securities [Member] | Variable Rate Bond Fund [Member] | Variable Rate Bond Fund [Member] | Cash | Cash | Asset-backed Securities [Member] | Asset-backed Securities [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | Auction Rate Securities [Member] | Certificates of deposit | Certificates of deposit | Corporate debt and other securities | Corporate debt and other securities | Money market funds | Money market funds | Municipal securities | Municipal securities | US Government Securities [Member] | US Government Securities [Member] | Variable Rate Bond Fund [Member] | Variable Rate Bond Fund [Member] | Cash | Cash | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre Determined Intervals At Which Holders Are Allowed To Sell Their Notes And Resets Applicable Interest Rate | 'every seven or 35 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Failed Auction, Value | $34,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Auction rate securities, period for interest rate reset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 days | '35 days |
Auction rate securities, municipal bond index return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 8.50% |
Carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | 135,000,000 | ' | ' |
Total investments | ' | ' | ' | 85,300,000 | 395,100,000 | 317,000,000 | 1,600,000 | 4,500,000 | 31,800,000 | 32,000,000 | 1,600,000 | ' | 102,900,000 | 57,700,000 | 43,400,000 | 9,500,000 | 108,900,000 | 118,800,000 | 19,600,000 | 18,800,000 | 75,700,000 | ' | ' | 148,300,000 | 104,000,000 | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 43,400,000 | 9,500,000 | 0 | 0 | 19,600,000 | 18,800,000 | 85,300,000 | 75,700,000 | ' | ' | 215,000,000 | 176,500,000 | 1,600,000 | 4,500,000 | 0 | 0 | 1,600,000 | ' | 102,900,000 | 57,700,000 | 0 | 0 | 108,900,000 | 118,800,000 | 0 | 0 | 0 | 0 | ' | ' | 31,800,000 | 32,000,000 | 0 | 0 | 31,800,000 | 32,000,000 | ' | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Investment | ' | ' | ' | ' | 82,500,000 | 67,400,000 | ' | ' | ' | ' | 1,400,000 | 1,600,000 | ' | ' | 19,000,000 | 18,600,000 | ' | ' | 21,900,000 | 18,000,000 | ' | 40,200,000 | 29,200,000 | 81,100,000 | 65,800,000 | ' | ' | ' | ' | 0 | 0 | ' | ' | 19,000,000 | 18,600,000 | ' | ' | 21,900,000 | 18,000,000 | ' | ' | 40,200,000 | 29,200,000 | 1,400,000 | 1,600,000 | ' | ' | ' | ' | 1,400,000 | 1,600,000 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Amounts accrued related to investigation resolution | ' | ' | ' | ' | 70,300,000 | 105,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,300,000 | 105,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in net unrealized gains and losses in other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -200,000 | 400,000 | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Auction rate securities at par redeemed | 0 | 800,000 | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' |
Impaired Assets to be Disposed of by Method Other than Sale, Carrying Value of Asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $615,000,000 | $131,800,000 | ' | ' |
FAIR_VALUE_MEASUREMENTS_Unobse
FAIR VALUE MEASUREMENTS - Unobservable Inputs Reconciliation (Details) (Significant Unobservable Inputs (Level 3), Fair Value Measurements, Recurring [Member], Auction Rate Securities [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 |
Significant Unobservable Inputs (Level 3) | Fair Value Measurements, Recurring [Member] | Auction Rate Securities [Member] | ' | ' | ' | ' |
Auction rate securities measured at fair value on a recurring basis using significant unobservable inputs [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $32 | ' | $32.40 | $42.20 |
Realized gains (losses) in earnings | 0 | 0 | 0 | ' |
Changes in net unrealized gains and losses in other comprehensive income | -0.2 | 0.4 | 1.4 | ' |
Purchases, sales and redemptions | 0 | -0.8 | -11.2 | ' |
Net transfers in or (out) of Level 3 | 0 | 0 | 0 | ' |
Balance at end of period | $31.80 | $32 | ' | $42.20 |
MEDICAL_BENEFITS_PAYABLE_Detai
MEDICAL BENEFITS PAYABLE (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 |
Medical benefits payable and expense [Abstract] | ' | ' | ' | ' |
IBNR | $690.10 | $547.40 | ' | ' |
Other medical benefits payable | 263.3 | 185.6 | ' | ' |
Total medical benefits payable | 953.4 | 733 | ' | 743 |
IBNR | 72.00% | 75.00% | ' | ' |
Claims adjudicated, but not yet paid | 28.00% | 25.00% | ' | ' |
Reconciliation of the beginning and ending balance of medical benefits payable [Roll Forward] | ' | ' | ' | ' |
Beginning balance | 733 | ' | 744.8 | 743 |
Acquisitions | 71.6 | 0 | 0 | ' |
Medical benefits incurred related to [Abstract] | ' | ' | ' | ' |
Current period | 8,333.20 | 6,450.50 | 5,200.10 | ' |
Prior period | 74.6 | 146.6 | 252.1 | ' |
Total | 8,258.60 | 6,303.90 | 4,948 | ' |
Medical benefits paid related to [Abstract] | ' | ' | ' | ' |
Current period | -7,490.60 | -5,754.90 | -4,533.90 | ' |
Prior periods | -619.2 | -560.8 | -412.3 | ' |
Total | -8,109.80 | -6,315.70 | -4,946.20 | ' |
Ending balance | 953.4 | 733 | ' | 743 |
Net favorable development, impact on medical expense | 74.6 | 146.6 | 252.1 | ' |
Net favorable development related to prior fiscal years | $3 | $76.70 | $191.20 | ' |
DEBT_Details
DEBT (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 15, 2011 | Dec. 31, 2012 | Sep. 30, 2011 | Feb. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Senior Notes [Member] | Senior Notes [Member] | Term Loan [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Senior Secured Credit Agreement [Member] | Senior Secured Credit Agreement [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan facility, original principal amount | ' | ' | ' | $600 | $600 | $135 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 5.75% | 5.75% | ' | ' | ' | ' | ' | ' | ' |
Debt Issuance Cost | ' | ' | ' | 12.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from debt, net of financing costs paid | 816.4 | -0.6 | 147.5 | ' | 587.9 | ' | ' | ' | ' | ' | ' | ' |
Payments on debt | 365 | 11.3 | 3.8 | ' | ' | 336.5 | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | 75 |
Additional Debt Permitted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' |
Outstanding balance under the Credit Agreement, current portion | 0 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unutilized commitment fee, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' |
Unutilized commitment fee, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' |
Interest expense | 11.9 | 4.1 | 6.5 | ' | ' | ' | ' | 4.3 | ' | ' | ' | ' |
Aggregate par value | ' | ' | ' | ' | ' | ' | ' | ' | 112.5 | ' | ' | ' |
Repurchased notes discount | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Gains (Losses) on Extinguishment of Debt | ($2.80) | $0 | $10.80 | ' | ' | ' | $10.80 | ' | ' | ' | ' | ' |
DEBT_Redemption_of_Debt_Terms_
DEBT Redemption of Debt Terms (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Debt Instrument, Redemption, Period One [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Percent of the aggregate principal amount redeemed | 40.00% |
Redemption price as a percent | 105.75% |
Debt Instrument, Redemption, Period Two [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption price as a percent | 102.88% |
Debt Instrument, Redemption, Period Three [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption price as a percent | 101.44% |
Debt Instrument, Redemption, Period Four [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption price as a percent | 100.00% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 84 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2010 | Aug. 31, 2010 | Mar. 23, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 |
Civil Inquiry [Member] | Civil Inquiry [Member] | Pending Civil Inquiry [Member] | Class Action Complaints [Member] | Corporate Integrity Agreement [Member] | Derivative Lawsuits [Member] | Derivative Lawsuits [Member] | Derivative Lawsuits [Member] | Derivative Lawsuits [Member] | Derivative Lawsuits [Member] | |||||||
Employee | Employee | Action | ||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement agreement, amount | ' | ' | ' | ' | ' | ' | $137.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement Agreement Amount Of Installment Payments | ' | ' | ' | ' | ' | ' | 34.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement | ' | ' | ' | ' | ' | ' | ' | '36 months | ' | ' | '5 years | ' | ' | ' | ' | ' |
Settlement agreement, interest rate | ' | ' | ' | ' | ' | ' | 3.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of settlement liability | ' | ' | ' | ' | ' | ' | ' | ' | 70.3 | ' | ' | ' | ' | ' | ' | ' |
Current portion of amount payable related to investigation resolution | 36.2 | 37.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount payable related to investigation resolution | 34.1 | 68.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement agreement, additional contingent amount | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of sums recovered from former officers to be paid to class members | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' |
Number of former officers being pursued in an action filed by the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | 3 | ' |
Number of former associates being pursued in action filed by entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | 2 | ' |
Number of former employees being pursued in action filed by entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | 5 | ' |
Number of actions filed in the Federal Court | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 |
Legal fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46 | 38.2 | 24 | 155.9 | ' |
Directors and officers insurance recovery [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total insurance proceeds received or expected to be received | ' | ' | ' | ' | ' | 32.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of the insurance policies, recovery sought | ' | ' | ' | ' | ' | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from insurance settlements | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected additional insurance proceeds | ' | ' | ' | ' | 25.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating leases [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expense | 20.4 | 17 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments under non-cancelable operating leases [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2013 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 16.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 11.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 9.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 4.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 and thereafter | 6.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $67.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current [Abstract] | ' | ' | ' | ' |
Federal | ' | $78.60 | $84 | $59.60 |
State | ' | 7.5 | 8.6 | -1.2 |
Total Current | ' | 86.1 | 92.6 | 58.4 |
Deferred [Abstract] | ' | ' | ' | ' |
Federal | ' | 16 | 18.1 | 87 |
State | ' | 0.9 | 1 | 8.8 |
Total Deferred | ' | 16.9 | 19.1 | 95.8 |
Total income tax expense | 7.6 | -103 | -111.7 | -154.2 |
Statutory federal rate | ' | 35.00% | ' | ' |
Reconciliation of income tax at the effective rate to income tax at the statutory federal rate [Abstract] | ' | ' | ' | ' |
Income tax expense at statutory federal rate | ' | 97.4 | 103.7 | 146.5 |
Adjustments resulting from: [Abstract] | ' | ' | ' | ' |
State income tax, net of federal benefit | ' | 5.8 | 6.7 | 8.1 |
Provision-to-return differences | ' | 0 | 0 | -2.3 |
Non-deductible executive compensation | ' | 5.1 | 2.4 | 1.6 |
Non-deductible amounts related to investigation resolution | ' | -6.9 | -1.3 | 0.2 |
Interest on unrecognized tax benefits | ' | 0 | -0.1 | -0.3 |
Other, net | ' | 1.6 | 0.3 | 0.4 |
Total income tax expense | 7.6 | -103 | -111.7 | -154.2 |
Effective income tax rate | ' | 37.00% | 37.70% | 36.90% |
Deferred tax assets [Abstract] | ' | ' | ' | ' |
Medical and other benefits discounting | ' | 11.7 | 12.3 | ' |
Tax basis assets | ' | 10.1 | 8.4 | ' |
Allowance for doubtful accounts | ' | 3.6 | 5.7 | ' |
Amount payable related to investigation resolution | ' | 13.7 | 13.1 | ' |
Accrued expenses and other | ' | 19 | 27.8 | ' |
Total Deferred Assets | ' | 58.1 | 67.3 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' | ' |
Goodwill, other intangible assets and property and equipment | ' | 26 | 28.7 | ' |
Software development costs | ' | 54.9 | 43 | ' |
Prepaid assets | ' | 8.9 | 10.5 | ' |
Total Deferred Liabilities | ' | 89.8 | 82.2 | ' |
Net deferred tax liability | ' | -31.7 | -14.9 | ' |
Current assets | ' | 23.7 | 27.2 | ' |
Non-current liabilities | ' | -55.4 | -42.1 | ' |
Net deferred tax liability | ' | -31.7 | -14.9 | ' |
Reconciliation of the beginning and ending amount of unrecognized tax benefits [Roll Forward] | ' | ' | ' | ' |
Gross unrecognized tax benefits, beginning of period | 0 | 0 | ' | 3.5 |
Gross increases [Abstract] | ' | ' | ' | ' |
Prior year tax positions | ' | 0 | 0 | ' |
Current year tax positions | ' | 0 | 0 | ' |
Gross decreases [Abstract] | ' | ' | ' | ' |
Prior year settlements | ' | 0 | 0 | ' |
Prior year tax positions | ' | 0 | -3.5 | ' |
Statute of limitations lapses | ' | 0 | 0 | ' |
Gross unrecognized tax benefits, end of period | ' | $0 | $0 | ' |
EQUITYBASED_COMPENSATION_Detai
EQUITY-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Compensation expense | $12.50 | $14.90 | $19.50 | |
Unrecognized compensation cost | 17.1 | ' | ' | |
Weighted-average period over which compensation costs are expected to be recognized | '1 year 7 months 0 days | ' | ' | |
Share Price | $70.42 | ' | ' | |
Weighted Average Grant-Date Fair Value [Roll Forward] | ' | ' | ' | |
Granted (USD per share) | $61.33 | $64.19 | $41.66 | |
Stock Options [Member] | ' | ' | ' | |
Stock options [Roll Forward] | ' | ' | ' | |
Outstanding as of beginning of year (in shares) | 435,876 | ' | ' | |
Granted (in shares) | 0 | ' | ' | |
Exercised (in shares) | -395,590 | ' | ' | |
Forfeited and expired | -8,905 | ' | ' | |
Outstanding at end of year (in shares) | 31,381 | [1] | 435,876 | ' |
Weighted average exercise price [Roll Forward] | ' | ' | ' | |
Outstanding as of beginning of year (USD per share) | $26.40 | ' | ' | |
Granted (USD per share) | $0 | ' | ' | |
Exercised (USD per share) | ($26.59) | ' | ' | |
Forfeited and expired (USD per share) | ($5.85) | ' | ' | |
Outstanding at end of year (USD per share) | $29.47 | [1] | $26.40 | ' |
Aggregate intrinsic value [Abstract] | ' | ' | ' | |
Outstanding at end of year | 1.3 | [1] | ' | ' |
Weighted average remaining contractual term [Abstract] | ' | ' | ' | |
Outstanding at end of year | '1 year 3 months 18 days | [1] | ' | ' |
Fair value assumptions [Abstract] | ' | ' | ' | |
Risk-free rates, minimum | ' | ' | 1.14% | |
Risk-free rates, maximum | ' | ' | 2.30% | |
Other Disclosures [Abstract] | ' | ' | ' | |
Total intrinsic value of options exercised | 14.1 | 9.8 | 4.4 | |
Cash received from option exercises | 10.3 | 9.4 | 6.3 | |
Restricted Stock and Restricted Stock Units [Member] | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Total fair value of shares vested | 11.6 | ' | ' | |
Equity Instruments Other than Options [Roll Forward] | ' | ' | ' | |
Outstanding at beginning of period (in shares) | 273,174 | ' | ' | |
Granted (in shares) | 209,481 | ' | ' | |
Vested (in shares) | -145,756 | ' | ' | |
Forfeited and expired (in shares) | 77,063 | ' | ' | |
Outstanding at end of period (in shares) | 259,836 | ' | ' | |
Weighted Average Grant-Date Fair Value [Roll Forward] | ' | ' | ' | |
Outstanding as of beginning of period (USD per share) | $45.90 | ' | ' | |
Granted (USD per share) | $57.45 | ' | ' | |
Vested (USD per share) | $38.71 | ' | ' | |
Forfeited and expired (USD per share) | $54.69 | ' | ' | |
Outstanding at end of period (USD per share) | $56.51 | ' | ' | |
Market Stock Units [Member] | ' | ' | ' | |
Fair value assumptions [Abstract] | ' | ' | ' | |
Risk-free rates, minimum | 0.26% | ' | ' | |
Risk-free rates, maximum | 0.41% | ' | ' | |
Equity Instruments Other than Options [Roll Forward] | ' | ' | ' | |
Outstanding at beginning of period (in shares) | 62,193 | ' | ' | |
Granted (in shares) | 71,469 | ' | ' | |
Vested (in shares) | 0 | ' | ' | |
Forfeited and expired (in shares) | 49,773 | ' | ' | |
Outstanding at end of period (in shares) | 83,889 | ' | ' | |
Weighted Average Grant-Date Fair Value [Roll Forward] | ' | ' | ' | |
Outstanding as of beginning of period (USD per share) | $74.03 | ' | ' | |
Granted (USD per share) | $82.46 | ' | ' | |
Vested (USD per share) | $0 | ' | ' | |
Forfeited and expired (USD per share) | $77.17 | ' | ' | |
Outstanding at end of period (USD per share) | $79.38 | ' | ' | |
Performance Share Awards [Member] | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Unrecognized compensation cost | $6.60 | ' | ' | |
Equity Instruments Other than Options [Roll Forward] | ' | ' | ' | |
Outstanding at beginning of period (in shares) | 421,566 | ' | ' | |
Granted (in shares) | 179,388 | ' | ' | |
Vested (in shares) | -90,347 | ' | ' | |
Forfeited and expired (in shares) | 222,120 | ' | ' | |
Outstanding at end of period (in shares) | 288,487 | ' | ' | |
Weighted Average Grant-Date Fair Value [Roll Forward] | ' | ' | ' | |
Outstanding as of beginning of period (USD per share) | $46.81 | ' | ' | |
Granted (USD per share) | $57.44 | ' | ' | |
Vested (USD per share) | $56.80 | ' | ' | |
Forfeited and expired (USD per share) | $51.63 | ' | ' | |
Outstanding at end of period (USD per share) | $55.30 | ' | ' | |
[1] | All of the Company's outstanding stock options were vested and exercisable as of December 31, 2013. |
RELATEDPARTY_TRANSACTIONS_Deta
RELATED-PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 |
The Graham Companies [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Director's ownership interest in related party | 23.00% | ' |
Expenses from transactions with related party | $0.20 | $0.10 |
WellCare Community Foundation [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contribution expense | ' | $1 |
REGULATORY_CAPITAL_AND_DIVIDEN1
REGULATORY CAPITAL AND DIVIDEND RESTRICTIONS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statutory Accounting Practices [Line Items] | ' | ' | ' |
Minimum percentage of required ACL | 200.00% | ' | ' |
Combined statutory capital and surplus | $1,100 | $926 | ' |
Required surplus | 489 | 383 | ' |
Dividends received from regulated subsidiaries | $147 | $192 | $92 |
Texas [Member] | ' | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' | ' |
Minimum percentage of required ACL | 225.00% | ' | ' |
Ohio [Member] | ' | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' | ' |
Minimum percentage of required ACL | 300.00% | ' | ' |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Matching contribution expense under 401(k) plan | $6 | $4.30 | $3.40 |
Accrual for performance-based cash bonus under the LTIP | $5.20 | $9.70 | ' |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 |
Members | Members | Members | Members | Members | Members | Members | Members | Members | Members | |||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $2,438.80 | $2,500.40 | $2,332.10 | $2,256.60 | $1,988.10 | $1,818.40 | $1,811.10 | $1,791.40 | $9,527.90 | $7,409 | $6,106.80 | ' | ' | ' |
Gross margin | 323.1 | 350.9 | 311.5 | 265 | 299.6 | 266.9 | 263 | 266.8 | 1,250.50 | 1,096.30 | 1,150.10 | ' | ' | ' |
Income before income taxes | 71.4 | 106.8 | 77.2 | 22.9 | 77.4 | 62.4 | 77.3 | 79.3 | 278.3 | 296.4 | 418.4 | ' | ' | ' |
Net income | $42.90 | $64 | $46.90 | $21.50 | $48.80 | $38.30 | $46.40 | $51.20 | $175.30 | $184.70 | $264.20 | ' | ' | ' |
Net income per share - basic (USD per share) | $0.98 | $1.47 | $1.08 | $0.50 | $1.13 | $0.89 | $1.08 | $1.19 | $4.03 | $4.29 | $6.17 | ' | ' | ' |
Net income per share - diluted (USD per share) | $0.97 | $1.45 | $1.07 | $0.49 | $1.11 | $0.87 | $1.06 | $1.18 | $3.98 | $4.22 | $6.10 | ' | ' | ' |
Period end membership (in members) | 2,846,000 | 2,824,000 | 2,842,000 | 2,703,000 | 2,669,000 | ' | ' | ' | 2,846,000 | 2,669,000 | ' | 2,561,000 | 2,562,000 | 2,533,000 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], Missouri Care, Inc. [Member]) | Jan. 01, 2014 |
Regions | |
Subsequent Event [Line Items] | ' |
Number of Regions | 34 |
Medicare Advantage [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of Countries in which Entity Operates | 192 |
Prescription Drug Plans [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of Regions | 11 |
Minimum [Member] | ' |
Subsequent Event [Line Items] | ' |
Number of additional members from acquisition | 40,000 |
Number of States in which Entity Operates | 39 |
Schedule_I_CONDENSED_FINANCIAL1
Schedule I CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Statement of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment and other income | ' | ' | ' | ' | ' | ' | ' | ' | $18.80 | $8.80 | $8.70 |
Total revenues | 2,438.80 | 2,500.40 | 2,332.10 | 2,256.60 | 1,988.10 | 1,818.40 | 1,811.10 | 1,791.40 | 9,527.90 | 7,409 | 6,106.80 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 856.5 | 690.8 | 642.1 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 11.9 | 4.1 | 6.5 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 9,246.80 | 7,112.60 | 5,699.20 |
Loss from operations | ' | ' | ' | ' | ' | ' | ' | ' | 281.1 | 296.4 | 407.6 |
(Loss) gain on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | -2.8 | 0 | 10.8 |
Income before income taxes | 71.4 | 106.8 | 77.2 | 22.9 | 77.4 | 62.4 | 77.3 | 79.3 | 278.3 | 296.4 | 418.4 |
Income tax benefit | ' | ' | ' | 7.6 | ' | ' | ' | ' | -103 | -111.7 | -154.2 |
Net income | 42.9 | 64 | 46.9 | 21.5 | 48.8 | 38.3 | 46.4 | 51.2 | 175.3 | 184.7 | 264.2 |
Other comprehensive income, before tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in net unrealized gains and losses on available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -0.8 | 1.5 | 1 |
Other comprehensive income, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -0.5 | 0.9 | 0.6 |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 174.8 | 185.6 | 264.8 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment and other income | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0.1 | 0.2 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0.1 | 0.2 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 15.2 | 17.4 | 23.4 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 11.8 | 4 | 2.1 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 27 | 21.4 | 25.5 |
Loss from operations | ' | ' | ' | ' | ' | ' | ' | ' | -26.8 | -21.3 | -25.3 |
(Loss) gain on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | -2.8 | 0 | 0 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -29.6 | -21.3 | -25.3 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 8.9 | 5.7 | 7.5 |
Loss before equity in subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -20.7 | -15.6 | -17.8 |
Equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 196 | 200.3 | 282 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 175.3 | 184.7 | 264.2 |
Other comprehensive income, before tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in net unrealized gains and losses on available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -0.8 | 1.5 | 1 |
Income tax expense related to other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | -0.3 | 0.6 | 0.4 |
Other comprehensive income, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -0.5 | 0.9 | 0.6 |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | $174.80 | $185.60 | $264.80 |
Schedule_I_CONDENSED_FINANCIAL2
Schedule I CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 |
Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $1,482,500,000 | $1,100,500,000 | $1,325,100,000 | $1,359,600,000 | $271,300,000 | $3,700,000 | $72,400,000 | $10,100,000 |
Investments | 314,700,000 | 220,300,000 | ' | ' | 2,300,000 | 2,300,000 | ' | ' |
Taxes receivable | 7,100,000 | 15,600,000 | ' | ' | 2,600,000 | 9,500,000 | ' | ' |
Deferred income tax asset | 23,700,000 | 27,200,000 | ' | ' | 0 | 100,000 | ' | ' |
Affiliate receivables and other current assets | ' | ' | ' | ' | 364,700,000 | 217,000,000 | ' | ' |
Total current assets | 2,692,700,000 | 2,100,700,000 | ' | ' | 640,900,000 | 232,600,000 | ' | ' |
Deferred tax asset | ' | ' | ' | ' | 7,900,000 | 11,800,000 | ' | ' |
Investment in subsidiaries | ' | ' | ' | ' | 1,465,100,000 | 1,269,700,000 | ' | ' |
Deposits and other assets | ' | ' | ' | ' | 10,100,000 | 1,500,000 | ' | ' |
Total Assets | 3,450,700,000 | 2,675,500,000 | ' | ' | 2,124,000,000 | 1,515,600,000 | ' | ' |
Current portion of long-term debt | 0 | 15,000,000 | ' | ' | 0 | 15,000,000 | ' | ' |
Other current liabilities | 187,700,000 | 221,100,000 | ' | ' | 6,100,000 | 57,500,000 | ' | ' |
Total current liabilities | 1,237,100,000 | 1,113,400,000 | ' | ' | 6,100,000 | 72,500,000 | ' | ' |
Long-term debt | 600,000,000 | 120,000,000 | ' | ' | 600,000,000 | 120,000,000 | ' | ' |
Total liabilities | 1,932,800,000 | 1,352,400,000 | ' | ' | 606,100,000 | 192,500,000 | ' | ' |
Commitments and contingencies (see Note 13) | 0 | 0 | ' | ' | ' | ' | ' | ' |
Preferred stock, $0.01 par value (20,000,000 authorized, no shares issued or outstanding) | 0 | 0 | ' | ' | 0 | 0 | ' | ' |
Common stock, $0.01 par value (100,000,000 authorized, 43,766,645 and 43,212,375 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively) | 400,000 | 400,000 | ' | ' | 400,000 | 400,000 | ' | ' |
Paid-in capital | 489,400,000 | 469,400,000 | ' | ' | 489,400,000 | 469,400,000 | ' | ' |
Retained earnings | 1,029,400,000 | 854,100,000 | ' | ' | 1,029,400,000 | 854,100,000 | ' | ' |
Accumulated other comprehensive loss | -1,300,000 | -800,000 | ' | ' | -1,300,000 | -800,000 | ' | ' |
Total stockholders' equity | 1,517,900,000 | 1,323,100,000 | 1,116,900,000 | 832,100,000 | 1,517,900,000 | 1,323,100,000 | ' | ' |
Total Liabilities and Stockholders' Equity | $3,450,700,000 | $2,675,500,000 | ' | ' | $2,124,000,000 | $1,515,600,000 | ' | ' |
Schedule_I_CONDENSED_FINANCIAL3
Schedule I CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Balance Sheets (Parenthetical) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 43,766,645 | 43,212,375 |
Common stock, outstanding (in shares) | 43,766,645 | 43,212,375 |
Parent Company [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 43,212,375 | 42,848,798 |
Common stock, outstanding (in shares) | ' | 42,848,798 |
Schedule_I_CONDENSED_FINANCIAL4
Schedule I CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash (used in) provided by operating activities | $178.90 | ($30.70) | $162 |
Net proceeds (payments) from purchases and sales and maturities of investments | 375.8 | 436.8 | 277.5 |
Net cash used in investing activities | -290.5 | -222.8 | -111.6 |
Proceeds from debt, net of payment of issuance costs | 816.4 | -0.6 | 147.5 |
Proceeds from options exercised and other, net | 10.3 | 9.4 | 6.3 |
Repurchase and retirement of shares to satisfy tax withholding requirements | -4.1 | -6.5 | -3.7 |
Incremental tax benefit from option exercises | 3.6 | 3.8 | 2.8 |
Net cash provided by (used in) financing activities | 493.6 | 28.9 | -84.9 |
Increase (decrease) in cash and cash equivalents | 382 | -224.6 | -34.5 |
Balance at beginning of period | 1,100.50 | 1,325.10 | 1,359.60 |
Balance at end of period | 1,482.50 | 1,100.50 | 1,325.10 |
Parent Company [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net cash (used in) provided by operating activities | 204.9 | -23.3 | 8.5 |
Net proceeds (payments) from purchases and sales and maturities of investments | 0 | 0.9 | 0 |
Payments to subsidiaries, net | -398.5 | -41.1 | -95.9 |
Net cash used in investing activities | -398.5 | -40.2 | -95.9 |
Proceeds from debt, net of payment of issuance costs | 816.4 | -0.6 | 148 |
Payments on debt | -365 | -11.3 | -3.7 |
Proceeds from options exercised and other, net | 10.3 | 9.4 | 6.3 |
Repurchase and retirement of shares to satisfy tax withholding requirements | -4.1 | -6.5 | -3.7 |
Incremental tax benefit from option exercises | 3.6 | 3.8 | 2.8 |
Net cash provided by (used in) financing activities | 461.2 | -5.2 | 149.7 |
Increase (decrease) in cash and cash equivalents | 267.6 | -68.7 | 62.3 |
Balance at beginning of period | 3.7 | ' | 72.4 |
Balance at end of period | $271.30 | $3.70 | ' |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 |
Allowance for uncollectible accounts [Roll Forward] | ' | ' | ' | ' |
Balance at Beginning of Period | $16,300 | ' | $15,700 | $18,500 |
Charged to costs and expenses | 10,600 | 16,600 | 11,100 | ' |
Deduction | 9,700 | 16,000 | 13,900 | ' |
Balance at End of Period | 17,200 | 16,300 | ' | 18,500 |
Premiums receivable [Member] | ' | ' | ' | ' |
Allowance for uncollectible accounts [Roll Forward] | ' | ' | ' | ' |
Balance at Beginning of Period | 14,800 | ' | 10,400 | 16,100 |
Charged to costs and expenses | 10,700 | 14,800 | 7,100 | ' |
Deduction | 9,700 | 10,400 | 12,800 | ' |
Balance at End of Period | 15,800 | 14,800 | ' | 16,100 |
Receivables for non-member claims paid [Member] | ' | ' | ' | ' |
Allowance for uncollectible accounts [Roll Forward] | ' | ' | ' | ' |
Balance at Beginning of Period | 0 | ' | 4,000 | 1,100 |
Charged to costs and expenses | 0 | 1,600 | 4,000 | ' |
Deduction | 0 | 5,600 | 1,100 | ' |
Balance at End of Period | 0 | 0 | ' | 1,100 |
Medical Advances [Member] | ' | ' | ' | ' |
Allowance for uncollectible accounts [Roll Forward] | ' | ' | ' | ' |
Balance at Beginning of Period | 1,500 | ' | 1,300 | 1,300 |
Charged to costs and expenses | -100 | 200 | 0 | ' |
Deduction | 0 | 0 | 0 | ' |
Balance at End of Period | $1,400 | $1,500 | ' | $1,300 |