Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 04, 2013 | Dec. 31, 2012 | |
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'Health Net Inc | ' | ' |
Entity Central Index Key | '0000916085 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 79,508,757 | ' |
Treasury Stock, Shares | 70,696,000 | 70,698,207 | 67,426,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Health plan services premiums | $2,606,754 | $2,578,689 | $7,817,697 | $7,818,565 |
Government contracts | 149,342 | 169,811 | 423,796 | 527,421 |
Net investment income | 11,276 | 16,355 | 57,970 | 63,356 |
Administrative services fees and other income | 7,659 | 1,854 | 11,036 | 16,300 |
Divested operations and services revenue | 0 | 12,863 | 0 | 25,668 |
Total revenues | 2,775,031 | 2,779,572 | 8,310,499 | 8,451,310 |
Expenses | ' | ' | ' | ' |
Health plan services (excluding depreciation and amortization) | 2,196,561 | 2,281,388 | 6,657,215 | 6,983,502 |
Government contracts | 125,334 | 151,815 | 378,209 | 467,531 |
General and administrative | 267,683 | 222,425 | 804,355 | 688,457 |
Selling | 59,498 | 61,053 | 175,828 | 181,004 |
Depreciation and amortization | 9,402 | 7,907 | 28,355 | 22,722 |
Interest | 7,973 | 8,021 | 24,626 | 24,895 |
Divested operations and services expenses | 0 | 17,587 | 0 | 59,973 |
Total expenses | 2,666,451 | 2,750,196 | 8,068,588 | 8,428,084 |
Income from continuing operations before income taxes | 108,580 | 29,376 | 241,911 | 23,226 |
Income tax provision | 41,740 | 8,898 | 91,538 | 5,712 |
Income from continuing operations | 66,840 | 20,478 | 150,373 | 17,514 |
Discontinued operations: | ' | ' | ' | ' |
Loss from discontinued operation, net of tax | 0 | 0 | 0 | -18,452 |
(Adjustment to) gain on sale of discontinued operation, net of tax | 0 | -2,450 | 0 | 116,990 |
(Loss) income on discontinued operation, net of tax | 0 | -2,450 | 0 | 98,538 |
Net income | $66,840 | $18,028 | $150,373 | $116,052 |
Net income per share—basic: | ' | ' | ' | ' |
Income from continuing operations | $0.84 | $0.25 | $1.89 | $0.21 |
(Loss) income on discontinued operation, net of tax | $0 | ($0.03) | $0 | $1.20 |
Net income per share—basic | $0.84 | $0.22 | $1.89 | $1.41 |
Net income per share—diluted: | ' | ' | ' | ' |
Income from continuing operations | $0.83 | $0.25 | $1.87 | $0.21 |
(Loss) income on discontinued operation, net of tax | $0 | ($0.03) | $0 | $1.18 |
Net income per share—diluted | $0.83 | $0.22 | $1.87 | $1.39 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 79,432 | 81,607 | 79,436 | 82,451 |
Diluted | 80,441 | 82,039 | 80,339 | 83,447 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income (loss) | $66,840 | $18,028 | $150,373 | $116,052 |
Unrealized gains (losses) on investments available-for-sale: | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period | 1,074 | 36,554 | -73,779 | 64,126 |
Less: Reclassification adjustments for gains included in earnings | -370 | -4,272 | -23,306 | -29,661 |
Unrealized gains (losses) on investments available-for-sale, net | 704 | 32,282 | -97,085 | 34,465 |
Defined benefit pension plans: | ' | ' | ' | ' |
Prior service cost arising during the period | 0 | 0 | 0 | 0 |
Net loss arising during the period | 0 | 0 | 0 | 0 |
Less: Amortization of prior service cost and net loss included in net periodic pension cost | 643 | 1,038 | 1,929 | 3,114 |
Defined benefit pension plans, net | 643 | 1,038 | 1,929 | 3,114 |
Other comprehensive income (loss) before tax | 1,347 | 33,320 | -95,156 | 37,579 |
Income tax expense (benefit) related to components of other comprehensive income | 433 | 13,065 | -33,477 | 26,280 |
Other comprehensive income (loss), net of tax | 914 | 20,255 | -61,679 | 11,299 |
Comprehensive income | $67,754 | $38,283 | $88,694 | $127,351 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $686,139 | $340,110 |
Investments-available-for-sale (amortized cost: 2013-$1,611,091, 2012-$1,753,931) | 1,580,032 | 1,812,512 |
Premiums receivable, net of allowance for doubtful accounts (2013-$763, 2012-$668) | 343,502 | 373,269 |
Amounts receivable under government contracts | 194,820 | 228,316 |
Other receivables | 69,885 | 113,875 |
Deferred taxes | 78,257 | 51,086 |
Other assets | 103,685 | 130,796 |
Total current assets | 3,056,320 | 3,049,964 |
Property and equipment, net | 195,954 | 183,793 |
Goodwill | 565,886 | 565,886 |
Other intangible assets, net | 14,699 | 17,271 |
Deferred taxes | 3,394 | 13,583 |
Investments-available-for-sale-noncurrent (amortized cost: 2013-$60,080, 2012-$0) | 52,637 | 0 |
Other noncurrent assets | 152,611 | 103,893 |
Total Assets | 4,041,501 | 3,934,390 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ' | ' |
Reserves for claims and other settlements | 990,195 | 1,037,973 |
Health care and other costs payable under government contracts | 55,532 | 75,649 |
Unearned premiums | 129,081 | 151,048 |
Accounts payable and other liabilities | 544,704 | 373,426 |
Total current liabilities | 1,719,512 | 1,638,096 |
Senior notes payable | 399,248 | 399,095 |
Borrowings under revolving credit facility | 100,000 | 100,000 |
Deferred taxes | 1,746 | 0 |
Other noncurrent liabilities | 220,404 | 240,169 |
Total Liabilities | 2,440,910 | 2,377,360 |
Commitments and contingencies | ' | ' |
Stockholders’ Equity: | ' | ' |
Preferred stock ($0.001 par value, 10,000 shares authorized, none issued and outstanding) | 0 | 0 |
Common stock ($0.001 par value, 350,000 shares authorized; issued 2013-150,193 shares; 2012-148,727 shares ) | 150 | 149 |
Additional paid-in capital | 1,370,744 | 1,329,000 |
Treasury common stock, at cost (2013-70,696 shares of common stock; 2012-67,426 shares of common stock) | -2,179,503 | -2,092,625 |
Retained earnings | 2,443,895 | 2,293,522 |
Accumulated other comprehensive income | -34,695 | 26,984 |
Total Stockholders’ Equity | 1,600,591 | 1,557,030 |
Total Liabilities and Stockholders’ Equity | $4,041,501 | $3,934,390 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Premiums receivable, allowance for doubtful accounts | $763 | $668 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 150,193,000 | 148,727,000 |
Treasury stock, shares | 70,696,000 | 67,426,000 |
Current [Member] | ' | ' |
Investments available for sale, amortized cost | 1,611,091 | 1,753,931 |
Noncurrent [Member] | ' | ' |
Investments available for sale, amortized cost | $60,080 | $0 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Common Stock Held In Treasury [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $1,443,146 | $147 | $1,278,037 | ($2,023,129) | $2,171,459 | $16,632 |
Balance, shares at Dec. 31, 2011 | ' | 146,804,000 | ' | -64,847,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income (loss) | 116,052 | ' | ' | ' | 116,052 | ' |
Other comprehensive income (loss) | 11,299 | ' | ' | ' | ' | 11,299 |
Exercise of stock options and vesting of restricted stock units | 16,589 | 2 | 16,587 | ' | ' | ' |
Exercise of stock options and vesting of restricted stock units, shares | ' | 1,885,000 | ' | ' | ' | ' |
Share-based compensation expense | 23,413 | ' | 23,413 | ' | ' | ' |
Tax benefit (detriment) related to equity compensation plans | 5,113 | ' | 5,113 | ' | ' | ' |
Repurchases of common stock | -69,330 | ' | ' | -69,330 | ' | ' |
Repurchases of common stock, shares | ' | ' | ' | -2,572,000 | ' | ' |
Balance at Sep. 30, 2012 | 1,546,282 | 149 | 1,323,150 | -2,092,459 | 2,287,511 | 27,931 |
Balance, shares at Sep. 30, 2012 | ' | 148,689,000 | ' | -67,419,000 | ' | ' |
Balance at Dec. 31, 2012 | 1,557,030 | 149 | 1,329,000 | -2,092,625 | 2,293,522 | 26,984 |
Balance, shares at Dec. 31, 2012 | ' | 148,727,000 | ' | -67,426,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income (loss) | 150,373 | ' | ' | ' | 150,373 | ' |
Other comprehensive income (loss) | -61,679 | ' | ' | ' | ' | -61,679 |
Exercise of stock options and vesting of restricted stock units | 19,951 | 1 | 19,950 | ' | ' | ' |
Exercise of stock options and vesting of restricted stock units, shares | ' | 1,466,000 | ' | ' | ' | ' |
Share-based compensation expense | 23,388 | ' | 23,388 | ' | ' | ' |
Tax benefit (detriment) related to equity compensation plans | -1,594 | ' | -1,594 | ' | ' | ' |
Repurchases of common stock | -86,878 | ' | ' | -86,878 | ' | ' |
Repurchases of common stock, shares | ' | ' | ' | -3,270,000 | ' | ' |
Balance at Sep. 30, 2013 | $1,600,591 | $150 | $1,370,744 | ($2,179,503) | $2,443,895 | ($34,695) |
Balance, shares at Sep. 30, 2013 | ' | 150,193,000 | ' | -70,696,000 | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $150,373 | $116,052 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Amortization and depreciation | 28,355 | 22,722 |
Gain on sale of discontinued operation | 0 | 116,990 |
Share-based compensation expense | 23,388 | 23,413 |
Deferred income taxes | 18,321 | 24,883 |
Excess tax benefit on share-based compensation | -451 | -6,059 |
Net realized (gain) loss on investments | -23,306 | -29,661 |
Other changes | 23,564 | 6,832 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ' | ' |
Premiums receivable and unearned premiums | 7,800 | -173,387 |
Other current assets, receivables and noncurrent assets | 25,953 | -78,203 |
Amounts receivable/payable under government contracts | 31,064 | 3,218 |
Reserves for claims and other settlements | -47,778 | 113,985 |
Accounts payable and other liabilities | -69,558 | 47,765 |
Net cash provided by (used in) operating activities | 167,725 | -45,430 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Sales of investments | 653,786 | 1,132,836 |
Maturities of investments | 72,810 | 97,815 |
Purchases of investments | -652,044 | -1,283,227 |
Purchases of property and equipment | -42,596 | -55,030 |
Net cash received from sale of business | 0 | 248,238 |
(Purchases) sales of restricted investments and other | -4,697 | 6,024 |
Net cash provided by investing activities | 27,259 | 146,656 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options and employee stock purchases | 10,642 | 16,589 |
Excess tax benefit on share-based compensation | 451 | 6,059 |
Repurchases of common stock | -77,569 | -69,330 |
Borrowings under financing arrangements | 323,000 | 110,000 |
Repayment of borrowings under financing arrangements | -323,000 | -122,500 |
Net increase (decrease) in checks outstanding, net of deposits | -23,842 | 34 |
Customer funds administered | 241,363 | 40,248 |
Net cash provided by (used in) financing activities | 151,045 | -18,900 |
Net increase in cash and cash equivalents | 346,029 | 82,326 |
Cash and cash equivalents, beginning of period | 340,110 | 230,253 |
Cash and cash equivalents, end of period | 686,139 | 312,579 |
SUPPLEMENTAL CASH FLOWS DISCLOSURE: | ' | ' |
Interest paid | 16,741 | 16,990 |
Income taxes paid | $46,031 | $5,058 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | |
Health Net, Inc. prepared the accompanying unaudited consolidated financial statements following the rules and regulations of the Securities and Exchange Commission ("SEC") for interim reporting. In this Quarterly Report on Form 10-Q, unless the context otherwise requires, the terms “Company,” “Health Net,” “we,” “us,” and “our” refer to Health Net, Inc. and its subsidiaries. As permitted under those rules and regulations, certain notes or other financial information that are normally required by accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted if they substantially duplicate the disclosures contained in the annual audited financial statements. The accompanying unaudited consolidated financial statements should be read together with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2012 ("Form 10-K"). | |
We are responsible for the accompanying unaudited consolidated financial statements. These consolidated financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our financial position and operating results in accordance with GAAP. In accordance with GAAP, we make certain estimates and assumptions that affect the reported amounts. Actual results could differ from those estimates and assumptions. In addition, revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be indicative of those for the full year. | |
Subsequent to the issuance of the Company’s 2012 quarterly financial statements for the three and nine months ended September 30, 2012, we determined that inter-governmental pass-through funds ("IGT") received during the three months ended September 30, 2012, were incorrectly classified as operating cash flows in the consolidated statements of cash flows. Generally, IGTs are funds that we receive as intermediaries from government entities, which we subsequently distribute to other third party government entities. As a result, the consolidated statement of cash flows has been restated from the amounts previously reported to reclassify $44.6 million of IGT funds received from operating activities in the consolidated statements of cash flows for the nine months ended September 30, 2012 to cash flows from financing activities. We believe the effects of the restatement are immaterial. | |
On April 1, 2012, we completed the sale of the business operations of our Medicare stand-alone Prescription Drug Plan business ("Medicare PDP business") to Pennsylvania Life Insurance Company, a subsidiary of CVS Caremark Corporation ("CVS Caremark"). As a result of the sale, the operating results of our Medicare PDP business have been classified as discontinued operations in our consolidated statements of operations for the nine months ended September 30, 2012. See Note 3 for more information on the sale of our Medicare PDP business. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. We had no checks outstanding, net of deposits as of September 30, 2013 and $23.8 million as of December 31, 2012. Checks outstanding, net of deposits are classified as accounts payable and other liabilities in the consolidated balance sheets and the changes are reflected in the line item net increase (decrease) in checks outstanding, net of deposits within the cash flows from financing activities in the consolidated statements of cash flows. | |||||||||||||||||
Investments | |||||||||||||||||
Investments classified as available-for-sale, which consist primarily of debt securities, are stated at fair value. Unrealized gains and losses are excluded from earnings and reported as other comprehensive income, net of income tax effects. The cost of investments sold is determined in accordance with the specific identification method and realized gains and losses are included in net investment income. We analyze all debt investments that have unrealized losses for impairment consideration and assess the intent to sell such securities. If such intent exists, impaired securities are considered other-than-temporarily impaired. Management also assesses if we may be required to sell the debt investments prior to the recovery of amortized cost, which may also trigger an impairment charge. If securities are considered other-than-temporarily impaired based on intent or ability, we assess whether the amortized costs of the securities can be recovered. If management anticipates recovering an amount less than the amortized cost of the securities, an impairment charge is calculated based on the expected discounted cash flows of the securities. Any deficit between the amortized cost and the expected cash flows is recorded through earnings as a charge. All other temporary impairment changes are recorded through other comprehensive income. During the three and nine months ended September 30, 2013 and 2012, respectively, no losses were recognized from other-than-temporary impairments. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The estimated fair value amounts of cash equivalents, investments available-for-sale, premiums and other receivables, notes receivable and notes payable have been determined by using available market information and appropriate valuation methodologies. The carrying amounts of cash equivalents approximate fair value due to the short maturity of those instruments. Fair values for debt and equity securities are generally based upon quoted market prices. Where quoted market prices were not readily available, fair values were estimated using valuation methodologies based on available and observable market information. Such valuation methodologies include reviewing the value ascribed to the most recent financing, comparing the security with securities of publicly traded companies in a similar line of business, and reviewing the underlying financial performance including estimating discounted cash flows. The carrying value of premiums and other receivables, long-term notes receivable and nonmarketable securities approximates the fair value of such financial instruments. The fair value of notes payable is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt with the same remaining maturities. The fair value of our fixed-rate borrowings was $428.0 million and $424.0 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, the fair value of our variable-rate borrowings under our revolving credit facility was $100.0 million and $100.0 million, respectively. The fair value of our fixed-rate borrowings was determined using the quoted market price, which is a Level 1 input in the fair value hierarchy. The fair value of our variable-rate borrowings was estimated to equal the carrying value because the interest rates paid on these borrowings were based on prevailing market rates. Since the pricing inputs are other than quoted prices and fair value is determined using an income approach, our variable-rate borrowings are classified as a Level 2 in the fair value hierarchy. See Notes 7 and 8 for additional information regarding our financing arrangements and fair value measurements, respectively. | |||||||||||||||||
Health Plan Services Health Care Cost | |||||||||||||||||
The cost of health care services is recognized in the period in which services are provided and includes an estimate of the cost of services that have been incurred but not yet reported. Such costs include payments to primary care physicians, specialists, hospitals and outpatient care facilities, and the costs associated with managing the extent of such care. | |||||||||||||||||
Our health care cost can also include from time to time remediation of certain claims as a result of periodic reviews by various regulatory agencies. We estimate the amount of the provision for health care service costs incurred but not yet reported ("IBNR") in accordance with GAAP and using standard actuarial developmental methodologies based upon historical data including the period between the date services are rendered and the date claims are received and paid, denied claim activity, expected medical cost inflation, seasonality patterns and changes in membership, among other things. | |||||||||||||||||
Our IBNR best estimate also includes a provision for adverse deviation, which is an estimate for known environmental factors that are reasonably likely to affect the required level of IBNR reserves. This provision for adverse deviation is intended to capture the potential adverse development from known environmental factors such as our entry into new geographical markets, changes in our geographic or product mix, the introduction of new customer populations, variation in benefit utilization, disease outbreaks, changes in provider reimbursement, fluctuations in medical cost trend, variation in claim submission patterns and variation in claims processing speed and payment patterns, changes in technology that provide faster access to claims data or change the speed of adjudication and settlement of claims, variability in claim inventory levels, non-standard claim development, and/or exceptional situations that require judgmental adjustments in setting the reserves for claims. | |||||||||||||||||
We consistently apply our IBNR estimation methodology from period to period. Our IBNR best estimate is made on an accrual basis and adjusted in future periods as required. Any adjustments to the prior period estimates are included in the current period. As additional information becomes known to us, we adjust our assumptions accordingly to change our estimate of IBNR. Therefore, if moderately adverse conditions do not occur, evidenced by more complete claims information in the following period, then our prior period estimates will be revised downward, resulting in favorable development. However, any favorable prior period reserve development would increase current period net income only to the extent that the current period provision for adverse deviation is less than the benefit recognized from the prior period favorable development. If moderately adverse conditions occur and are more acute than we estimated, then our prior period estimates will be revised upward, resulting in unfavorable development, which would decrease current period net income. For the nine months ended September 30, 2013, we had $55.9 million in favorable reserve developments related to prior years. We believe this favorable development was primarily due to the absence of moderately adverse conditions. As part of our best estimate for IBNR, the provision for adverse deviation recorded as of September 30, 2013 was $52.9 million. The reserve developments related to prior years for the nine months ended September 30, 2013, when considered together with the provision for adverse deviation recorded as of September 30, 2013, did not have a material impact on our operating results or financial condition. For the nine months ended September 30, 2012, we had $32.8 million in unfavorable reserve developments related to prior years. We believe this unfavorable reserve development for the nine months ended September 30, 2012 was primarily due to significant delays in claims submissions for the fourth quarter of 2011 arising from issues related to a new billing format required by the Health Insurance Portability and Accountability Act of 1996 ("HIPAA") coupled with an unanticipated flattening of commercial trends. | |||||||||||||||||
The majority of the IBNR reserve balance held at each quarter-end is associated with the most recent months' incurred services because these are the services for which the fewest claims have been paid. The degree of uncertainty in the estimates of incurred claims is greater for the most recent months' incurred services. Revised estimates for prior periods are determined in each quarter based on the most recent updates of paid claims for prior periods. Estimates for service costs incurred but not yet reported are subject to the impact of changes in the regulatory environment, economic conditions, changes in claims trends, and numerous other factors. Given the inherent variability of such estimates, the actual liability could differ significantly from the amounts estimated. | |||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, investments and premiums receivable. All cash equivalents and investments are managed within established guidelines, which provide us diversity among issuers. Concentrations of credit risk with respect to premiums receivable are limited due to the large number of payers comprising our customer base. The federal government is the primary customer of our Government Contracts reportable segment with fees and premiums associated with this customer accounting for approximately 95% of our Government Contracts revenue. In addition, the federal government is a significant customer of our Western Region Operations reportable segment as a result of our contract with Centers for Medicare & Medicaid Services ("CMS") for coverage of Medicare-eligible individuals. Furthermore, all of our Medicaid revenue is currently derived from our participation in the state Medicaid program in California ("Medi-Cal") through our relationship with the State of California Department of Health Care Services ("DHCS"). As a result, DHCS is a significant customer of our Western Region Operations reportable segment. | |||||||||||||||||
Comprehensive Income | |||||||||||||||||
Comprehensive income includes all changes in stockholders’ equity (except those arising from transactions with stockholders) and includes net income (loss), net unrealized appreciation (depreciation) after tax on investments available-for-sale and prior service cost and net loss related to our defined benefit pension plan. | |||||||||||||||||
Our accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||
Unrealized Gains (Losses) on investments available-for-sale | Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (loss) | |||||||||||||||
Three Months Ended September 30: | (Dollars in millions) | ||||||||||||||||
Balance as of July 1, 2012 | $ | 19.6 | $ | (11.9 | ) | $ | 7.7 | ||||||||||
Other comprehensive income before reclassifications | 22.4 | — | 22.4 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2.8 | ) | 0.6 | (2.2 | ) | ||||||||||||
Other comprehensive income for the three months ended September 30, 2012 | 19.6 | 0.6 | 20.2 | ||||||||||||||
Balance as of September 30, 2012 | $ | 39.2 | $ | (11.3 | ) | $ | 27.9 | ||||||||||
Balance as of July 1, 2013 | $ | (25.4 | ) | $ | (10.2 | ) | $ | (35.6 | ) | ||||||||
Other comprehensive income before reclassifications | 0.7 | — | 0.7 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (0.2 | ) | 0.4 | 0.2 | |||||||||||||
Other comprehensive income for the three months ended September 30, 2013 | 0.5 | 0.4 | 0.9 | ||||||||||||||
Balance as of September 30, 2013 | $ | (24.9 | ) | $ | (9.8 | ) | $ | (34.7 | ) | ||||||||
Nine Months Ended September 30: | |||||||||||||||||
Balance as of January 1, 2012 | $ | 29.8 | $ | (13.2 | ) | $ | 16.6 | ||||||||||
Other comprehensive income before reclassifications | 28.7 | — | 28.7 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (19.3 | ) | 1.9 | (17.4 | ) | ||||||||||||
Other comprehensive income for the nine months ended September 30, 2012 | 9.4 | 1.9 | 11.3 | ||||||||||||||
Balance as of September 30, 2012 | $ | 39.2 | $ | (11.3 | ) | $ | 27.9 | ||||||||||
Balance as of January 1, 2013 | $ | 38 | $ | (11.0 | ) | $ | 27 | ||||||||||
Other comprehensive loss before reclassifications | (47.8 | ) | — | (47.8 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (15.1 | ) | 1.2 | (13.9 | ) | ||||||||||||
Other comprehensive (loss) income for the nine months ended September 30, 2013 | (62.9 | ) | 1.2 | (61.7 | ) | ||||||||||||
Balance as of September 30, 2013 | $ | (24.9 | ) | $ | (9.8 | ) | $ | (34.7 | ) | ||||||||
The following table shows reclassifications out of accumulated other comprehensive income and the affected line items in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Affected line item in the Consolidated Statements of Operations | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Unrealized gains on investments available-for-sale | $ | 0.3 | $ | 4.3 | $ | 23.3 | $ | 29.7 | Net investment income | ||||||||
0.3 | 4.3 | 23.3 | 29.7 | Total before tax | |||||||||||||
0.1 | 1.5 | 8.2 | 10.4 | Tax expense | |||||||||||||
0.2 | 2.8 | 15.1 | 19.3 | Net of tax | |||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
Prior-service cost | (0.1 | ) | — | (0.1 | ) | (0.1 | ) | (a) | |||||||||
Actuarial gains (losses) | (0.6 | ) | (1.0 | ) | (1.9 | ) | (3.0 | ) | (a) | ||||||||
(0.7 | ) | (1.0 | ) | (2.0 | ) | (3.1 | ) | Total before tax | |||||||||
(0.3 | ) | (0.4 | ) | (0.8 | ) | (1.2 | ) | Tax benefit | |||||||||
(0.4 | ) | (0.6 | ) | (1.2 | ) | (1.9 | ) | Net of tax | |||||||||
Total reclassifications for the period | $ | (0.2 | ) | $ | 2.2 | $ | 13.9 | $ | 17.4 | Net of tax | |||||||
_________ | |||||||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic earnings per share excludes dilution and reflects net income divided by the weighted average shares of common stock outstanding during the periods presented. Diluted earnings per share is based upon the weighted average shares of common stock and dilutive common stock equivalents (this reflects the potential dilution that could occur if stock options were exercised and restricted stock units ("RSUs") and performance share units ("PSUs") were vested) outstanding during the periods presented. | |||||||||||||||||
The inclusion or exclusion of common stock equivalents arising from stock options, RSUs and PSUs in the computation of diluted earnings per share is determined using the treasury stock method. For the three and nine months ended September 30, 2013, respectively, 1,009,000 shares and 903,000 shares of dilutive common stock equivalents were outstanding and were included in the computation of diluted earnings per share. For the three and nine months ended September 30, 2012, respectively, 432,000 shares and 996,000 shares of dilutive common stock equivalents were outstanding and were included in the computation of diluted earnings per share. | |||||||||||||||||
For the three and nine months ended September 30, 2013, respectively, an aggregate of 812,000 shares and 1,019,000 shares of common stock equivalents were considered anti-dilutive and were not included in the computation of diluted earnings per share. For the three and nine months ended September 30, 2012, respectively, an aggregate of 4,342,000 shares and 1,819,000 shares of common stock equivalents were considered anti-dilutive and were not included in the computation of diluted earnings per share. Stock options expire at various times through February 2019. | |||||||||||||||||
In May 2011, our Board of Directors authorized a stock repurchase program for the repurchase of up to $300 million of our outstanding common stock (our "stock repurchase program"). On March 8, 2012, our Board of Directors approved a $323.7 million increase to our stock repurchase program. As of December 31, 2012, the remaining authorization under our stock repurchase program was $350.0 million. The remaining authorization under our stock repurchase program as of September 30, 2013 was $280.0 million. See Note 6 for more information regarding our stock repurchase program. | |||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||
We performed our annual impairment test on our goodwill and other intangible assets as of June 30, 2013 for our Western Region Operations reporting unit and also re-evaluated the useful lives of our other intangible assets. No goodwill impairment was identified. We also determined that the estimated useful lives of our other intangible assets properly reflected the current estimated useful lives. | |||||||||||||||||
The carrying amount of goodwill by reporting unit is as follows: | |||||||||||||||||
Western | Total | ||||||||||||||||
Region | |||||||||||||||||
Operations | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance as of December 31, 2012 | $ | 565.9 | $ | 565.9 | |||||||||||||
Balance as of September 30, 2013 | $ | 565.9 | $ | 565.9 | |||||||||||||
Due to the many variables inherent in the estimation of a business’s fair value and the relative size of recorded goodwill, changes in assumptions may have a material effect on the results of our impairment test. The discounted cash flows and market participant valuations (and the resulting fair value estimates of the Western Region Operations reporting unit) are sensitive to changes in assumptions including, among others, certain valuation and market assumptions, the Company’s ability to adequately incorporate into its premium rates the future costs of premium-based assessments imposed by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the "ACA"), and assumptions related to the achievement of certain administrative cost reductions and the profitable implementation of California's Coordinated Care Initiative, which includes the dual eligibles demonstration. Changes to any of these assumptions could cause the fair value of our Western Region Operations reporting unit to be below its carrying value. As of June 30, 2013 and June 30, 2012, the ratio of the fair value of our Western Region Operations reporting unit to its carrying value was approximately 149% and 115%, respectively. | |||||||||||||||||
The intangible assets that continue to be subject to amortization using the straight-line method over their estimated lives are as follows: | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Balance | Average Life | ||||||||||||||
Amount | (in years) | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
As of September 30, 2013: | |||||||||||||||||
Provider networks | $ | 40.5 | $ | (35.4 | ) | $ | 5.1 | 19.4 | |||||||||
Customer relationships and other | 29.5 | (19.9 | ) | 9.6 | 11.1 | ||||||||||||
$ | 70 | $ | (55.3 | ) | $ | 14.7 | |||||||||||
As of December 31, 2012: | |||||||||||||||||
Provider networks | $ | 40.5 | $ | (34.6 | ) | $ | 5.9 | 19.4 | |||||||||
Customer relationships and other | 29.5 | (18.1 | ) | 11.4 | 11.1 | ||||||||||||
$ | 70 | $ | (52.7 | ) | $ | 17.3 | |||||||||||
Estimated annual pretax amortization expense for other intangible assets for each of the next five years ending December 31 is as follows (dollars in millions): | |||||||||||||||||
Year | Amount | ||||||||||||||||
2013 | $ | 3.4 | |||||||||||||||
2014 | 2.8 | ||||||||||||||||
2015 | 2.6 | ||||||||||||||||
2016 | 2 | ||||||||||||||||
2017 | 2 | ||||||||||||||||
Restricted Assets | |||||||||||||||||
We and our consolidated subsidiaries are required to set aside certain funds that may only be used for certain purposes pursuant to state regulatory requirements. We have discretion as to whether we invest such funds in cash and cash equivalents or other investments. As of September 30, 2013 and December 31, 2012, the restricted cash and cash equivalents balances totaled $1.7 million and $0.8 million, respectively, and are included in other noncurrent assets. Investment securities held by trustees or agencies were $26.6 million and $25.5 million as of September 30, 2013 and December 31, 2012, respectively, and are included in investments available-for-sale. | |||||||||||||||||
Divested Operations and Services | |||||||||||||||||
Divested operations and services revenues and expenses include any revenues and expenses related to the run-out of our business that was sold in connection with the Northeast Sale (as defined below) on December 11, 2009, including items related to our performance under related administrative services and/or claims servicing agreements, and transition-related revenues and expenses related to the sale of our Medicare PDP business on April 1, 2012. The "Northeast Sale" refers to the sale of all of the outstanding shares of capital stock of our health plan subsidiaries that were domiciled and/or had conducted businesses in Connecticut, New Jersey, New York and Bermuda to an affiliate of UnitedHealth Group Incorporated ("United"), and includes the acquisition by United of membership renewal rights for certain commercial health care business conducted by our subsidiary, Health Net Life Insurance Company ("HNL") in the states of Connecticut and New Jersey. As of December 31, 2012, we had substantially completed the administration and run-out of our divested businesses. See Note 3 for additional information regarding the sale of our Medicare PDP business. | |||||||||||||||||
Medicaid/Medi-Cal Rate Adjustment | |||||||||||||||||
Our revenue from the Medi-Cal program, including seniors and persons with disabilities ("SPD") programs, and other state-sponsored health programs are subject to certain retroactive rate adjustments based on expected and actual health care cost. For the three and nine months ended September 30, 2013, we recognized $32.1 million and $74.3 million, respectively, of premium revenues as a result of retroactive rate adjustments for our SPD and non-SPD members for periods prior to 2013. Retroactive rate adjustments for our SPD and non-SPD members were not material for the three and nine months ended September 30, 2012. | |||||||||||||||||
Medi-Cal Rate Reduction | |||||||||||||||||
In October 2011, CMS approved certain elements of California's 2011-2012 budget proposals to reduce Medi-Cal provider reimbursement rates as authorized by California Assembly Bill 97 (“AB 97”). The elements approved by CMS include a 10 percent reduction in reimbursement rates for a number of providers. DHCS preliminarily indicated that the Medi-Cal managed care rate reductions could be effective retroactive to July 1, 2011. However, a series of preliminary injunctions arising from various legal challenges have prevented the implementation of AB 97, and no such reductions have been made as of September 30, 2013. | |||||||||||||||||
In December 2012, the United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) issued a decision that reversed the preliminary injunctions against the implementation of AB 97. The Ninth Circuit subsequently denied a motion by the plaintiffs for an en banc hearing and a petition to stay implementation of AB 97 pending appeal to the U.S. Supreme Court. Consequently, after the Ninth Circuit's ruling and as of September 30, 2013, there was no legal bar to the implementation of AB 97. As a result, the reimbursement rate reductions authorized by AB 97 are reflected in California's 2013-2014 budget proposal, which was recently passed by the legislature and signed into law by Governor Brown. The State has not formally determined the effective date for the implementation of AB 97, and the plaintiffs in the AB 97 legal actions may still file a petition to the U.S. Supreme Court to review the Ninth Circuit's ruling. In any case, even if the reductions are implemented as currently authorized, they would be applied to Medi-Cal managed care plans only on a prospective basis, and the impact of such reductions could be limited since they would need to be reconciled with minimum payment rates for primary care physicians dictated by the ACA for 2013 and 2014. Due to these uncertainties, we cannot reasonably estimate the range of reductions in premiums and/or related health care cost recoveries, if any, that may result in connection with AB 97. | |||||||||||||||||
Medicaid Premium Taxes | |||||||||||||||||
On June 27, 2013, the State of California reinstated premium taxes retroactive to July 1, 2012 for plans participating in Medi-Cal. As a result of this reinstatement, we recorded $25.6 million in premium taxes, primarily related to 2013, as general and administrative expense for the three months ended September 30, 2013. For the nine months ended September 30, 2013, we recorded $68.4 million, including $18.8 million attributable to periods prior to 2013, as general and administrative expense. In addition, the State of California increased Medicaid premium revenues in an amount equal to the increase in the premium taxes. As a result, we recorded $25.6 million and $68.4 million in health plan services premiums for the three and nine months ended September 30, 2013, respectively. These Medicaid premium taxes are currently authorized by the State of California through July 1, 2016. | |||||||||||||||||
CMS Risk Factor Adjustments | |||||||||||||||||
We have an arrangement with CMS that relates to certain of our Medicare products and pursuant to which periodic changes in our risk factor adjustment scores for certain diagnostic codes result in changes to our health plan services premium revenues. We recognize such changes when the amounts become determinable and the collectability is reasonably assured. Because the recorded revenue is based on our best estimate at the time, the actual payment we receive from CMS for risk adjustment reimbursement settlements may be materially different than the amounts we have initially recognized on our financial statements. The change in our estimate for the risk adjustment revenue in each of the three and nine months ended September 30, 2013 and 2012 was not significant. | |||||||||||||||||
Recently Issued Accounting Pronouncement | |||||||||||||||||
Effective January 1, 2014, we will adopt new accounting guidance relating to the recognition and income statement reporting of any mandated fees to be paid to the federal government by health insurers, pursuant to the Accounting Standards Update ("ASU") No. 2011-06, issued by the Financial Accounting Standards Board ("FASB") in July 2011. This guidance will apply primarily to new fees enacted in the ACA. The mandated fees are expected to be material, and this new accounting guidance will result in the recognition of this expense on a straight-line basis beginning in 2014. |
Sale_of_Medicare_PDP_Business
Sale of Medicare PDP Business | 9 Months Ended |
Sep. 30, 2013 | |
Sale of Businesses [Abstract] | ' |
Sale of Medicare PDP Business | ' |
SALE OF MEDICARE PDP BUSINESS | |
On April 1, 2012, our subsidiary HNL sold substantially all of the assets, properties and rights of HNL used primarily or exclusively in our Medicare PDP business to CVS Caremark for a total purchase price of $248.2 million. In the nine months ended September 30, 2012 we recognized a $132.8 million pretax gain on the sale of our Medicare PDP business, $117.0 million net of tax, and this after tax gain is reported as gain on sale of discontinued operation, net of tax. | |
Our revenues related to our Medicare PDP business were $0 and $191.8 million for the three and nine months ended September 30, 2012, respectively. These revenues were excluded from our continuing operating results and included in loss from discontinued operation. Our Medicare PDP business had a pretax income (loss) of $0 and $(28.8) million for the three and nine months ended September 30, 2012, respectively. As of September 30, 2012 and September 30, 2013, we had no Medicare stand-alone prescription drug plan members. We had no revenues and no pretax income related to the Medicare PDP business for each of the three and nine months ended September 30, 2013. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting Information, Additional Information [Abstract] | ' | |||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||
We operate within three reportable segments, Western Region Operations, Government Contracts and Divested Operations and Services. Our Western Region Operations reportable segment includes the operations of our commercial, Medicare and Medicaid health plans, our health and life insurance companies, and our behavioral health and pharmaceutical services subsidiaries. These operations are conducted primarily in California, Arizona, Oregon and Washington. As a result of the classification of our Medicare PDP business as discontinued operations, our Western Region Operations reportable segment excludes the operating results of our Medicare PDP business for the three and nine months ended September 30, 2012. Our Government Contracts reportable segment includes government-sponsored managed care and administrative services contracts through the TRICARE program, the Department of Defense sponsored Military and Family Life Counseling, formerly Military and Family Life Consultant, program, and certain other health care-related government contracts. Our Divested Operations and Services reportable segment includes the operations of our businesses that provided administrative services to United in connection with the Northeast Sale and transition-related revenues and expenses related to the Medicare PDP business that was sold on April 1, 2012. As of December 31, 2012, we had substantially completed the administration and run-out of our divested businesses. | ||||||||||||||||||||
The financial results of our reportable segments are reviewed on a monthly basis by our chief operating decision maker ("CODM"). We continuously monitor our reportable segments to ensure that they reflect how our CODM manages our company. | ||||||||||||||||||||
We evaluate performance and allocate resources based on segment pretax income. Our assets are managed centrally and viewed by our CODM on a consolidated basis; therefore, they are not allocated to our segments and our segments are not evaluated for performance based on assets. The accounting policies of our reportable segments are the same as those described in Note 2 to the consolidated financial statements included in our Form 10-K, except that intersegment transactions are not eliminated. | ||||||||||||||||||||
We also have a Corporate/Other segment that is not a business operating segment. It is added to our reportable segments to provide a reconciliation to our consolidated results. The Corporate/Other segment includes costs that are excluded from the calculation of segment pretax income because they are not managed within the segments and are not directly identified with a particular operating segment. Accordingly, these costs are not included in the performance evaluation of our reportable segments by our CODM. In addition, certain charges, including but not limited to those related to our continuing efforts to address scale issues, as well as asset impairments, are reported as part of Corporate/Other. | ||||||||||||||||||||
Our segment information for the three and nine months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||||||||
Western Region | Government | Divested Operations and Services | Corporate/Other/ | Total | ||||||||||||||||
Operations | Contracts | Eliminations | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||
Revenues from external sources | $ | 2,625.70 | $ | 149.3 | $ | — | $ | — | $ | 2,775.00 | ||||||||||
Intersegment revenues | 2.7 | — | — | (2.7 | ) | — | ||||||||||||||
Segment pretax income (loss) | 85.2 | 23.5 | — | (0.1 | ) | 108.6 | ||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||
Revenues from external sources | $ | 2,596.90 | $ | 169.8 | $ | 12.9 | $ | — | $ | 2,779.60 | ||||||||||
Intersegment revenues | 2.7 | — | — | (2.7 | ) | — | ||||||||||||||
Segment pretax income (loss) | 20.2 | 21.1 | (4.7 | ) | (7.2 | ) | 29.4 | |||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Revenues from external sources | $ | 7,886.70 | $ | 423.8 | $ | — | $ | — | $ | 8,310.50 | ||||||||||
Intersegment revenues | 8.4 | — | — | (8.4 | ) | — | ||||||||||||||
Segment pretax income (loss) | 204.3 | 50.6 | — | (13.0 | ) | 241.9 | ||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Revenues from external sources | $ | 7,898.20 | $ | 527.4 | $ | 25.7 | $ | — | $ | 8,451.30 | ||||||||||
Intersegment revenues | 8.3 | — | — | (8.3 | ) | — | ||||||||||||||
Segment pretax income (loss) | 12.6 | 66.6 | (34.4 | ) | (21.6 | ) | 23.2 | |||||||||||||
Our health plan services premium revenue by line of business is as follows: | ||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Commercial premium revenue | $ | 1,279.80 | $ | 1,420.40 | $ | 3,903.80 | $ | 4,310.00 | ||||||||||||
Medicare premium revenue | 685.4 | 682.9 | 2,080.30 | 2,089.40 | ||||||||||||||||
Medicaid premium revenue | 641.6 | 475.4 | 1,833.60 | 1,419.20 | ||||||||||||||||
Total health plan services premiums | $ | 2,606.80 | $ | 2,578.70 | $ | 7,817.70 | $ | 7,818.60 | ||||||||||||
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
INVESTMENTS | |||||||||||||||||||||||||
Investments classified as available-for-sale, which consist primarily of debt securities, are stated at fair value. Unrealized gains and losses are excluded from earnings and reported as other comprehensive income, net of income tax effects. The cost of investments sold is determined in accordance with the specific identification method, and realized gains and losses are included in net investment income. We periodically assess our investments available-for-sale for other-than-temporary impairment. Any such other-than-temporary impairment loss is recognized as a realized loss, which is recorded through earnings, if related to credit losses. | |||||||||||||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, we recognized no losses from other-than-temporary impairments of our cash equivalents and available-for-sale investments. | |||||||||||||||||||||||||
We classified $52.6 million as investments available-for-sale-noncurrent as of September 30, 2013 because we did not intend to sell and we believed it may take longer than a year for such impaired securities to recover. This classification does not affect the marketability or the valuation of the investments, which are reflected at their market value as of September 30, 2013. We had no investments available-for-sale-noncurrent as of December 31, 2012. | |||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the amortized cost, gross unrealized holding gains and losses, and fair value of our current investments available-for-sale and our investments available-for-sale-noncurrent, after giving effect to other-than-temporary impairments, were as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Carrying | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Asset-backed securities | $ | 410.1 | $ | 3.9 | $ | (6.6 | ) | $ | 407.4 | ||||||||||||||||
U.S. government and agencies | 26.5 | — | — | 26.5 | |||||||||||||||||||||
Obligations of states and other political subdivisions | 741.1 | 6.4 | (28.3 | ) | 719.2 | ||||||||||||||||||||
Corporate debt securities | 433.4 | 3.3 | (9.8 | ) | 426.9 | ||||||||||||||||||||
$ | 1,611.10 | $ | 13.6 | $ | (44.7 | ) | $ | 1,580.00 | |||||||||||||||||
Noncurrent: | |||||||||||||||||||||||||
Asset-backed securities | $ | 0.8 | $ | — | $ | (0.1 | ) | $ | 0.7 | ||||||||||||||||
Obligations of states and other political subdivisions | 48.9 | — | (6.0 | ) | 42.9 | ||||||||||||||||||||
Corporate debt securities | 10.4 | — | (1.4 | ) | 9 | ||||||||||||||||||||
$ | 60.1 | $ | — | $ | (7.5 | ) | $ | 52.6 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Carrying | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Asset-backed securities | $ | 499.7 | $ | 19.6 | $ | (0.2 | ) | $ | 519.1 | ||||||||||||||||
U.S. government and agencies | 25.9 | — | — | 25.9 | |||||||||||||||||||||
Obligations of states and other political subdivisions | 819.9 | 24.2 | (2.0 | ) | 842.1 | ||||||||||||||||||||
Corporate debt securities | 408.4 | 17.5 | (0.5 | ) | 425.4 | ||||||||||||||||||||
$ | 1,753.90 | $ | 61.3 | $ | (2.7 | ) | $ | 1,812.50 | |||||||||||||||||
As of September 30, 2013, the contractual maturities of our current investments available-for-sale and our investments available-for-sale-noncurrent were as follows: | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
Current: | (Dollars in millions) | ||||||||||||||||||||||||
Due in one year or less | $ | 42.5 | $ | 42.8 | |||||||||||||||||||||
Due after one year through five years | 281.6 | 284.1 | |||||||||||||||||||||||
Due after five years through ten years | 442.8 | 434.9 | |||||||||||||||||||||||
Due after ten years | 434.1 | 410.8 | |||||||||||||||||||||||
Asset-backed securities | 410.1 | 407.4 | |||||||||||||||||||||||
Total current investments available-for-sale | $ | 1,611.10 | $ | 1,580.00 | |||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
Noncurrent: | (Dollars in millions) | ||||||||||||||||||||||||
Due after one year through five years | $ | 1 | $ | 0.8 | |||||||||||||||||||||
Due after five years through ten years | 9.5 | 8.3 | |||||||||||||||||||||||
Due after ten years | 48.8 | 42.8 | |||||||||||||||||||||||
Asset-backed securities | 0.8 | 0.7 | |||||||||||||||||||||||
Total noncurrent investments available-for-sale | $ | 60.1 | $ | 52.6 | |||||||||||||||||||||
Proceeds from sales of investments available-for-sale during the three and nine months ended September 30, 2013 were $80.4 million and $653.8 million, respectively. Gross realized gains and losses totaled $1.0 million and $0.7 million, respectively, for the three months ended September 30, 2013, and $25.5 million and $2.2 million, respectively, for the nine months ended September 30, 2013. Proceeds from sales of investments available-for-sale during the three and nine months ended September 30, 2012 were $117.6 million and $1,132.8 million, respectively. Gross realized gains and losses totaled $4.3 million and $36,000, respectively, for the three months ended September 30, 2012, and $30.1 million and $0.4 million, respectively, for the nine months ended September 30, 2012. | |||||||||||||||||||||||||
The following tables show our investments’ fair values and gross unrealized losses for individual securities that have been in a continuous loss position through September 30, 2013 and December 31, 2012. These investments are interest-yielding debt securities of varying maturities. We have determined that the unrealized loss position for these securities is primarily due to market volatility. Generally, in a rising interest rate environment, the estimated fair value of fixed income securities would be expected to decrease; conversely, in a decreasing interest rate environment, the estimated fair value of fixed income securities would be expected to increase. These securities may also be negatively impacted by illiquidity in the market. | |||||||||||||||||||||||||
The following table shows our current investments' fair values and gross unrealized losses for individual securities that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Asset-backed securities | $ | 232.8 | $ | (6.2 | ) | $ | 9.1 | $ | (0.4 | ) | $ | 241.9 | $ | (6.6 | ) | ||||||||||
Obligations of states and other political subdivisions | 542.4 | (28.3 | ) | 0.2 | — | 542.6 | (28.3 | ) | |||||||||||||||||
Corporate debt securities | 253.3 | (9.6 | ) | 2.5 | (0.2 | ) | 255.8 | (9.8 | ) | ||||||||||||||||
$ | 1,028.50 | $ | (44.1 | ) | $ | 11.8 | $ | (0.6 | ) | $ | 1,040.30 | $ | (44.7 | ) | |||||||||||
The following table shows our noncurrent investments' fair values and gross unrealized losses for individual securities that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | — | $ | 0.7 | $ | (0.1 | ) | $ | 0.7 | $ | (0.1 | ) | |||||||||||
Obligations of states and other political subdivisions | 42.9 | (6.0 | ) | — | — | 42.9 | (6.0 | ) | |||||||||||||||||
Corporate debt securities | 9 | (1.4 | ) | — | — | 9 | (1.4 | ) | |||||||||||||||||
$ | 51.9 | $ | (7.4 | ) | $ | 0.7 | $ | (0.1 | ) | $ | 52.6 | $ | (7.5 | ) | |||||||||||
The following table shows the number of our individual securities-current that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than | 12 Months | Total | |||||||||||||||||||||||
12 Months | or More | ||||||||||||||||||||||||
Asset-backed securities | 101 | 7 | 108 | ||||||||||||||||||||||
Obligations of states and other political subdivisions | 237 | 1 | 238 | ||||||||||||||||||||||
Corporate debt securities | 213 | 3 | 216 | ||||||||||||||||||||||
551 | 11 | 562 | |||||||||||||||||||||||
The following table shows the number of our individual securities-noncurrent that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than | 12 Months | Total | |||||||||||||||||||||||
12 Months | or More | ||||||||||||||||||||||||
Asset-backed securities | — | 1 | 1 | ||||||||||||||||||||||
Obligations of states and other political subdivisions | 18 | — | 18 | ||||||||||||||||||||||
Corporate debt securities | 9 | — | 9 | ||||||||||||||||||||||
27 | 1 | 28 | |||||||||||||||||||||||
The following table shows our current investments’ fair values and gross unrealized losses for individual securities that have been in a continuous loss position through December 31, 2012: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Asset-backed securities | $ | 54.9 | $ | (0.2 | ) | $ | 0.1 | $ | — | $ | 55 | $ | (0.2 | ) | |||||||||||
U.S. government and agencies | 10.1 | — | — | — | 10.1 | — | |||||||||||||||||||
Obligations of states and other political subdivisions | 192.1 | (2.0 | ) | 0.2 | — | 192.3 | (2.0 | ) | |||||||||||||||||
Corporate debt securities | 45.9 | (0.5 | ) | — | — | 45.9 | (0.5 | ) | |||||||||||||||||
$ | 303 | $ | (2.7 | ) | $ | 0.3 | $ | — | $ | 303.3 | $ | (2.7 | ) | ||||||||||||
Stock_Repurchase_Program
Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2013 | |
Class of Stock Disclosures [Abstract] | ' |
Stock Repurchase Program | ' |
STOCK REPURCHASE PROGRAM | |
On May 2, 2011, our Board of Directors authorized our stock repurchase program pursuant to which a total of $300.0 million of our outstanding common stock could be repurchased. On March 8, 2012, our Board of Directors approved a $323.7 million increase to our stock repurchase program. | |
Subject to the approval of our Board of Directors, we may repurchase our common stock under our stock repurchase program from time to time in privately negotiated transactions, through accelerated stock repurchase programs or open market transactions, including pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934, as amended. The timing of any repurchases and the actual number of shares of stock repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations, and other market and economic conditions. Our stock repurchase program may be suspended or discontinued at any time. | |
During the three and nine months ended September 30, 2012, we repurchased approximately 1.5 million and 2.1 million shares, respectively, of our common stock for aggregate consideration of $36.1 million and $50.0 million, respectively, under our stock repurchase program. As of December 31, 2012, the remaining authorization under our stock repurchase program was $350.0 million. During the three months ended September 30, 2013, we made no share repurchases and during the nine months ended September 30, 2013, we repurchased approximately 2.7 million shares of our common stock for aggregate consideration of $70.0 million under our stock repurchase program. The remaining authorization under our stock repurchase program as of September 30, 2013 was $280.0 million. |
Financing_Arrangements
Financing Arrangements | 9 Months Ended | |
Sep. 30, 2013 | ||
Financing Arrangements [Abstract] | ' | |
Financing Arrangements | ' | |
FINANCING ARRANGEMENTS | ||
Revolving Credit Facility | ||
In October 2011, we entered into a $600 million unsecured revolving credit facility due in October 2016, which includes a $400 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swing line loans (which sublimits may be increased in connection with any increase in the credit facility described below). In addition, we have the ability from time to time to increase the credit facility by up to an additional $200 million in the aggregate, subject to the receipt of additional commitments. As of September 30, 2013, $100.0 million was outstanding under our revolving credit facility and the maximum amount available for borrowing under the revolving credit facility was $491.3 million (see "—Letters of Credit" below). | ||
Amounts outstanding under our revolving credit facility bear interest, at the Company’s option, at either (a) the base rate (which is a rate per annum equal to the greatest of (i) the federal funds rate plus one-half of one percent, (ii) Bank of America, N.A.’s “prime rate” and (iii) the Eurodollar Rate (as such term is defined in the credit facility) for a one-month interest period plus one percent) plus an applicable margin ranging from 45 to 105 basis points or (b) the Eurodollar Rate plus an applicable margin ranging from 145 to 205 basis points. The applicable margins are based on our consolidated leverage ratio, as specified in the credit facility, and are subject to adjustment following the Company’s delivery of a compliance certificate for each fiscal quarter. | ||
Our revolving credit facility includes, among other customary terms and conditions, limitations (subject to specified exclusions) on our and our subsidiaries’ ability to incur debt; create liens; engage in certain mergers, consolidations and acquisitions; sell or transfer assets; enter into agreements that restrict the ability to pay dividends or make or repay loans or advances; make investments, loans, and advances; engage in transactions with affiliates; and make dividends. In addition, we are required to be in compliance at the end of each fiscal quarter with a specified consolidated leverage ratio and consolidated fixed charge coverage ratio. As of September 30, 2013, we were in compliance with all covenants under the revolving credit facility. | ||
Our revolving credit facility contains customary events of default, including nonpayment of principal or other amounts when due; breach of covenants; inaccuracy of representations and warranties; cross-default and/or cross-acceleration to other indebtedness of the Company or our subsidiaries in excess of $50 million; certain ERISA-related events; noncompliance by the Company or any of our subsidiaries with any material term or provision of the HMO Regulations or Insurance Regulations (as each such term is defined in the credit facility) in a manner that could reasonably be expected to result in a material adverse effect; certain voluntary and involuntary bankruptcy events; inability to pay debts; undischarged, uninsured judgments greater than $50 million against us and/or our subsidiaries that are not stayed within 60 days; actual or asserted invalidity of any loan document; and a change of control. If an event of default occurs and is continuing under the revolving credit facility, the lenders thereunder may, among other things, terminate their obligations under the facility and require us to repay all amounts owed thereunder. | ||
Letters of Credit | ||
Pursuant to the terms of our revolving credit facility, we can obtain letters of credit in an aggregate amount of $400 million and the maximum amount available for borrowing is reduced by the dollar amount of any outstanding letters of credit. As of September 30, 2013 and December 31, 2012, we had outstanding letters of credit of $8.7 million and $59.4 million, respectively, resulting in a maximum amount available for borrowing of $491.3 million and $440.6 million, respectively. As of September 30, 2013 and December 31, 2012, no amounts had been drawn on any of these letters of credit. | ||
Senior Notes | ||
In 2007 we issued $400 million in aggregate principal amount of 6.375% Senior Notes due 2017 ("Senior Notes"). The indenture governing the Senior Notes limits our ability to incur certain liens, or consolidate, merge or sell all or substantially all of our assets. In the event of the occurrence of both (1) a change of control of Health Net, Inc. and (2) a below investment grade rating by any two of Fitch, Inc., Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services within a specified period, we will be required to make an offer to purchase the Senior Notes at a price equal to 101% of the principal amount of the Senior Notes plus accrued and unpaid interest to the date of repurchase. As of September 30, 2013, no default or event of default had occurred under the indenture governing the Senior Notes. | ||
The Senior Notes may be redeemed in whole at any time or in part from time to time, prior to maturity at our option, at a redemption price equal to the greater of: | ||
• | 100% of the principal amount of the Senior Notes then outstanding to be redeemed; or | |
• | the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes to be redeemed (not including any portion of such payments of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable treasury rate plus 30 basis points | |
plus, in each case, accrued and unpaid interest on the principal amount being redeemed to the redemption date. | ||
Each of the following will be an Event of Default under the indenture governing the Senior Notes: | ||
• | failure to pay interest for 30 days after the date payment is due and payable; provided that an extension of an interest payment period by us in accordance with the terms of the Senior Notes shall not constitute a failure to pay interest; | |
• | failure to pay principal or premium, if any, on any note when due, either at maturity, upon any redemption, by declaration or otherwise; | |
• | failure to perform any other covenant or agreement in the notes or indenture for a period of 60 days after notice that performance was required; | |
• | (A) our failure or the failure of any of our subsidiaries to pay indebtedness for money we borrowed or any of our subsidiaries borrowed in an aggregate principal amount of at least $50 million, at the later of final maturity and the expiration of any related applicable grace period and such defaulted payment shall not have been made, waived or extended within 30 days after notice or (B) acceleration of the maturity of indebtedness for money we borrowed or any of our subsidiaries borrowed in an aggregate principal amount of at least $50 million, if that acceleration results from a default under the instrument giving rise to or securing such indebtedness for money borrowed and such indebtedness has not been discharged in full or such acceleration has not been rescinded or annulled within 30 days after notice; or | |
• | events in bankruptcy, insolvency or reorganization of our Company. | |
Our Senior Notes payable balances were $399.2 million as of September 30, 2013 and $399.1 million as of December 31, 2012. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||
We record certain assets and liabilities at fair value in the consolidated balance sheets and categorize them based upon the level of judgment associated with the inputs used to measure their fair value and the level of market price observability. We also estimate fair value when the volume and level of activity for the asset or liability have significantly decreased or in those circumstances that indicate when a transaction is not orderly. | ||||||||||||||||||||||||||||
Investments measured and reported at fair value using Level inputs are classified and disclosed in one of the following categories: | ||||||||||||||||||||||||||||
Level 1—Quoted prices are available in active markets for identical investments as of the reporting date. The types of investments included in Level 1 include U.S. Treasury securities and listed equities. We do not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably impact the quoted price. | ||||||||||||||||||||||||||||
Level 2—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models and/or other valuation methodologies that are based on an income approach. Examples include, but are not limited to, multidimensional relational model, option adjusted spread model, and various matrices. Specific pricing inputs include quoted prices for similar securities in both active and non-active markets, other observable inputs such as interest rates, yield curve volatilities, default rates, and inputs that are derived principally from or corroborated by other observable market data. Investments that are generally included in this category include asset-backed securities, corporate bonds and loans, and state and municipal bonds. | ||||||||||||||||||||||||||||
Level 3—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation using assumptions that market participants would use, including assumptions for risk. Level 3 includes an embedded contractual derivative asset and liability held by the Company estimated at fair value. Significant inputs used in the derivative valuation model include the estimated growth in Health Net health care expenditures and estimated growth in national health care expenditures. The growth in these expenditures was modeled using a Monte Carlo simulation approach. Level 3 also includes a state-sponsored health plans settlement account deficit asset estimated at fair value based on the income approach. See Note 10 for additional information on our state-sponsored health plans rate settlement agreement. | ||||||||||||||||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. | ||||||||||||||||||||||||||||
The following tables present information about our assets and liabilities measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012, and indicate the fair value hierarchy of the valuation techniques utilized by us to determine such fair value (dollars in millions): | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 2- | Level 3 | Total | ||||||||||||||||||||||||
noncurrent | ||||||||||||||||||||||||||||
As of September 30, 2013: | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 686.1 | $ | — | $ | — | $ | — | $ | 686.1 | ||||||||||||||||||
Investments—available-for-sale | ||||||||||||||||||||||||||||
Asset-backed debt securities: | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | — | $ | 208.6 | $ | — | $ | — | $ | 208.6 | ||||||||||||||||||
Commercial mortgage-backed securities | — | 156.8 | 0.7 | — | 157.5 | |||||||||||||||||||||||
Other asset-backed securities | — | 42 | — | — | 42 | |||||||||||||||||||||||
U.S. government and agencies: | ||||||||||||||||||||||||||||
U.S. Treasury securities | 26.5 | — | — | — | 26.5 | |||||||||||||||||||||||
U.S. Agency securities | — | — | — | — | — | |||||||||||||||||||||||
Obligations of states and other political subdivisions | — | 719.2 | 42.9 | — | 762.1 | |||||||||||||||||||||||
Corporate debt securities | — | 426.9 | 9 | — | 435.9 | |||||||||||||||||||||||
Total investments at fair value | $ | 26.5 | $ | 1,553.50 | $ | 52.6 | $ | — | $ | 1,632.60 | ||||||||||||||||||
Embedded contractual derivative | — | — | — | 12.7 | 12.7 | |||||||||||||||||||||||
State-sponsored health plans settlement account deficit | — | — | — | 51.7 | 51.7 | |||||||||||||||||||||||
Total assets at fair value | $ | 712.6 | $ | 1,553.50 | $ | 52.6 | $ | 64.4 | $ | 2,383.10 | ||||||||||||||||||
Level 3 | ||||||||||||||||||||||||||||
As of September 30, 2013: | ||||||||||||||||||||||||||||
Liability: | ||||||||||||||||||||||||||||
Embedded contractual derivative | $ | 0.7 | ||||||||||||||||||||||||||
Total liability at fair value | $ | 0.7 | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 2- | Level 3 | Total | ||||||||||||||||||||||||
noncurrent | ||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 340.1 | $ | — | $ | — | $ | — | $ | 340.1 | ||||||||||||||||||
Investments—available-for-sale | ||||||||||||||||||||||||||||
Asset-backed debt securities: | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | — | $ | 272.4 | $ | — | $ | — | $ | 272.4 | ||||||||||||||||||
Commercial mortgage-backed securities | — | 223.1 | — | — | 223.1 | |||||||||||||||||||||||
Other asset-backed securities | — | 23.6 | — | — | 23.6 | |||||||||||||||||||||||
U.S. government and agencies: | ||||||||||||||||||||||||||||
U.S. Treasury securities | 25.9 | — | — | — | 25.9 | |||||||||||||||||||||||
U.S. Agency securities | — | — | — | — | — | |||||||||||||||||||||||
Obligations of states and other political subdivisions | — | 841.9 | — | 0.2 | 842.1 | |||||||||||||||||||||||
Corporate debt securities | — | 425.4 | — | — | 425.4 | |||||||||||||||||||||||
Total investments at fair value | $ | 25.9 | $ | 1,786.40 | $ | — | $ | 0.2 | $ | 1,812.50 | ||||||||||||||||||
Embedded contractual derivative | — | — | — | 11.2 | 11.2 | |||||||||||||||||||||||
Total assets at fair value | $ | 366 | $ | 1,786.40 | $ | — | $ | 11.4 | $ | 2,163.80 | ||||||||||||||||||
Level 3 | ||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||
Liability: | ||||||||||||||||||||||||||||
Embedded contractual derivative | $ | 3.2 | ||||||||||||||||||||||||||
Total liability at fair value | $ | 3.2 | ||||||||||||||||||||||||||
We had no transfers between Levels 1 and 2 of financial assets or liabilities that are fair valued on a recurring basis during the three and nine months ended September 30, 2013 and 2012. In determining when transfers between levels are recognized, our accounting policy is to recognize the transfers based on the actual date of the event or change in circumstances that caused the transfer. | ||||||||||||||||||||||||||||
The changes in the balances of Level 3 financial assets for the three months ended September 30, 2013 and 2012 were as follows (dollars in millions): | ||||||||||||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Available-For-Sale Investments | Embedded Contractual Derivative | State-Sponsored Health Plans Settlement Account Deficit | Total | Available-For-Sale Investments | Embedded Contractual Derivative | Total | ||||||||||||||||||||||
Opening balance | $ | — | $ | 10.8 | $ | 35.4 | $ | 46.2 | $ | 0.2 | $ | 15 | $ | 15.2 | ||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total gains or losses for the period: | ||||||||||||||||||||||||||||
Realized in net income | — | 1.9 | 16.3 | 18.2 | — | (7.8 | ) | (7.8 | ) | |||||||||||||||||||
Unrealized in accumulated other comprehensive income | — | — | — | — | — | — | — | |||||||||||||||||||||
Purchases, issues, sales and settlements: | ||||||||||||||||||||||||||||
Purchases/additions | — | — | — | — | — | — | — | |||||||||||||||||||||
Issues | — | — | — | — | — | — | — | |||||||||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Settlements | — | — | — | — | — | — | ||||||||||||||||||||||
Closing balance | $ | — | $ | 12.7 | $ | 51.7 | $ | 64.4 | $ | 0.2 | $ | 7.2 | $ | 7.4 | ||||||||||||||
Change in unrealized gains (losses) included in net income for assets held at the end of the reporting period | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
The changes in the balances of Level 3 financial assets for the nine months ended September 30, 2013 and 2012 were as follows (dollars in millions): | ||||||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Available-For-Sale Investments | Embedded Contractual Derivative | State-Sponsored Health Plans Settlement Account Deficit | Total | Available-For-Sale Investments | Embedded Contractual Derivative | Total | ||||||||||||||||||||||
Opening balance | $ | 0.2 | $ | 11.2 | $ | — | $ | 11.4 | $ | 0.2 | $ | 5.3 | $ | 5.5 | ||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total gains or losses for the period: | ||||||||||||||||||||||||||||
Realized in net income | — | 1.5 | 51.7 | 53.2 | — | 1.9 | 1.9 | |||||||||||||||||||||
Unrealized in accumulated other comprehensive income | — | — | — | — | — | — | — | |||||||||||||||||||||
Purchases, issues, sales and settlements: | ||||||||||||||||||||||||||||
Purchases/additions | — | — | — | — | — | — | — | |||||||||||||||||||||
Issues | — | — | — | — | — | — | — | |||||||||||||||||||||
Sales | (0.2 | ) | — | — | (0.2 | ) | — | — | — | |||||||||||||||||||
Settlements | — | — | — | — | — | — | — | |||||||||||||||||||||
Closing balance | $ | — | $ | 12.7 | $ | 51.7 | $ | 64.4 | $ | 0.2 | $ | 7.2 | $ | 7.4 | ||||||||||||||
Change in unrealized gains (losses) included in net income for assets held at the end of the reporting period | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
The changes in the balance of the Level 3 financial liability for the three and nine months ended September, 2013 were as follows (dollars in millions): | ||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | |||||||||||||||||||||||||||
Embedded Contractual Derivative | ||||||||||||||||||||||||||||
Opening balance, July 1 and January 1 | $ | 4.8 | $ | 3.2 | ||||||||||||||||||||||||
Transfers into Level 3 | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||||||||||
Total gains or losses for the period: | ||||||||||||||||||||||||||||
Realized in net income | (4.1 | ) | (2.5 | ) | ||||||||||||||||||||||||
Unrealized in accumulated other comprehensive income | — | — | ||||||||||||||||||||||||||
Purchases, issues, sales and settlements: | ||||||||||||||||||||||||||||
Purchases | — | — | ||||||||||||||||||||||||||
Issues | — | — | ||||||||||||||||||||||||||
Sales | — | — | ||||||||||||||||||||||||||
Settlements | — | — | ||||||||||||||||||||||||||
Closing balance | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||||
We had no financial liabilities fair valued on a recurring basis during the three and nine months ended September 30, 2012. | ||||||||||||||||||||||||||||
The following table presents information about financial assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2012 and indicates the fair value hierarchy of the valuation techniques utilized by us to determine such fair value (dollars in millions): | ||||||||||||||||||||||||||||
As of December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Lease impairment obligation | $ | — | $ | — | $ | 7.4 | $ | 7.4 | ||||||||||||||||||||
We had no assets or liabilities fair valued on a non-recurring basis during the three and nine months ended September 30, 2013. | ||||||||||||||||||||||||||||
The following tables present quantitative information about Level 3 Fair Value Measurements as of September 30, 2013 and December 31, 2012 (dollars in millions): | ||||||||||||||||||||||||||||
Fair Value as of | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Embedded contractual derivative asset | $ | 12.7 | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | -5.34 | % | — | 7.91% | -0.69% | |||||||||||||||||||
National Health Care Expenditures | -0.55 | % | — | 7.04% | -3.35% | |||||||||||||||||||||||
Embedded contractual derivative liability | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | 2.59 | % | — | 6.10% | -4.26% | |||||||||||||||||||||
$ | 0.7 | National Health Care Expenditures | -1.8 | % | — | 8.85% | -4.00% | |||||||||||||||||||||
State-sponsored health plans settlement account deficit | $ | 51.7 | Income Approach | Discount Rate | 1.135 | % | — | 1.14% | -1.13% | |||||||||||||||||||
Goodwill - Western Region reporting unit | $ | 565.9 | Income Approach | Discount Rate | 10 | % | — | 10.00% | -10.00% | |||||||||||||||||||
Fair Value as of | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Embedded contractual derivative asset | $ | 11.2 | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | -1.7 | % | — | 0.80% | -0.004 | |||||||||||||||||||
National Health Care Expenditures | 3.7 | % | — | 3.70% | -3.70% | |||||||||||||||||||||||
Embedded contractual derivative liability | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | -0.3 | % | — | 10.10% | -4.90% | |||||||||||||||||||||
$ | 3.2 | National Health Care Expenditures | -0.1 | % | — | 7.30% | -3.30% | |||||||||||||||||||||
Goodwill - Western Region reporting unit | $ | 565.9 | Income Approach | Discount Rate | 9 | % | — | 9.00% | -9.00% | |||||||||||||||||||
Lease impairment obligation | $ | 7.4 | Income Approach | Discount Rate | 3.26 | % | — | 3.26% | -3.26% | |||||||||||||||||||
Valuation policies and procedures are managed by our finance group, which regularly monitors fair value measurements. Fair value measurements, including those categorized within Level 3, are prepared and reviewed on a quarterly basis and any third-party valuations are reviewed for reasonableness and compliance with the Fair Value Measurement Topic of the Accounting Standards Codification. Specifically, we compare prices received from our pricing service to prices reported by the custodian or third-party investment advisors and we perform a review of the inputs, validating that they are reasonable and observable in the marketplace, if applicable. For our embedded contractual derivative asset and liability, we use internal historical and projected health care expenditure data and the national health care expenditures as reflected in the National External Trend Standards, which is published by CMS, to estimate the unobservable inputs. The growth rates in each of these health care expenditures are modeled using the Monte Carlo simulation approach and the resulting value is discounted to the valuation date. We estimate our recurring Level 3 state-sponsored health plans settlement account deficit asset using the income approach based on discounted cash flows. We estimate our non-recurring Level 3 asset and liability, goodwill for our Western Region Operations reporting unit and the lease impairment obligation using the income approach based on discounted cash flows. | ||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of our embedded contractual derivative are the estimated growth in Health Net health care expenditures and the estimated growth in national health care expenditures. Significant increases (decreases) in the estimated growth in Health Net health care expenditures or decreases (increases) in the estimated growth in national health expenditures would result in a significantly lower (higher) fair value measurement. The significant unobservable input used in the fair value measurement of our state-sponsored health plans settlement account deficit asset is our discount rate. Significant increases (decreases) in the discount rate would result in a significantly lower (higher) fair value measurement. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Proceedings | ' |
LEGAL PROCEEDINGS | |
Overview | |
We record reserves and accrue costs for certain legal proceedings and regulatory matters to the extent that we determine an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. While such reserves and accrued costs reflect our best estimate of the probable loss for such matters, our recorded amounts may differ materially from the actual amount of any such losses. In some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal and regulatory proceedings, which may be exacerbated by various factors, including but not limited to that they may involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; involve a large number of parties, claimants or regulatory bodies; are in the early stages of the proceedings; involve a number of separate proceedings, each with a wide range of potential outcomes; or result in a change of business practices. Further, there may be various levels of judicial review available to the Company in connection with any such proceeding in the event damages are awarded or a fine or penalty is assessed. As of the date of this report, amounts accrued for legal proceedings and regulatory matters were not material. However, it is possible that in a particular quarter or annual period our financial condition, results of operations, cash flow and/or liquidity could be materially adversely affected by an ultimate unfavorable resolution of or development in legal and/or regulatory proceedings, including those described below in this Note 9 under the heading “Litigation and Investigations Related to Unaccounted-for Server Drives,” depending, in part, upon our financial condition, results of operations, cash flow or liquidity in such period, and our reputation may be adversely affected. Except for the regulatory and legal proceedings discussed in this Note 9 under the heading “Litigation and Investigations Related to Unaccounted-for Server Drives,” management believes that the ultimate outcome of any of the regulatory and legal proceedings that are currently pending against us should not have a material adverse effect on our financial condition, results of operations, cash flow and liquidity. | |
Litigation and Investigations Related to Unaccounted-for Server Drives | |
We are a defendant in three related litigation matters pending in California state and federal courts relating to information security issues. On January 21, 2011, International Business Machines Corp. ("IBM"), which handles our data center operations, notified us that it could not locate several hard disk drives that had been used in our data center located in Rancho Cordova, California. We have since determined that personal information of approximately two million former and current Health Net members, employees and health care providers is on the drives. Commencing on March 14, 2011, we provided written notification to the individuals whose information is on the drives. To help protect the personal information of affected individuals, we offered them two years of free credit monitoring services, in addition to identity theft insurance and fraud resolution and restoration of credit files services, if needed. | |
On March 18, 2011, a putative class action relating to this incident was filed against us in the U.S. District Court for the Central District of California (the "Central District of California"), and similar actions were later filed against us in other federal and state courts in California. A number of those actions were transferred to and consolidated in the U.S. District Court for the Eastern District of California (the "Eastern District of California"), and the two remaining actions are currently pending in the Superior Court of California, County of San Francisco ("San Francisco County Superior Court") and the Superior Court of California, County of Sacramento ("Sacramento County Superior Court"). The consolidated amended complaint in the federal action pending in the Eastern District of California was filed on behalf of a putative class of over 800,000 of our current or former members who received the written notification, and also named IBM as a defendant. It sought to state claims for violation of the California Confidentiality of Medical Information Act and the California Customer Records Act, and sought statutory damages of up to $1,000 for each class member, as well as injunctive and declaratory relief, attorneys’ fees and other relief. On August 29, 2011, we filed a motion to dismiss the consolidated complaint. On January 20, 2012, the district court issued an order dismissing the consolidated complaint on the grounds that the plaintiffs lacked standing to bring their action in federal court. On April 20, 2012, an amended complaint with a new plaintiff was filed against us, but no longer asserted claims against IBM. The amended complaint asserted the same causes of action and sought the same relief as the earlier complaint. On June 18, 2012, we filed a motion to dismiss the amended complaint, which is currently pending. | |
The San Francisco County Superior Court proceeding was instituted on March 28, 2011 and is brought on behalf of a putative class of California residents who received the written notification, and seeks to state similar claims against us, as well as claims for violation of California's Unfair Competition Law, and seeks similar relief. We moved to compel arbitration of the two named plaintiffs’ claims. The court granted our motion as to one of the named plaintiffs and denied it as to the other. We have appealed the latter ruling, but subsequently dismissed the appeal. Thereafter, the plaintiff as to whom our motion to compel arbitration was granted filed a petition for a writ of mandate with the California Court of Appeal seeking review of that ruling. On July 9, 2012, the Court of Appeal issued a peremptory writ of mandate directing the Superior Court to vacate its order granting the motion to compel arbitration and to enter an order denying the motion to compel. | |
The Sacramento County Superior Court proceeding was instituted on April 3, 2012 and is brought on behalf of a putative class of California members whose information was contained on the unaccounted for drives. The action contains the same claims and seeks the same relief as the case pending in the Eastern District of California. On June 18, 2012, we filed a demurrer seeking dismissal of this complaint, which is currently pending. | |
In July 2013, we entered into a settlement agreement (the “Settlement Agreement”) with the plaintiffs in the three putative class actions described above. On October 23, 2013, counsel for the named plaintiffs filed a motion for preliminary approval of the Settlement Agreement with the Sacramento County Superior Court. The hearing on this motion is currently scheduled for November 12, 2013. If the Court grants preliminary approval, it will set a date for a final approval hearing, and notice will be sent to all settlement class members advising them of the Settlement Agreement and their right to object to or opt out of the Settlement Agreement. In the event the Settlement Agreement receives final approval, each of the three putative class actions described above will be dismissed with prejudice, and all class members who do not opt out will release all claims they may have related to or arising from the unaccounted-for server drives. Under the terms of the Settlement Agreement, which would cover all individuals whose personal information was identified as being on the unaccounted-for server drives, class members who did not previously accept our offer of the credit monitoring and related services described above would be eligible to receive such credit monitoring and related services for a period of two years at no cost to them. Class members who previously accepted our original offer would be eligible to receive one additional year of such services. In addition, under the Settlement Agreement, class members would be eligible to receive reimbursement for certain unreimbursed losses arising from identity theft during a specified time period, up to a cap of $50,000 per class member, and $2 million in the aggregate. The Settlement Agreement also provides that we will continue our ongoing activities to enhance our information security measures, including the encryption of data at rest on our servers and storage area networks. We will also be responsible for the payment of any award of fees and expenses to plaintiffs' counsel for each of the three class actions described above as determined by the Sacramento County Superior Court. Finally, we will be responsible for the costs of administering the Settlement Agreement. In the event that the Sacramento County Superior Court does not grant final approval of the Settlement Agreement, and the parties are unable to negotiate a revised settlement agreement that is finally approved by the Court, the pending litigation described above will continue. In the event the Settlement Agreement described above receives final approval, we do not believe that the terms of the Settlement Agreement would have a material impact on our consolidated financial statements. | |
We have also been informed that a number of regulatory agencies are investigating the incident, including the California Department of Managed Health Care ("DMHC"), the California Department of Insurance, the California Attorney General, the Massachusetts Office of Consumer Affairs and Business Regulation and the Office of Civil Rights of the U.S. Department of Health and Human Services. | |
Miscellaneous Proceedings | |
In the ordinary course of our business operations, we are subject to periodic reviews, investigations and audits by various federal and state regulatory agencies, including, without limitation, CMS, DMHC, the Office of Civil Rights of the U.S. Department of Health and Human Services and state departments of insurance, with respect to our compliance with a wide variety of rules and regulations applicable to our business, including, without limitation, HIPAA, rules relating to pre-authorization penalties, payment of out-of-network claims, timely review of grievances and appeals, and timely and accurate payment of claims, any one of which may result in remediation of certain claims, contract termination, the loss of licensure or the right to participate in certain programs, and the assessment of regulatory fines or penalties, which could be substantial. From time to time, we receive subpoenas and other requests for information from, and are subject to investigations by, such regulatory agencies, as well as from state attorneys general. There also continues to be heightened review by regulatory authorities of, and increased litigation regarding, the health care industry’s business practices, including, without limitation, information privacy, premium rate increases, utilization management, appeal and grievance processing, rescission of insurance coverage and claims payment practices. | |
In addition, in the ordinary course of our business operations, we are party to various other legal proceedings, including, without limitation, litigation arising out of our general business activities, such as contract disputes, employment litigation, wage and hour claims, including, without limitation, cases involving allegations of misclassification of employees and/or failure to pay for off-the-clock work, real estate and intellectual property claims, claims brought by members or providers seeking coverage or additional reimbursement for services allegedly rendered to our members, but which allegedly were denied, underpaid, not timely paid or not paid, and claims arising out of the acquisition or divestiture of various business units or other assets. We are also subject to claims relating to the performance of contractual obligations to providers, members, employer groups and others, including the alleged failure to properly pay claims and challenges to the manner in which we process claims, and claims alleging that we have engaged in unfair business practices. In addition, we are subject to claims relating to information security incidents and breaches, reinsurance agreements, rescission of coverage and other types of insurance coverage obligations and claims relating to the insurance industry in general. We are, and may be in the future, subject to class action lawsuits brought against various managed care organizations and other class action lawsuits. | |
We intend to vigorously defend ourselves against the miscellaneous legal and regulatory proceedings to which we are currently a party; however, these proceedings are subject to many uncertainties. In some of the cases pending against us, substantial non-economic or punitive damages are being sought. | |
Potential Settlements | |
We regularly evaluate legal proceedings and regulatory matters pending against us, including those described above in this Note 9, to determine if settlement of such matters would be in the best interests of the Company and its stockholders. The costs associated with any settlement of the various legal proceedings and regulatory matters to which we are or may be subject from time to time, including those described above in this Note 9, could be substantial and, in certain cases, could result in a significant earnings charge or impact on our cash flow in any particular quarter in which we enter into a settlement agreement and could have a material adverse effect on our financial condition, results of operations, cash flow and/or liquidity and may affect our reputation. |
StateSponsored_Health_Plans_Ra
State-Sponsored Health Plans Rate Settlement Agreement | 9 Months Ended |
Sep. 30, 2013 | |
State-Sponsored Health Plans Rate Settlement Agreement [Abstract] | ' |
State-Sponsored Health Plans Rate Settlement Agreement | ' |
STATE-SPONSORED HEALTH PLANS RATE SETTLEMENT AGREEMENT | |
On November 2, 2012, our wholly owned subsidiaries, Health Net of California, Inc. and Health Net Community Solutions, Inc., entered into a settlement agreement (the "Agreement") with DHCS to settle historical rate disputes with respect to our participation in the Medi-Cal program, for rate years prior to the 2011–2012 rate year. As part of the Agreement, DHCS agreed, among other things, to (1) an extension of all of our Medi-Cal managed care contracts existing as of the date of the Agreement for an additional five years from their then existing expiration dates; (2) retrospective premium adjustments on all of our state-sponsored health care programs, including Medi-Cal, Healthy Families, SPDs, our proposed participation in the dual eligibles demonstration portion of the California Coordinated Care Initiative that is expected to begin in 2014 and any potential future Medi-Cal expansion populations (our “state-sponsored health care programs”), which will be tracked in a settlement account as discussed in more detail below; and (3) compensate us should DHCS terminate any of our state-sponsored health care programs contracts early. | |
Effective January 1, 2013, the settlement account (the "Account") was established with an initial balance of zero. The balance in the Account is adjusted annually to reflect retrospective premium adjustments for each calendar year (referenced in the Agreement as a deficit or surplus). A deficit or surplus will result to the extent our actual pretax margin (as defined in the Agreement) on our state-sponsored health care programs is below or above a predetermined pretax margin target. The amount of any deficit or surplus is calculated as described in the Agreement. Cash settlement of the Account will occur on December 31, 2019, except that under certain circumstances the DHCS may extend the final settlement for up to three additional one-year periods (as may be extended, the "Term"). In addition, the DHCS will make an interim partial settlement payment to us if it terminates any of our state-sponsored health care programs contracts early. Upon expiration of the Term, if the Account is in a surplus position, then no monies are owed to either party. If the Account is in a deficit position, then DHCS shall pay the amount of the deficit to us. In no event, however, shall the amount paid by DHCS to us under the Agreement exceed $264 million or be less than an alternative minimum amount as defined in the Agreement. | |
We estimate and recognize the retrospective adjustments to premium revenue based upon experience to date under our state-sponsored health care programs contracts. As of September 30, 2013, we had calculated and recorded a deficit of $51.7 million, net of a valuation discount in the amount of $3.7 million (see Note 8), reflecting our estimated retrospective premium adjustment to the Account based on our actual pretax margin for the nine months ended September 30, 2013. The retrospective premium adjustment is recorded as an adjustment to premium revenue and other noncurrent assets. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. We had no checks outstanding, net of deposits as of September 30, 2013 and $23.8 million as of December 31, 2012. Checks outstanding, net of deposits are classified as accounts payable and other liabilities in the consolidated balance sheets and the changes are reflected in the line item net increase (decrease) in checks outstanding, net of deposits within the cash flows from financing activities in the consolidated statements of cash flows. | |||||||||||||||||
Investments | ' | ||||||||||||||||
Investments | |||||||||||||||||
Investments classified as available-for-sale, which consist primarily of debt securities, are stated at fair value. Unrealized gains and losses are excluded from earnings and reported as other comprehensive income, net of income tax effects. The cost of investments sold is determined in accordance with the specific identification method and realized gains and losses are included in net investment income. We analyze all debt investments that have unrealized losses for impairment consideration and assess the intent to sell such securities. If such intent exists, impaired securities are considered other-than-temporarily impaired. Management also assesses if we may be required to sell the debt investments prior to the recovery of amortized cost, which may also trigger an impairment charge. If securities are considered other-than-temporarily impaired based on intent or ability, we assess whether the amortized costs of the securities can be recovered. If management anticipates recovering an amount less than the amortized cost of the securities, an impairment charge is calculated based on the expected discounted cash flows of the securities. Any deficit between the amortized cost and the expected cash flows is recorded through earnings as a charge. All other temporary impairment changes are recorded through other comprehensive income. During the three and nine months ended September 30, 2013 and 2012, respectively, no losses were recognized from other-than-temporary impairments. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The estimated fair value amounts of cash equivalents, investments available-for-sale, premiums and other receivables, notes receivable and notes payable have been determined by using available market information and appropriate valuation methodologies. The carrying amounts of cash equivalents approximate fair value due to the short maturity of those instruments. Fair values for debt and equity securities are generally based upon quoted market prices. Where quoted market prices were not readily available, fair values were estimated using valuation methodologies based on available and observable market information. Such valuation methodologies include reviewing the value ascribed to the most recent financing, comparing the security with securities of publicly traded companies in a similar line of business, and reviewing the underlying financial performance including estimating discounted cash flows. The carrying value of premiums and other receivables, long-term notes receivable and nonmarketable securities approximates the fair value of such financial instruments. The fair value of notes payable is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt with the same remaining maturities. The fair value of our fixed-rate borrowings was $428.0 million and $424.0 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, the fair value of our variable-rate borrowings under our revolving credit facility was $100.0 million and $100.0 million, respectively. The fair value of our fixed-rate borrowings was determined using the quoted market price, which is a Level 1 input in the fair value hierarchy. The fair value of our variable-rate borrowings was estimated to equal the carrying value because the interest rates paid on these borrowings were based on prevailing market rates. Since the pricing inputs are other than quoted prices and fair value is determined using an income approach, our variable-rate borrowings are classified as a Level 2 in the fair value hierarchy. See Notes 7 and 8 for additional information regarding our financing arrangements and fair value measurements, respectively. | |||||||||||||||||
Health Plan Services Health Care Cost | ' | ||||||||||||||||
Health Plan Services Health Care Cost | |||||||||||||||||
The cost of health care services is recognized in the period in which services are provided and includes an estimate of the cost of services that have been incurred but not yet reported. Such costs include payments to primary care physicians, specialists, hospitals and outpatient care facilities, and the costs associated with managing the extent of such care. | |||||||||||||||||
Our health care cost can also include from time to time remediation of certain claims as a result of periodic reviews by various regulatory agencies. We estimate the amount of the provision for health care service costs incurred but not yet reported ("IBNR") in accordance with GAAP and using standard actuarial developmental methodologies based upon historical data including the period between the date services are rendered and the date claims are received and paid, denied claim activity, expected medical cost inflation, seasonality patterns and changes in membership, among other things. | |||||||||||||||||
Our IBNR best estimate also includes a provision for adverse deviation, which is an estimate for known environmental factors that are reasonably likely to affect the required level of IBNR reserves. This provision for adverse deviation is intended to capture the potential adverse development from known environmental factors such as our entry into new geographical markets, changes in our geographic or product mix, the introduction of new customer populations, variation in benefit utilization, disease outbreaks, changes in provider reimbursement, fluctuations in medical cost trend, variation in claim submission patterns and variation in claims processing speed and payment patterns, changes in technology that provide faster access to claims data or change the speed of adjudication and settlement of claims, variability in claim inventory levels, non-standard claim development, and/or exceptional situations that require judgmental adjustments in setting the reserves for claims. | |||||||||||||||||
We consistently apply our IBNR estimation methodology from period to period. Our IBNR best estimate is made on an accrual basis and adjusted in future periods as required. Any adjustments to the prior period estimates are included in the current period. As additional information becomes known to us, we adjust our assumptions accordingly to change our estimate of IBNR. Therefore, if moderately adverse conditions do not occur, evidenced by more complete claims information in the following period, then our prior period estimates will be revised downward, resulting in favorable development. However, any favorable prior period reserve development would increase current period net income only to the extent that the current period provision for adverse deviation is less than the benefit recognized from the prior period favorable development. If moderately adverse conditions occur and are more acute than we estimated, then our prior period estimates will be revised upward, resulting in unfavorable development, which would decrease current period net income. For the nine months ended September 30, 2013, we had $55.9 million in favorable reserve developments related to prior years. We believe this favorable development was primarily due to the absence of moderately adverse conditions. As part of our best estimate for IBNR, the provision for adverse deviation recorded as of September 30, 2013 was $52.9 million. The reserve developments related to prior years for the nine months ended September 30, 2013, when considered together with the provision for adverse deviation recorded as of September 30, 2013, did not have a material impact on our operating results or financial condition. For the nine months ended September 30, 2012, we had $32.8 million in unfavorable reserve developments related to prior years. We believe this unfavorable reserve development for the nine months ended September 30, 2012 was primarily due to significant delays in claims submissions for the fourth quarter of 2011 arising from issues related to a new billing format required by the Health Insurance Portability and Accountability Act of 1996 ("HIPAA") coupled with an unanticipated flattening of commercial trends. | |||||||||||||||||
The majority of the IBNR reserve balance held at each quarter-end is associated with the most recent months' incurred services because these are the services for which the fewest claims have been paid. The degree of uncertainty in the estimates of incurred claims is greater for the most recent months' incurred services. Revised estimates for prior periods are determined in each quarter based on the most recent updates of paid claims for prior periods. Estimates for service costs incurred but not yet reported are subject to the impact of changes in the regulatory environment, economic conditions, changes in claims trends, and numerous other factors. Given the inherent variability of such estimates, the actual liability could differ significantly from the amounts estimated. | |||||||||||||||||
Concentrations of Credit Risk | ' | ||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, investments and premiums receivable. All cash equivalents and investments are managed within established guidelines, which provide us diversity among issuers. Concentrations of credit risk with respect to premiums receivable are limited due to the large number of payers comprising our customer base. The federal government is the primary customer of our Government Contracts reportable segment with fees and premiums associated with this customer accounting for approximately 95% of our Government Contracts revenue. In addition, the federal government is a significant customer of our Western Region Operations reportable segment as a result of our contract with Centers for Medicare & Medicaid Services ("CMS") for coverage of Medicare-eligible individuals. Furthermore, all of our Medicaid revenue is currently derived from our participation in the state Medicaid program in California ("Medi-Cal") through our relationship with the State of California Department of Health Care Services ("DHCS"). As a result, DHCS is a significant customer of our Western Region Operations reportable segment. | |||||||||||||||||
Comprehensive Income | ' | ||||||||||||||||
Comprehensive Income | |||||||||||||||||
Comprehensive income includes all changes in stockholders’ equity (except those arising from transactions with stockholders) and includes net income (loss), net unrealized appreciation (depreciation) after tax on investments available-for-sale and prior service cost and net loss related to our defined benefit pension plan. | |||||||||||||||||
Our accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||
Unrealized Gains (Losses) on investments available-for-sale | Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (loss) | |||||||||||||||
Three Months Ended September 30: | (Dollars in millions) | ||||||||||||||||
Balance as of July 1, 2012 | $ | 19.6 | $ | (11.9 | ) | $ | 7.7 | ||||||||||
Other comprehensive income before reclassifications | 22.4 | — | 22.4 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2.8 | ) | 0.6 | (2.2 | ) | ||||||||||||
Other comprehensive income for the three months ended September 30, 2012 | 19.6 | 0.6 | 20.2 | ||||||||||||||
Balance as of September 30, 2012 | $ | 39.2 | $ | (11.3 | ) | $ | 27.9 | ||||||||||
Balance as of July 1, 2013 | $ | (25.4 | ) | $ | (10.2 | ) | $ | (35.6 | ) | ||||||||
Other comprehensive income before reclassifications | 0.7 | — | 0.7 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (0.2 | ) | 0.4 | 0.2 | |||||||||||||
Other comprehensive income for the three months ended September 30, 2013 | 0.5 | 0.4 | 0.9 | ||||||||||||||
Balance as of September 30, 2013 | $ | (24.9 | ) | $ | (9.8 | ) | $ | (34.7 | ) | ||||||||
Nine Months Ended September 30: | |||||||||||||||||
Balance as of January 1, 2012 | $ | 29.8 | $ | (13.2 | ) | $ | 16.6 | ||||||||||
Other comprehensive income before reclassifications | 28.7 | — | 28.7 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (19.3 | ) | 1.9 | (17.4 | ) | ||||||||||||
Other comprehensive income for the nine months ended September 30, 2012 | 9.4 | 1.9 | 11.3 | ||||||||||||||
Balance as of September 30, 2012 | $ | 39.2 | $ | (11.3 | ) | $ | 27.9 | ||||||||||
Balance as of January 1, 2013 | $ | 38 | $ | (11.0 | ) | $ | 27 | ||||||||||
Other comprehensive loss before reclassifications | (47.8 | ) | — | (47.8 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (15.1 | ) | 1.2 | (13.9 | ) | ||||||||||||
Other comprehensive (loss) income for the nine months ended September 30, 2013 | (62.9 | ) | 1.2 | (61.7 | ) | ||||||||||||
Balance as of September 30, 2013 | $ | (24.9 | ) | $ | (9.8 | ) | $ | (34.7 | ) | ||||||||
The following table shows reclassifications out of accumulated other comprehensive income and the affected line items in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Affected line item in the Consolidated Statements of Operations | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Unrealized gains on investments available-for-sale | $ | 0.3 | $ | 4.3 | $ | 23.3 | $ | 29.7 | Net investment income | ||||||||
0.3 | 4.3 | 23.3 | 29.7 | Total before tax | |||||||||||||
0.1 | 1.5 | 8.2 | 10.4 | Tax expense | |||||||||||||
0.2 | 2.8 | 15.1 | 19.3 | Net of tax | |||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
Prior-service cost | (0.1 | ) | — | (0.1 | ) | (0.1 | ) | (a) | |||||||||
Actuarial gains (losses) | (0.6 | ) | (1.0 | ) | (1.9 | ) | (3.0 | ) | (a) | ||||||||
(0.7 | ) | (1.0 | ) | (2.0 | ) | (3.1 | ) | Total before tax | |||||||||
(0.3 | ) | (0.4 | ) | (0.8 | ) | (1.2 | ) | Tax benefit | |||||||||
(0.4 | ) | (0.6 | ) | (1.2 | ) | (1.9 | ) | Net of tax | |||||||||
Total reclassifications for the period | $ | (0.2 | ) | $ | 2.2 | $ | 13.9 | $ | 17.4 | Net of tax | |||||||
_________ | |||||||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic earnings per share excludes dilution and reflects net income divided by the weighted average shares of common stock outstanding during the periods presented. Diluted earnings per share is based upon the weighted average shares of common stock and dilutive common stock equivalents (this reflects the potential dilution that could occur if stock options were exercised and restricted stock units ("RSUs") and performance share units ("PSUs") were vested) outstanding during the periods presented. | |||||||||||||||||
The inclusion or exclusion of common stock equivalents arising from stock options, RSUs and PSUs in the computation of diluted earnings per share is determined using the treasury stock method. For the three and nine months ended September 30, 2013, respectively, 1,009,000 shares and 903,000 shares of dilutive common stock equivalents were outstanding and were included in the computation of diluted earnings per share. For the three and nine months ended September 30, 2012, respectively, 432,000 shares and 996,000 shares of dilutive common stock equivalents were outstanding and were included in the computation of diluted earnings per share. | |||||||||||||||||
For the three and nine months ended September 30, 2013, respectively, an aggregate of 812,000 shares and 1,019,000 shares of common stock equivalents were considered anti-dilutive and were not included in the computation of diluted earnings per share. For the three and nine months ended September 30, 2012, respectively, an aggregate of 4,342,000 shares and 1,819,000 shares of common stock equivalents were considered anti-dilutive and were not included in the computation of diluted earnings per share. Stock options expire at various times through February 2019. | |||||||||||||||||
In May 2011, our Board of Directors authorized a stock repurchase program for the repurchase of up to $300 million of our outstanding common stock (our "stock repurchase program"). On March 8, 2012, our Board of Directors approved a $323.7 million increase to our stock repurchase program. As of December 31, 2012, the remaining authorization under our stock repurchase program was $350.0 million. The remaining authorization under our stock repurchase program as of September 30, 2013 was $280.0 million. See Note 6 for more information regarding our stock repurchase program. | |||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||
We performed our annual impairment test on our goodwill and other intangible assets as of June 30, 2013 for our Western Region Operations reporting unit and also re-evaluated the useful lives of our other intangible assets. No goodwill impairment was identified. We also determined that the estimated useful lives of our other intangible assets properly reflected the current estimated useful lives. | |||||||||||||||||
The carrying amount of goodwill by reporting unit is as follows: | |||||||||||||||||
Western | Total | ||||||||||||||||
Region | |||||||||||||||||
Operations | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance as of December 31, 2012 | $ | 565.9 | $ | 565.9 | |||||||||||||
Balance as of September 30, 2013 | $ | 565.9 | $ | 565.9 | |||||||||||||
Due to the many variables inherent in the estimation of a business’s fair value and the relative size of recorded goodwill, changes in assumptions may have a material effect on the results of our impairment test. The discounted cash flows and market participant valuations (and the resulting fair value estimates of the Western Region Operations reporting unit) are sensitive to changes in assumptions including, among others, certain valuation and market assumptions, the Company’s ability to adequately incorporate into its premium rates the future costs of premium-based assessments imposed by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the "ACA"), and assumptions related to the achievement of certain administrative cost reductions and the profitable implementation of California's Coordinated Care Initiative, which includes the dual eligibles demonstration. Changes to any of these assumptions could cause the fair value of our Western Region Operations reporting unit to be below its carrying value. As of June 30, 2013 and June 30, 2012, the ratio of the fair value of our Western Region Operations reporting unit to its carrying value was approximately 149% and 115%, respectively. | |||||||||||||||||
The intangible assets that continue to be subject to amortization using the straight-line method over their estimated lives are as follows: | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Balance | Average Life | ||||||||||||||
Amount | (in years) | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
As of September 30, 2013: | |||||||||||||||||
Provider networks | $ | 40.5 | $ | (35.4 | ) | $ | 5.1 | 19.4 | |||||||||
Customer relationships and other | 29.5 | (19.9 | ) | 9.6 | 11.1 | ||||||||||||
$ | 70 | $ | (55.3 | ) | $ | 14.7 | |||||||||||
As of December 31, 2012: | |||||||||||||||||
Provider networks | $ | 40.5 | $ | (34.6 | ) | $ | 5.9 | 19.4 | |||||||||
Customer relationships and other | 29.5 | (18.1 | ) | 11.4 | 11.1 | ||||||||||||
$ | 70 | $ | (52.7 | ) | $ | 17.3 | |||||||||||
Estimated annual pretax amortization expense for other intangible assets for each of the next five years ending December 31 is as follows (dollars in millions): | |||||||||||||||||
Year | Amount | ||||||||||||||||
2013 | $ | 3.4 | |||||||||||||||
2014 | 2.8 | ||||||||||||||||
2015 | 2.6 | ||||||||||||||||
2016 | 2 | ||||||||||||||||
2017 | 2 | ||||||||||||||||
Restricted Assets | ' | ||||||||||||||||
Restricted Assets | |||||||||||||||||
We and our consolidated subsidiaries are required to set aside certain funds that may only be used for certain purposes pursuant to state regulatory requirements. We have discretion as to whether we invest such funds in cash and cash equivalents or other investments. As of September 30, 2013 and December 31, 2012, the restricted cash and cash equivalents balances totaled $1.7 million and $0.8 million, respectively, and are included in other noncurrent assets. Investment securities held by trustees or agencies were $26.6 million and $25.5 million as of September 30, 2013 and December 31, 2012, respectively, and are included in investments available-for-sale. | |||||||||||||||||
Divested Operations and Services | ' | ||||||||||||||||
Divested Operations and Services | |||||||||||||||||
Divested operations and services revenues and expenses include any revenues and expenses related to the run-out of our business that was sold in connection with the Northeast Sale (as defined below) on December 11, 2009, including items related to our performance under related administrative services and/or claims servicing agreements, and transition-related revenues and expenses related to the sale of our Medicare PDP business on April 1, 2012. The "Northeast Sale" refers to the sale of all of the outstanding shares of capital stock of our health plan subsidiaries that were domiciled and/or had conducted businesses in Connecticut, New Jersey, New York and Bermuda to an affiliate of UnitedHealth Group Incorporated ("United"), and includes the acquisition by United of membership renewal rights for certain commercial health care business conducted by our subsidiary, Health Net Life Insurance Company ("HNL") in the states of Connecticut and New Jersey. As of December 31, 2012, we had substantially completed the administration and run-out of our divested businesses. See Note 3 for additional information regarding the sale of our Medicare PDP business. | |||||||||||||||||
Medicaid/Medi-Cal Rate Adjustment , Medi-Cal Rate Reduction and Medicaid Premium Taxes | ' | ||||||||||||||||
Medicaid/Medi-Cal Rate Adjustment | |||||||||||||||||
Our revenue from the Medi-Cal program, including seniors and persons with disabilities ("SPD") programs, and other state-sponsored health programs are subject to certain retroactive rate adjustments based on expected and actual health care cost. For the three and nine months ended September 30, 2013, we recognized $32.1 million and $74.3 million, respectively, of premium revenues as a result of retroactive rate adjustments for our SPD and non-SPD members for periods prior to 2013. Retroactive rate adjustments for our SPD and non-SPD members were not material for the three and nine months ended September 30, 2012. | |||||||||||||||||
Medi-Cal Rate Reduction | |||||||||||||||||
In October 2011, CMS approved certain elements of California's 2011-2012 budget proposals to reduce Medi-Cal provider reimbursement rates as authorized by California Assembly Bill 97 (“AB 97”). The elements approved by CMS include a 10 percent reduction in reimbursement rates for a number of providers. DHCS preliminarily indicated that the Medi-Cal managed care rate reductions could be effective retroactive to July 1, 2011. However, a series of preliminary injunctions arising from various legal challenges have prevented the implementation of AB 97, and no such reductions have been made as of September 30, 2013. | |||||||||||||||||
In December 2012, the United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) issued a decision that reversed the preliminary injunctions against the implementation of AB 97. The Ninth Circuit subsequently denied a motion by the plaintiffs for an en banc hearing and a petition to stay implementation of AB 97 pending appeal to the U.S. Supreme Court. Consequently, after the Ninth Circuit's ruling and as of September 30, 2013, there was no legal bar to the implementation of AB 97. As a result, the reimbursement rate reductions authorized by AB 97 are reflected in California's 2013-2014 budget proposal, which was recently passed by the legislature and signed into law by Governor Brown. The State has not formally determined the effective date for the implementation of AB 97, and the plaintiffs in the AB 97 legal actions may still file a petition to the U.S. Supreme Court to review the Ninth Circuit's ruling. In any case, even if the reductions are implemented as currently authorized, they would be applied to Medi-Cal managed care plans only on a prospective basis, and the impact of such reductions could be limited since they would need to be reconciled with minimum payment rates for primary care physicians dictated by the ACA for 2013 and 2014. Due to these uncertainties, we cannot reasonably estimate the range of reductions in premiums and/or related health care cost recoveries, if any, that may result in connection with AB 97. | |||||||||||||||||
Medicaid Premium Taxes | |||||||||||||||||
On June 27, 2013, the State of California reinstated premium taxes retroactive to July 1, 2012 for plans participating in Medi-Cal. As a result of this reinstatement, we recorded $25.6 million in premium taxes, primarily related to 2013, as general and administrative expense for the three months ended September 30, 2013. For the nine months ended September 30, 2013, we recorded $68.4 million, including $18.8 million attributable to periods prior to 2013, as general and administrative expense. In addition, the State of California increased Medicaid premium revenues in an amount equal to the increase in the premium taxes. As a result, we recorded $25.6 million and $68.4 million in health plan services premiums for the three and nine months ended September 30, 2013, respectively. These Medicaid premium taxes are currently authorized by the State of California through July 1, 2016. | |||||||||||||||||
CMS Risk Factor Adjustments | ' | ||||||||||||||||
CMS Risk Factor Adjustments | |||||||||||||||||
We have an arrangement with CMS that relates to certain of our Medicare products and pursuant to which periodic changes in our risk factor adjustment scores for certain diagnostic codes result in changes to our health plan services premium revenues. We recognize such changes when the amounts become determinable and the collectability is reasonably assured. Because the recorded revenue is based on our best estimate at the time, the actual payment we receive from CMS for risk adjustment reimbursement settlements may be materially different than the amounts we have initially recognized on our financial statements. The change in our estimate for the risk adjustment revenue in each of the three and nine months ended September 30, 2013 and 2012 was not significant. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
Recently Issued Accounting Pronouncement | |||||||||||||||||
Effective January 1, 2014, we will adopt new accounting guidance relating to the recognition and income statement reporting of any mandated fees to be paid to the federal government by health insurers, pursuant to the Accounting Standards Update ("ASU") No. 2011-06, issued by the Financial Accounting Standards Board ("FASB") in July 2011. This guidance will apply primarily to new fees enacted in the ACA. The mandated fees are expected to be material, and this new accounting guidance will result in the recognition of this expense on a straight-line basis beginning in 2014. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ' | ||||||||||||||||
Our accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||
Unrealized Gains (Losses) on investments available-for-sale | Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (loss) | |||||||||||||||
Three Months Ended September 30: | (Dollars in millions) | ||||||||||||||||
Balance as of July 1, 2012 | $ | 19.6 | $ | (11.9 | ) | $ | 7.7 | ||||||||||
Other comprehensive income before reclassifications | 22.4 | — | 22.4 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2.8 | ) | 0.6 | (2.2 | ) | ||||||||||||
Other comprehensive income for the three months ended September 30, 2012 | 19.6 | 0.6 | 20.2 | ||||||||||||||
Balance as of September 30, 2012 | $ | 39.2 | $ | (11.3 | ) | $ | 27.9 | ||||||||||
Balance as of July 1, 2013 | $ | (25.4 | ) | $ | (10.2 | ) | $ | (35.6 | ) | ||||||||
Other comprehensive income before reclassifications | 0.7 | — | 0.7 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (0.2 | ) | 0.4 | 0.2 | |||||||||||||
Other comprehensive income for the three months ended September 30, 2013 | 0.5 | 0.4 | 0.9 | ||||||||||||||
Balance as of September 30, 2013 | $ | (24.9 | ) | $ | (9.8 | ) | $ | (34.7 | ) | ||||||||
Nine Months Ended September 30: | |||||||||||||||||
Balance as of January 1, 2012 | $ | 29.8 | $ | (13.2 | ) | $ | 16.6 | ||||||||||
Other comprehensive income before reclassifications | 28.7 | — | 28.7 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (19.3 | ) | 1.9 | (17.4 | ) | ||||||||||||
Other comprehensive income for the nine months ended September 30, 2012 | 9.4 | 1.9 | 11.3 | ||||||||||||||
Balance as of September 30, 2012 | $ | 39.2 | $ | (11.3 | ) | $ | 27.9 | ||||||||||
Balance as of January 1, 2013 | $ | 38 | $ | (11.0 | ) | $ | 27 | ||||||||||
Other comprehensive loss before reclassifications | (47.8 | ) | — | (47.8 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (15.1 | ) | 1.2 | (13.9 | ) | ||||||||||||
Other comprehensive (loss) income for the nine months ended September 30, 2013 | (62.9 | ) | 1.2 | (61.7 | ) | ||||||||||||
Balance as of September 30, 2013 | $ | (24.9 | ) | $ | (9.8 | ) | $ | (34.7 | ) | ||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The following table shows reclassifications out of accumulated other comprehensive income and the affected line items in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Affected line item in the Consolidated Statements of Operations | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Unrealized gains on investments available-for-sale | $ | 0.3 | $ | 4.3 | $ | 23.3 | $ | 29.7 | Net investment income | ||||||||
0.3 | 4.3 | 23.3 | 29.7 | Total before tax | |||||||||||||
0.1 | 1.5 | 8.2 | 10.4 | Tax expense | |||||||||||||
0.2 | 2.8 | 15.1 | 19.3 | Net of tax | |||||||||||||
Amortization of defined benefit pension items: | |||||||||||||||||
Prior-service cost | (0.1 | ) | — | (0.1 | ) | (0.1 | ) | (a) | |||||||||
Actuarial gains (losses) | (0.6 | ) | (1.0 | ) | (1.9 | ) | (3.0 | ) | (a) | ||||||||
(0.7 | ) | (1.0 | ) | (2.0 | ) | (3.1 | ) | Total before tax | |||||||||
(0.3 | ) | (0.4 | ) | (0.8 | ) | (1.2 | ) | Tax benefit | |||||||||
(0.4 | ) | (0.6 | ) | (1.2 | ) | (1.9 | ) | Net of tax | |||||||||
Total reclassifications for the period | $ | (0.2 | ) | $ | 2.2 | $ | 13.9 | $ | 17.4 | Net of tax | |||||||
_________ | |||||||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. | ||||||||||||||||
Carrying Amount of Goodwill | ' | ||||||||||||||||
The carrying amount of goodwill by reporting unit is as follows: | |||||||||||||||||
Western | Total | ||||||||||||||||
Region | |||||||||||||||||
Operations | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance as of December 31, 2012 | $ | 565.9 | $ | 565.9 | |||||||||||||
Balance as of September 30, 2013 | $ | 565.9 | $ | 565.9 | |||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||
The intangible assets that continue to be subject to amortization using the straight-line method over their estimated lives are as follows: | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Balance | Average Life | ||||||||||||||
Amount | (in years) | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
As of September 30, 2013: | |||||||||||||||||
Provider networks | $ | 40.5 | $ | (35.4 | ) | $ | 5.1 | 19.4 | |||||||||
Customer relationships and other | 29.5 | (19.9 | ) | 9.6 | 11.1 | ||||||||||||
$ | 70 | $ | (55.3 | ) | $ | 14.7 | |||||||||||
As of December 31, 2012: | |||||||||||||||||
Provider networks | $ | 40.5 | $ | (34.6 | ) | $ | 5.9 | 19.4 | |||||||||
Customer relationships and other | 29.5 | (18.1 | ) | 11.4 | 11.1 | ||||||||||||
$ | 70 | $ | (52.7 | ) | $ | 17.3 | |||||||||||
Estimated Annual Pretax Amortization Expense For Other Intangible Assets | ' | ||||||||||||||||
Estimated annual pretax amortization expense for other intangible assets for each of the next five years ending December 31 is as follows (dollars in millions): | |||||||||||||||||
Year | Amount | ||||||||||||||||
2013 | $ | 3.4 | |||||||||||||||
2014 | 2.8 | ||||||||||||||||
2015 | 2.6 | ||||||||||||||||
2016 | 2 | ||||||||||||||||
2017 | 2 | ||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting Information, Additional Information [Abstract] | ' | |||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
Our segment information for the three and nine months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||||||||
Western Region | Government | Divested Operations and Services | Corporate/Other/ | Total | ||||||||||||||||
Operations | Contracts | Eliminations | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||
Revenues from external sources | $ | 2,625.70 | $ | 149.3 | $ | — | $ | — | $ | 2,775.00 | ||||||||||
Intersegment revenues | 2.7 | — | — | (2.7 | ) | — | ||||||||||||||
Segment pretax income (loss) | 85.2 | 23.5 | — | (0.1 | ) | 108.6 | ||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||
Revenues from external sources | $ | 2,596.90 | $ | 169.8 | $ | 12.9 | $ | — | $ | 2,779.60 | ||||||||||
Intersegment revenues | 2.7 | — | — | (2.7 | ) | — | ||||||||||||||
Segment pretax income (loss) | 20.2 | 21.1 | (4.7 | ) | (7.2 | ) | 29.4 | |||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Revenues from external sources | $ | 7,886.70 | $ | 423.8 | $ | — | $ | — | $ | 8,310.50 | ||||||||||
Intersegment revenues | 8.4 | — | — | (8.4 | ) | — | ||||||||||||||
Segment pretax income (loss) | 204.3 | 50.6 | — | (13.0 | ) | 241.9 | ||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Revenues from external sources | $ | 7,898.20 | $ | 527.4 | $ | 25.7 | $ | — | $ | 8,451.30 | ||||||||||
Intersegment revenues | 8.3 | — | — | (8.3 | ) | — | ||||||||||||||
Segment pretax income (loss) | 12.6 | 66.6 | (34.4 | ) | (21.6 | ) | 23.2 | |||||||||||||
Premium Revenue by Line of Business | ' | |||||||||||||||||||
Our health plan services premium revenue by line of business is as follows: | ||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Commercial premium revenue | $ | 1,279.80 | $ | 1,420.40 | $ | 3,903.80 | $ | 4,310.00 | ||||||||||||
Medicare premium revenue | 685.4 | 682.9 | 2,080.30 | 2,089.40 | ||||||||||||||||
Medicaid premium revenue | 641.6 | 475.4 | 1,833.60 | 1,419.20 | ||||||||||||||||
Total health plan services premiums | $ | 2,606.80 | $ | 2,578.70 | $ | 7,817.70 | $ | 7,818.60 | ||||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||||
Fair Value of Investments Available-for-Sale | ' | ||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the amortized cost, gross unrealized holding gains and losses, and fair value of our current investments available-for-sale and our investments available-for-sale-noncurrent, after giving effect to other-than-temporary impairments, were as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Carrying | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Asset-backed securities | $ | 410.1 | $ | 3.9 | $ | (6.6 | ) | $ | 407.4 | ||||||||||||||||
U.S. government and agencies | 26.5 | — | — | 26.5 | |||||||||||||||||||||
Obligations of states and other political subdivisions | 741.1 | 6.4 | (28.3 | ) | 719.2 | ||||||||||||||||||||
Corporate debt securities | 433.4 | 3.3 | (9.8 | ) | 426.9 | ||||||||||||||||||||
$ | 1,611.10 | $ | 13.6 | $ | (44.7 | ) | $ | 1,580.00 | |||||||||||||||||
Noncurrent: | |||||||||||||||||||||||||
Asset-backed securities | $ | 0.8 | $ | — | $ | (0.1 | ) | $ | 0.7 | ||||||||||||||||
Obligations of states and other political subdivisions | 48.9 | — | (6.0 | ) | 42.9 | ||||||||||||||||||||
Corporate debt securities | 10.4 | — | (1.4 | ) | 9 | ||||||||||||||||||||
$ | 60.1 | $ | — | $ | (7.5 | ) | $ | 52.6 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Carrying | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Asset-backed securities | $ | 499.7 | $ | 19.6 | $ | (0.2 | ) | $ | 519.1 | ||||||||||||||||
U.S. government and agencies | 25.9 | — | — | 25.9 | |||||||||||||||||||||
Obligations of states and other political subdivisions | 819.9 | 24.2 | (2.0 | ) | 842.1 | ||||||||||||||||||||
Corporate debt securities | 408.4 | 17.5 | (0.5 | ) | 425.4 | ||||||||||||||||||||
$ | 1,753.90 | $ | 61.3 | $ | (2.7 | ) | $ | 1,812.50 | |||||||||||||||||
Available-for-Sale Current Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||
As of September 30, 2013, the contractual maturities of our current investments available-for-sale and our investments available-for-sale-noncurrent were as follows: | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
Current: | (Dollars in millions) | ||||||||||||||||||||||||
Due in one year or less | $ | 42.5 | $ | 42.8 | |||||||||||||||||||||
Due after one year through five years | 281.6 | 284.1 | |||||||||||||||||||||||
Due after five years through ten years | 442.8 | 434.9 | |||||||||||||||||||||||
Due after ten years | 434.1 | 410.8 | |||||||||||||||||||||||
Asset-backed securities | 410.1 | 407.4 | |||||||||||||||||||||||
Total current investments available-for-sale | $ | 1,611.10 | $ | 1,580.00 | |||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
Noncurrent: | (Dollars in millions) | ||||||||||||||||||||||||
Due after one year through five years | $ | 1 | $ | 0.8 | |||||||||||||||||||||
Due after five years through ten years | 9.5 | 8.3 | |||||||||||||||||||||||
Due after ten years | 48.8 | 42.8 | |||||||||||||||||||||||
Asset-backed securities | 0.8 | 0.7 | |||||||||||||||||||||||
Total noncurrent investments available-for-sale | $ | 60.1 | $ | 52.6 | |||||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||||||||||||||||
The following table shows our current investments' fair values and gross unrealized losses for individual securities that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Asset-backed securities | $ | 232.8 | $ | (6.2 | ) | $ | 9.1 | $ | (0.4 | ) | $ | 241.9 | $ | (6.6 | ) | ||||||||||
Obligations of states and other political subdivisions | 542.4 | (28.3 | ) | 0.2 | — | 542.6 | (28.3 | ) | |||||||||||||||||
Corporate debt securities | 253.3 | (9.6 | ) | 2.5 | (0.2 | ) | 255.8 | (9.8 | ) | ||||||||||||||||
$ | 1,028.50 | $ | (44.1 | ) | $ | 11.8 | $ | (0.6 | ) | $ | 1,040.30 | $ | (44.7 | ) | |||||||||||
The following table shows our noncurrent investments' fair values and gross unrealized losses for individual securities that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | — | $ | 0.7 | $ | (0.1 | ) | $ | 0.7 | $ | (0.1 | ) | |||||||||||
Obligations of states and other political subdivisions | 42.9 | (6.0 | ) | — | — | 42.9 | (6.0 | ) | |||||||||||||||||
Corporate debt securities | 9 | (1.4 | ) | — | — | 9 | (1.4 | ) | |||||||||||||||||
$ | 51.9 | $ | (7.4 | ) | $ | 0.7 | $ | (0.1 | ) | $ | 52.6 | $ | (7.5 | ) | |||||||||||
The following table shows our current investments’ fair values and gross unrealized losses for individual securities that have been in a continuous loss position through December 31, 2012: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Asset-backed securities | $ | 54.9 | $ | (0.2 | ) | $ | 0.1 | $ | — | $ | 55 | $ | (0.2 | ) | |||||||||||
U.S. government and agencies | 10.1 | — | — | — | 10.1 | — | |||||||||||||||||||
Obligations of states and other political subdivisions | 192.1 | (2.0 | ) | 0.2 | — | 192.3 | (2.0 | ) | |||||||||||||||||
Corporate debt securities | 45.9 | (0.5 | ) | — | — | 45.9 | (0.5 | ) | |||||||||||||||||
$ | 303 | $ | (2.7 | ) | $ | 0.3 | $ | — | $ | 303.3 | $ | (2.7 | ) | ||||||||||||
Number of Securities Included in Loss Position of Current Investments | ' | ||||||||||||||||||||||||
The following table shows the number of our individual securities-current that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than | 12 Months | Total | |||||||||||||||||||||||
12 Months | or More | ||||||||||||||||||||||||
Asset-backed securities | 101 | 7 | 108 | ||||||||||||||||||||||
Obligations of states and other political subdivisions | 237 | 1 | 238 | ||||||||||||||||||||||
Corporate debt securities | 213 | 3 | 216 | ||||||||||||||||||||||
551 | 11 | 562 | |||||||||||||||||||||||
The following table shows the number of our individual securities-noncurrent that have been in a continuous loss position through September 30, 2013: | |||||||||||||||||||||||||
Less than | 12 Months | Total | |||||||||||||||||||||||
12 Months | or More | ||||||||||||||||||||||||
Asset-backed securities | — | 1 | 1 | ||||||||||||||||||||||
Obligations of states and other political subdivisions | 18 | — | 18 | ||||||||||||||||||||||
Corporate debt securities | 9 | — | 9 | ||||||||||||||||||||||
27 | 1 | 28 | |||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of assets and liabilities measured on recurring basis | ' | |||||||||||||||||||||||||||
The following tables present information about our assets and liabilities measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012, and indicate the fair value hierarchy of the valuation techniques utilized by us to determine such fair value (dollars in millions): | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 2- | Level 3 | Total | ||||||||||||||||||||||||
noncurrent | ||||||||||||||||||||||||||||
As of September 30, 2013: | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 686.1 | $ | — | $ | — | $ | — | $ | 686.1 | ||||||||||||||||||
Investments—available-for-sale | ||||||||||||||||||||||||||||
Asset-backed debt securities: | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | — | $ | 208.6 | $ | — | $ | — | $ | 208.6 | ||||||||||||||||||
Commercial mortgage-backed securities | — | 156.8 | 0.7 | — | 157.5 | |||||||||||||||||||||||
Other asset-backed securities | — | 42 | — | — | 42 | |||||||||||||||||||||||
U.S. government and agencies: | ||||||||||||||||||||||||||||
U.S. Treasury securities | 26.5 | — | — | — | 26.5 | |||||||||||||||||||||||
U.S. Agency securities | — | — | — | — | — | |||||||||||||||||||||||
Obligations of states and other political subdivisions | — | 719.2 | 42.9 | — | 762.1 | |||||||||||||||||||||||
Corporate debt securities | — | 426.9 | 9 | — | 435.9 | |||||||||||||||||||||||
Total investments at fair value | $ | 26.5 | $ | 1,553.50 | $ | 52.6 | $ | — | $ | 1,632.60 | ||||||||||||||||||
Embedded contractual derivative | — | — | — | 12.7 | 12.7 | |||||||||||||||||||||||
State-sponsored health plans settlement account deficit | — | — | — | 51.7 | 51.7 | |||||||||||||||||||||||
Total assets at fair value | $ | 712.6 | $ | 1,553.50 | $ | 52.6 | $ | 64.4 | $ | 2,383.10 | ||||||||||||||||||
Level 3 | ||||||||||||||||||||||||||||
As of September 30, 2013: | ||||||||||||||||||||||||||||
Liability: | ||||||||||||||||||||||||||||
Embedded contractual derivative | $ | 0.7 | ||||||||||||||||||||||||||
Total liability at fair value | $ | 0.7 | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 2- | Level 3 | Total | ||||||||||||||||||||||||
noncurrent | ||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 340.1 | $ | — | $ | — | $ | — | $ | 340.1 | ||||||||||||||||||
Investments—available-for-sale | ||||||||||||||||||||||||||||
Asset-backed debt securities: | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | — | $ | 272.4 | $ | — | $ | — | $ | 272.4 | ||||||||||||||||||
Commercial mortgage-backed securities | — | 223.1 | — | — | 223.1 | |||||||||||||||||||||||
Other asset-backed securities | — | 23.6 | — | — | 23.6 | |||||||||||||||||||||||
U.S. government and agencies: | ||||||||||||||||||||||||||||
U.S. Treasury securities | 25.9 | — | — | — | 25.9 | |||||||||||||||||||||||
U.S. Agency securities | — | — | — | — | — | |||||||||||||||||||||||
Obligations of states and other political subdivisions | — | 841.9 | — | 0.2 | 842.1 | |||||||||||||||||||||||
Corporate debt securities | — | 425.4 | — | — | 425.4 | |||||||||||||||||||||||
Total investments at fair value | $ | 25.9 | $ | 1,786.40 | $ | — | $ | 0.2 | $ | 1,812.50 | ||||||||||||||||||
Embedded contractual derivative | — | — | — | 11.2 | 11.2 | |||||||||||||||||||||||
Total assets at fair value | $ | 366 | $ | 1,786.40 | $ | — | $ | 11.4 | $ | 2,163.80 | ||||||||||||||||||
Level 3 | ||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||
Liability: | ||||||||||||||||||||||||||||
Embedded contractual derivative | $ | 3.2 | ||||||||||||||||||||||||||
Total liability at fair value | $ | 3.2 | ||||||||||||||||||||||||||
Changes in the Balances of Level 3 Financial Assets on Recurring Basis | ' | |||||||||||||||||||||||||||
The changes in the balances of Level 3 financial assets for the three months ended September 30, 2013 and 2012 were as follows (dollars in millions): | ||||||||||||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Available-For-Sale Investments | Embedded Contractual Derivative | State-Sponsored Health Plans Settlement Account Deficit | Total | Available-For-Sale Investments | Embedded Contractual Derivative | Total | ||||||||||||||||||||||
Opening balance | $ | — | $ | 10.8 | $ | 35.4 | $ | 46.2 | $ | 0.2 | $ | 15 | $ | 15.2 | ||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total gains or losses for the period: | ||||||||||||||||||||||||||||
Realized in net income | — | 1.9 | 16.3 | 18.2 | — | (7.8 | ) | (7.8 | ) | |||||||||||||||||||
Unrealized in accumulated other comprehensive income | — | — | — | — | — | — | — | |||||||||||||||||||||
Purchases, issues, sales and settlements: | ||||||||||||||||||||||||||||
Purchases/additions | — | — | — | — | — | — | — | |||||||||||||||||||||
Issues | — | — | — | — | — | — | — | |||||||||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Settlements | — | — | — | — | — | — | ||||||||||||||||||||||
Closing balance | $ | — | $ | 12.7 | $ | 51.7 | $ | 64.4 | $ | 0.2 | $ | 7.2 | $ | 7.4 | ||||||||||||||
Change in unrealized gains (losses) included in net income for assets held at the end of the reporting period | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
The changes in the balances of Level 3 financial assets for the nine months ended September 30, 2013 and 2012 were as follows (dollars in millions): | ||||||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Available-For-Sale Investments | Embedded Contractual Derivative | State-Sponsored Health Plans Settlement Account Deficit | Total | Available-For-Sale Investments | Embedded Contractual Derivative | Total | ||||||||||||||||||||||
Opening balance | $ | 0.2 | $ | 11.2 | $ | — | $ | 11.4 | $ | 0.2 | $ | 5.3 | $ | 5.5 | ||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total gains or losses for the period: | ||||||||||||||||||||||||||||
Realized in net income | — | 1.5 | 51.7 | 53.2 | — | 1.9 | 1.9 | |||||||||||||||||||||
Unrealized in accumulated other comprehensive income | — | — | — | — | — | — | — | |||||||||||||||||||||
Purchases, issues, sales and settlements: | ||||||||||||||||||||||||||||
Purchases/additions | — | — | — | — | — | — | — | |||||||||||||||||||||
Issues | — | — | — | — | — | — | — | |||||||||||||||||||||
Sales | (0.2 | ) | — | — | (0.2 | ) | — | — | — | |||||||||||||||||||
Settlements | — | — | — | — | — | — | — | |||||||||||||||||||||
Closing balance | $ | — | $ | 12.7 | $ | 51.7 | $ | 64.4 | $ | 0.2 | $ | 7.2 | $ | 7.4 | ||||||||||||||
Change in unrealized gains (losses) included in net income for assets held at the end of the reporting period | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Changes in the Balances of Level 3 Financial Liabilities on Recurring Basis | ' | |||||||||||||||||||||||||||
The changes in the balance of the Level 3 financial liability for the three and nine months ended September, 2013 were as follows (dollars in millions): | ||||||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | |||||||||||||||||||||||||||
Embedded Contractual Derivative | ||||||||||||||||||||||||||||
Opening balance, July 1 and January 1 | $ | 4.8 | $ | 3.2 | ||||||||||||||||||||||||
Transfers into Level 3 | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | ||||||||||||||||||||||||||
Total gains or losses for the period: | ||||||||||||||||||||||||||||
Realized in net income | (4.1 | ) | (2.5 | ) | ||||||||||||||||||||||||
Unrealized in accumulated other comprehensive income | — | — | ||||||||||||||||||||||||||
Purchases, issues, sales and settlements: | ||||||||||||||||||||||||||||
Purchases | — | — | ||||||||||||||||||||||||||
Issues | — | — | ||||||||||||||||||||||||||
Sales | — | — | ||||||||||||||||||||||||||
Settlements | — | — | ||||||||||||||||||||||||||
Closing balance | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | ' | |||||||||||||||||||||||||||
The following table presents information about financial assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2012 and indicates the fair value hierarchy of the valuation techniques utilized by us to determine such fair value (dollars in millions): | ||||||||||||||||||||||||||||
As of December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Lease impairment obligation | $ | — | $ | — | $ | 7.4 | $ | 7.4 | ||||||||||||||||||||
Quantitative information about level 3 assets and liabilities fair value measurements | ' | |||||||||||||||||||||||||||
The following tables present quantitative information about Level 3 Fair Value Measurements as of September 30, 2013 and December 31, 2012 (dollars in millions): | ||||||||||||||||||||||||||||
Fair Value as of | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
Embedded contractual derivative asset | $ | 12.7 | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | -5.34 | % | — | 7.91% | -0.69% | |||||||||||||||||||
National Health Care Expenditures | -0.55 | % | — | 7.04% | -3.35% | |||||||||||||||||||||||
Embedded contractual derivative liability | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | 2.59 | % | — | 6.10% | -4.26% | |||||||||||||||||||||
$ | 0.7 | National Health Care Expenditures | -1.8 | % | — | 8.85% | -4.00% | |||||||||||||||||||||
State-sponsored health plans settlement account deficit | $ | 51.7 | Income Approach | Discount Rate | 1.135 | % | — | 1.14% | -1.13% | |||||||||||||||||||
Goodwill - Western Region reporting unit | $ | 565.9 | Income Approach | Discount Rate | 10 | % | — | 10.00% | -10.00% | |||||||||||||||||||
Fair Value as of | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Embedded contractual derivative asset | $ | 11.2 | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | -1.7 | % | — | 0.80% | -0.004 | |||||||||||||||||||
National Health Care Expenditures | 3.7 | % | — | 3.70% | -3.70% | |||||||||||||||||||||||
Embedded contractual derivative liability | Monte Carlo Simulation Approach | Health Net Health Care Expenditures | -0.3 | % | — | 10.10% | -4.90% | |||||||||||||||||||||
$ | 3.2 | National Health Care Expenditures | -0.1 | % | — | 7.30% | -3.30% | |||||||||||||||||||||
Goodwill - Western Region reporting unit | $ | 565.9 | Income Approach | Discount Rate | 9 | % | — | 9.00% | -9.00% | |||||||||||||||||||
Lease impairment obligation | $ | 7.4 | Income Approach | Discount Rate | 3.26 | % | — | 3.26% | -3.26% | |||||||||||||||||||
Basis_of_Presentation_Reclassi
Basis of Presentation Reclassifications in Consolidated Statements of Cash Flows (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 |
cash flow from financing activities [Member] | ' |
Prior Period Reclassification Adjustment | $44.60 |
cash flows from operating activities [Member] | ' |
Prior Period Reclassification Adjustment | ($44.60) |
Significant_Accounting_Policie3
Significant Accounting Policies (Cash and Cash Equivalents, Investments and Fair Value of Financial Instruments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' |
Checks outstanding | $0 | ' | $0 | ' | $23.80 |
Losses recognized from other-than-temporary impairments | 0 | 0 | 0 | 0 | ' |
Fair value of fixed rate borrowings | 428 | ' | 428 | ' | 424 |
Fair value of variable rate borrowings | $100 | ' | $100 | ' | $100 |
Significant_Accounting_Policie4
Significant Accounting Policies (Health Plan Services Health Care Cost) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Prior Years Favorable Reserve Development | $55.90 | ' |
Provision For Adverse Deviation | 52.9 | ' |
Prior Years Unfavorable Reserve Development | ' | $32.80 |
Significant_Accounting_Policie5
Significant Accounting Policies (Concentration of Credit Risk) (Details) (Government Contracts Concentration Risk [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Government Contracts Concentration Risk [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration risk, percentage | 95.00% |
Significant_Accounting_Policie6
Significant Accounting Policies (Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | ($35,600,000) | $7,700,000 | $26,984,000 | $16,600,000 |
Other comprehensive income before reclassifications | 700,000 | 22,400,000 | -47,800,000 | 28,700,000 |
Amounts reclassified from accumulated other comprehensive income | 200,000 | -2,200,000 | -13,900,000 | -17,400,000 |
Other comprehensive income (loss), net of tax | 914,000 | 20,255,000 | -61,679,000 | 11,299,000 |
Ending balance | -34,695,000 | 27,900,000 | -34,695,000 | 27,900,000 |
Unrealized Gains (Losses) on investments available-for-sale [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | -25,400,000 | 19,600,000 | 38,000,000 | 29,800,000 |
Other comprehensive income before reclassifications | 700,000 | 22,400,000 | -47,800,000 | 28,700,000 |
Amounts reclassified from accumulated other comprehensive income | -200,000 | -2,800,000 | -15,100,000 | -19,300,000 |
Other comprehensive income (loss), net of tax | 500,000 | 19,600,000 | -62,900,000 | 9,400,000 |
Ending balance | -24,900,000 | 39,200,000 | -24,900,000 | 39,200,000 |
Defined Benefit Pension Plans [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | -10,200,000 | -11,900,000 | -11,000,000 | -13,200,000 |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 400,000 | 600,000 | 1,200,000 | 1,900,000 |
Other comprehensive income (loss), net of tax | 400,000 | 600,000 | 1,200,000 | 1,900,000 |
Ending balance | ($9,800,000) | ($11,300,000) | ($9,800,000) | ($11,300,000) |
Significant_Accounting_Policie7
Significant Accounting Policies (Reclassifications Out of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Tax benefit | $41,740,000 | $8,898,000 | $91,538,000 | $5,712,000 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Net of tax | -200,000 | 2,200,000 | 13,900,000 | 17,400,000 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on investments available-for-sale [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Net investment income | 300,000 | 4,300,000 | 23,300,000 | 29,700,000 | ||||
Total before tax | 300,000 | 4,300,000 | 23,300,000 | 29,700,000 | ||||
Tax benefit | 100,000 | 1,500,000 | 8,200,000 | 10,400,000 | ||||
Net of tax | 200,000 | 2,800,000 | 15,100,000 | 19,300,000 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of defined benefit pension items [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Prior-service cost | -100,000 | [1] | 0 | [1] | -100,000 | [1] | -100,000 | [1] |
Actuarial gains (losses) | -600,000 | [1] | -1,000,000 | [1] | -1,900,000 | [1] | -3,000,000 | [1] |
Total before tax | -700,000 | -1,000,000 | -2,000,000 | -3,100,000 | ||||
Tax benefit | -300,000 | -400,000 | -800,000 | -1,200,000 | ||||
Net of tax | ($400,000) | ($600,000) | ($1,200,000) | ($1,900,000) | ||||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Significant_Accounting_Policie8
Significant Accounting Policies (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 08, 2012 | 2-May-11 | Sep. 30, 2013 | Dec. 31, 2012 |
2011 Stock Repurchase Program [Member] | 2011 Stock Repurchase Program [Member] | 2011 Stock Repurchase Program [Member] | 2011 Stock Repurchase Program [Member] | |||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock equivalents (in shares) | 1,009,000 | 432,000 | 903,000 | 996,000 | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 812,000 | 4,342,000 | 1,019,000 | 1,819,000 | ' | ' | ' | ' |
Stock repurchase program authorized amount | ' | ' | ' | ' | $323.70 | $300 | ' | ' |
Stock repurchase program remaining authorized repurchase amount | ' | ' | ' | ' | ' | ' | $280 | $350 |
Significant_Accounting_Policie9
Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Provider Networks [Member] | Provider Networks [Member] | Customer Relationships and Other [Member] | Customer Relationships and Other [Member] | Western Region Operations [Member] | Western Region Operations [Member] | Western Region Operations [Member] | Western Region Operations [Member] | |||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $565,886,000 | $565,886,000 | ' | ' | ' | ' | $565,900,000 | ' | $565,900,000 | ' |
Ratio of fair value to carrying value | ' | ' | ' | ' | ' | ' | ' | 149.00% | ' | 115.00% |
Finite-Lived Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amount | 70,000,000 | 70,000,000 | 40,500,000 | 40,500,000 | 29,500,000 | 29,500,000 | ' | ' | ' | ' |
Accumulated Amortization | -55,300,000 | -52,700,000 | -35,400,000 | -34,600,000 | -19,900,000 | -18,100,000 | ' | ' | ' | ' |
Net Balance | 14,700,000 | 17,300,000 | 5,100,000 | 5,900,000 | 9,600,000 | 11,400,000 | ' | ' | ' | ' |
Weighted Average Life (in years) | ' | ' | '19 years 4 months 24 days | '19 years 4 months 24 days | '11 years 1 month 6 days | '11 years 1 month 6 days | ' | ' | ' | ' |
Future Amortization Expense, Current to Five Succeeding Fiscal Years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2013 | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Significant Accounting Policies (Restricted Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Restricted cash and cash equivalents | $1.70 | $0.80 |
Investment securities held by trustees or agencies | $26.60 | $25.50 |
Recovered_Sheet2
Significant Accounting Policies (Medicaid/Medi-Cal Adjustments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | |
Health Care Organization Revenue and Expense [Line Items] | ' | ' | ' | ' | ' |
Medicaid retro rate adjustment | $32,100,000 | ' | $74,300,000 | ' | ' |
Percent reduction in provider reimbursement rates | ' | ' | ' | ' | 10.00% |
Health plan services premiums | 2,606,754,000 | 2,578,689,000 | 7,817,697,000 | 7,818,565,000 | ' |
Medicaid Premium Revenue [Member] | ' | ' | ' | ' | ' |
Health Care Organization Revenue and Expense [Line Items] | ' | ' | ' | ' | ' |
Health plan services premiums | 641,600,000 | 475,400,000 | 1,833,600,000 | 1,419,200,000 | ' |
Reinstated Medicaid premium tax [Member] | ' | ' | ' | ' | ' |
Health Care Organization Revenue and Expense [Line Items] | ' | ' | ' | ' | ' |
Taxes, Other | 25,600,000 | ' | 68,400,000 | ' | ' |
Reinstated Medicaid premium tax [Member] | Medicaid Premium Revenue [Member] | ' | ' | ' | ' | ' |
Health Care Organization Revenue and Expense [Line Items] | ' | ' | ' | ' | ' |
Health plan services premiums | 25,600,000 | ' | 68,400,000 | ' | ' |
Reinstated retroactive Medicaid premium taxes [Member] | Reinstated Medicaid premium tax [Member] | ' | ' | ' | ' | ' |
Health Care Organization Revenue and Expense [Line Items] | ' | ' | ' | ' | ' |
Taxes, Other | ' | ' | $18,800,000 | ' | ' |
Sale_of_Medicare_PDP_Business_
Sale of Medicare PDP Business (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 02, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Customers | Customers | Customers | Customers | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' |
(Adjustment to) gain on sale of discontinued operation, net of tax | ' | $0 | ($2,450,000) | ' | $0 | $116,990,000 |
Prescription Drug Plan (Medicare PDP) [Member] | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' |
Disposal date | 1-Apr-12 | ' | ' | ' | ' | ' |
Proceeds from divestiture of business | ' | ' | ' | 248,200,000 | ' | ' |
Gain on sale of discontinued operation, before tax | ' | ' | ' | ' | ' | 132,800,000 |
(Adjustment to) gain on sale of discontinued operation, net of tax | ' | ' | ' | ' | ' | 117,000,000 |
Number of customers | ' | 0 | 0 | ' | 0 | 0 |
Discontinued operations revenues | ' | 0 | 0 | ' | 0 | 191,800,000 |
Income (loss) from discontinued operations before income taxes | ' | $0 | $0 | ' | $0 | ($28,800,000) |
Segment_Information_Segment_In
Segment Information (Segment Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segments | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of reportable segments (in segments) | ' | ' | 3 | ' |
Revenues | $2,775,031 | $2,779,572 | $8,310,499 | $8,451,310 |
Segment pretax income (loss) | 108,580 | 29,376 | 241,911 | 23,226 |
Intersegment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Western Region Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 2,625,700 | 2,596,900 | 7,886,700 | 7,898,200 |
Segment pretax income (loss) | 85,200 | 20,200 | 204,300 | 12,600 |
Western Region Operations [Member] | Intersegment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 2,700 | 2,700 | 8,400 | 8,300 |
Government Contracts [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 149,300 | 169,800 | 423,800 | 527,400 |
Segment pretax income (loss) | 23,500 | 21,100 | 50,600 | 66,600 |
Government Contracts [Member] | Intersegment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Divested Operations and Services [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 12,900 | 0 | 25,700 |
Segment pretax income (loss) | 0 | -4,700 | 0 | -34,400 |
Divested Operations and Services [Member] | Intersegment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Corporate/Other/Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 0 | 0 | 0 | 0 |
Segment pretax income (loss) | -100 | -7,200 | -13,000 | -21,600 |
Corporate/Other/Eliminations [Member] | Intersegment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | ($2,700) | ($2,700) | ($8,400) | ($8,300) |
Segment_Information_Premium_Re
Segment Information (Premium Revenue By Line Of Business) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Health plans services premiums | $2,606,754 | $2,578,689 | $7,817,697 | $7,818,565 |
Commercial Premium Revenue [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Health plans services premiums | 1,279,800 | 1,420,400 | 3,903,800 | 4,310,000 |
Medicare Premium Revenue [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Health plans services premiums | 685,400 | 682,900 | 2,080,300 | 2,089,400 |
Medicaid Premium Revenue [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Health plans services premiums | $641,600 | $475,400 | $1,833,600 | $1,419,200 |
Investments_Fair_Value_of_Inve
Investments (Fair Value of Investments Available-for-Sale) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Carrying Value, Current | $1,580,032,000 | $1,812,512,000 |
Carrying Value, Noncurrent | 52,637,000 | 0 |
Current [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,611,091,000 | 1,753,931,000 |
Gross Unrealized Holding Gains | 13,600,000 | 61,300,000 |
Gross Unrealized Holding Losses | -44,700,000 | -2,700,000 |
Carrying Value, Current | 1,580,000,000 | 1,812,500,000 |
Noncurrent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 60,080,000 | 0 |
Gross Unrealized Holding Gains | 0 | ' |
Gross Unrealized Holding Losses | -7,500,000 | ' |
Carrying Value, Noncurrent | 52,600,000 | ' |
Asset-Backed Securities [Member] | Current [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 410,100,000 | 499,700,000 |
Gross Unrealized Holding Gains | 3,900,000 | 19,600,000 |
Gross Unrealized Holding Losses | -6,600,000 | -200,000 |
Carrying Value, Current | 407,400,000 | 519,100,000 |
Asset-Backed Securities [Member] | Noncurrent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 800,000 | ' |
Gross Unrealized Holding Gains | 0 | ' |
Gross Unrealized Holding Losses | -100,000 | ' |
Carrying Value, Noncurrent | 700,000 | ' |
U.S. Government and Agencies [Member] | Current [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 26,500,000 | 25,900,000 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 0 | 0 |
Carrying Value, Current | 26,500,000 | 25,900,000 |
Obligations of States and Other Political Subdivisions [Member] | Current [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 741,100,000 | 819,900,000 |
Gross Unrealized Holding Gains | 6,400,000 | 24,200,000 |
Gross Unrealized Holding Losses | -28,300,000 | -2,000,000 |
Carrying Value, Current | 719,200,000 | 842,100,000 |
Obligations of States and Other Political Subdivisions [Member] | Noncurrent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 48,900,000 | ' |
Gross Unrealized Holding Gains | 0 | ' |
Gross Unrealized Holding Losses | -6,000,000 | ' |
Carrying Value, Noncurrent | 42,900,000 | ' |
Corporate Debt Securities [Member] | Current [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 433,400,000 | 408,400,000 |
Gross Unrealized Holding Gains | 3,300,000 | 17,500,000 |
Gross Unrealized Holding Losses | -9,800,000 | -500,000 |
Carrying Value, Current | 426,900,000 | 425,400,000 |
Corporate Debt Securities [Member] | Noncurrent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 10,400,000 | ' |
Gross Unrealized Holding Gains | 0 | ' |
Gross Unrealized Holding Losses | -1,400,000 | ' |
Carrying Value, Noncurrent | $9,000,000 | ' |
Investments_AvailableforSale_I
Investments (Available-for-Sale Investments Classified by Contractual Maturity Date) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Noncurrent | $52,637,000 | $0 |
Available for sale securities, Estimated Fair Value | 1,580,032,000 | 1,812,512,000 |
Current [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due in one year or less, Amortized Cost | 42,500,000 | ' |
Due after one year through five years, Amortized Cost | 281,600,000 | ' |
Due after five years through ten years, Amortized Cost | 442,800,000 | ' |
Due after ten years, Amortized Cost | 434,100,000 | ' |
Available for sale securities, Amortized Cost | 1,611,091,000 | 1,753,931,000 |
Due in one year or less, Estimated Fair Value | 42,800,000 | ' |
Due after one year through five years, Estimated Fair Value | 284,100,000 | ' |
Due after five years through ten years, Estimated Fair Value | 434,900,000 | ' |
Due after ten years, Estimated Fair Value | 410,800,000 | ' |
Available for sale securities, Estimated Fair Value | 1,580,000,000 | 1,812,500,000 |
Current [Member] | Asset-backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale securities, Amortized Cost | 410,100,000 | 499,700,000 |
Available for sale securities, Estimated Fair Value | 407,400,000 | 519,100,000 |
Noncurrent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due after one year through five years, Amortized Cost | 1,000,000 | ' |
Due after five years through ten years, Amortized Cost | 9,500,000 | ' |
Due after ten years, Amortized Cost | 48,800,000 | ' |
Available for sale securities, Amortized Cost | 60,080,000 | 0 |
Available-for-sale Securities, Noncurrent | 52,600,000 | ' |
Due after one year through five years, Estimated Fair Value | 800,000 | ' |
Due after five years through ten years, Estimated Fair Value | 8,300,000 | ' |
Due after ten years, Estimated Fair Value | 42,800,000 | ' |
Noncurrent [Member] | Asset-backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale securities, Amortized Cost | 800,000 | ' |
Available-for-sale Securities, Noncurrent | $700,000 | ' |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investments [Abstract] | ' | ' | ' | ' | ' |
Losses from other-than-temporary impairments | $0 | $0 | $0 | $0 | ' |
Available-for-sale Securities, Noncurrent | 52,637,000 | ' | 52,637,000 | ' | 0 |
Proceeds from sales of investments available-for-sale | 80,400,000 | 117,600,000 | 653,786,000 | 1,132,836,000 | ' |
Gross realized gains | 1,000,000 | 4,300,000 | 25,500,000 | 30,100,000 | ' |
Gross realized losses | $700,000 | $36,000 | $2,200,000 | $400,000 | ' |
Investments_Unrealized_Loss_Po
Investments (Unrealized Loss Position for Investments) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Current [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | $1,028.50 | $303 |
Less than 12 Months, Unrealized Losses | -44.1 | -2.7 |
12 Months or More, Fair Value | 11.8 | 0.3 |
12 Months or More, Unrealized Losses | -0.6 | 0 |
Total, Fair Value | 1,040.30 | 303.3 |
Total, Unrealized Losses | -44.7 | -2.7 |
Current [Member] | Asset-Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 232.8 | 54.9 |
Less than 12 Months, Unrealized Losses | -6.2 | -0.2 |
12 Months or More, Fair Value | 9.1 | 0.1 |
12 Months or More, Unrealized Losses | -0.4 | 0 |
Total, Fair Value | 241.9 | 55 |
Total, Unrealized Losses | -6.6 | -0.2 |
Current [Member] | U.S. Government and Agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | ' | 10.1 |
Less than 12 Months, Unrealized Losses | ' | 0 |
12 Months or More, Fair Value | ' | 0 |
12 Months or More, Unrealized Losses | ' | 0 |
Total, Fair Value | ' | 10.1 |
Total, Unrealized Losses | ' | 0 |
Current [Member] | Obligations of States and Other Political Subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 542.4 | 192.1 |
Less than 12 Months, Unrealized Losses | -28.3 | -2 |
12 Months or More, Fair Value | 0.2 | 0.2 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 542.6 | 192.3 |
Total, Unrealized Losses | -28.3 | -2 |
Current [Member] | Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 253.3 | 45.9 |
Less than 12 Months, Unrealized Losses | -9.6 | -0.5 |
12 Months or More, Fair Value | 2.5 | 0 |
12 Months or More, Unrealized Losses | -0.2 | 0 |
Total, Fair Value | 255.8 | 45.9 |
Total, Unrealized Losses | -9.8 | -0.5 |
Noncurrent [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 51.9 | ' |
Less than 12 Months, Unrealized Losses | -7.4 | ' |
12 Months or More, Fair Value | 0.7 | ' |
12 Months or More, Unrealized Losses | -0.1 | ' |
Total, Fair Value | 52.6 | ' |
Total, Unrealized Losses | -7.5 | ' |
Noncurrent [Member] | Asset-Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 0 | ' |
Less than 12 Months, Unrealized Losses | 0 | ' |
12 Months or More, Fair Value | 0.7 | ' |
12 Months or More, Unrealized Losses | -0.1 | ' |
Total, Fair Value | 0.7 | ' |
Total, Unrealized Losses | -0.1 | ' |
Noncurrent [Member] | Obligations of States and Other Political Subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 42.9 | ' |
Less than 12 Months, Unrealized Losses | -6 | ' |
12 Months or More, Fair Value | 0 | ' |
12 Months or More, Unrealized Losses | 0 | ' |
Total, Fair Value | 42.9 | ' |
Total, Unrealized Losses | -6 | ' |
Noncurrent [Member] | Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 9 | ' |
Less than 12 Months, Unrealized Losses | -1.4 | ' |
12 Months or More, Fair Value | 0 | ' |
12 Months or More, Unrealized Losses | 0 | ' |
Total, Fair Value | 9 | ' |
Total, Unrealized Losses | ($1.40) | ' |
Investments_Number_of_Securiti
Investments (Number of Securities Included in Loss Position of Current and Noncurrent Investments) (Details) | Sep. 30, 2013 |
Securities | |
Current [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 551 |
12 Months or More | 11 |
Total, number of securities | 562 |
Current [Member] | Asset-Backed Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 101 |
12 Months or More | 7 |
Total, number of securities | 108 |
Current [Member] | Obligations of States and Other Political Subdivisions [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 237 |
12 Months or More | 1 |
Total, number of securities | 238 |
Current [Member] | Corporate Debt Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 213 |
12 Months or More | 3 |
Total, number of securities | 216 |
Noncurrent [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 27 |
12 Months or More | 1 |
Total, number of securities | 28 |
Noncurrent [Member] | Asset-Backed Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 0 |
12 Months or More | 1 |
Total, number of securities | 1 |
Noncurrent [Member] | Obligations of States and Other Political Subdivisions [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 18 |
12 Months or More | 0 |
Total, number of securities | 18 |
Noncurrent [Member] | Corporate Debt Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 Months | 9 |
12 Months or More | 0 |
Total, number of securities | 9 |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 08, 2012 | 2-May-11 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Treasury stock value acquired cost method | ' | ' | ' | ' | $86,878,000 | $69,330,000 | ' |
2011 Stock Repurchase Program [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program authorized amount | 323,700,000 | 300,000,000 | ' | ' | ' | ' | ' |
Treasury stock shares acquired | ' | ' | 0 | 1,500,000 | 2,700,000 | 2,100,000 | ' |
Treasury stock value acquired cost method | ' | ' | ' | 36,100,000 | 70,000,000 | 50,000,000 | ' |
Stock repurchase program remaining authorized repurchase amount | ' | ' | ' | ' | $280,000,000 | ' | $350,000,000 |
Financing_Arrangements_Revolvi
Financing Arrangements (Revolving Credit Facility and Letters of Credit) (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum amount available for borrowing under the revolving credit facility | ' | ' | $600,000,000 |
Line of credit facility, maturity date | 24-Oct-16 | ' | ' |
Additional borrowing capacity | ' | ' | 200,000,000 |
Revolving credit facility outstanding balance | 100,000,000 | ' | ' |
Revolving credit facility, remaining capacity | 491,300,000 | 440,600,000 | ' |
Line of credit default limit | 50,000,000 | ' | ' |
Limit of uninsured judgment not stayed within 60 days | 50,000,000 | ' | ' |
Limit of uninsured judgment not stayed, period (in days) | '60 days | ' | ' |
Standby Letters of Credit [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Revolving credit facility, borrowing capacity | ' | ' | 400,000,000 |
Letter of Credit [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum amount available for borrowing under the revolving credit facility | ' | ' | 400,000,000 |
Outstanding letters of credit | 8,700,000 | 59,400,000 | ' |
Amounts drawn on letters of credit | 0 | 0 | ' |
Bridge Loan [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum amount available for borrowing under the revolving credit facility | ' | ' | $50,000,000 |
Line of Credit [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument basis description | 'a) the base rate (which is a rate per annum equal to the greatest of (i) the federal funds rate plus one-half of one percent, (ii) Bank of America, N.A.’s “prime rate†and (iii) the Eurodollar Rate (as such term is defined in the credit facility) for a one-month interest period plus one percent) plus an applicable margin ranging from 45 to 105 basis points or (b) the Eurodollar Rate plus an applicable margin ranging from 145 to 205 basis points | ' | ' |
Line of Credit [Member] | Federal Funds [Member] | Variable Base Rate A [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate (as a percentage) | 0.50% | ' | ' |
Line of Credit [Member] | Eurodollar Rate Plus 45 to 105 Basis Points [Member] | Variable Base Rate A [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread (as a percentage) | 1.00% | ' | ' |
Interest period on credit facility (in months) | '1 month | ' | ' |
Line of Credit [Member] | Eurodollar Rate Plus 45 to 105 Basis Points [Member] | Variable Base Rate A [Member] | Minimum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate (as a percentage) | 0.45% | ' | ' |
Line of Credit [Member] | Eurodollar Rate Plus 45 to 105 Basis Points [Member] | Variable Base Rate A [Member] | Maximum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate (as a percentage) | 1.05% | ' | ' |
Line of Credit [Member] | Eurodollar Rate Plus 145 to 205 Basis Points [Member] | Variable Base Rate B [Member] | Minimum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate (as a percentage) | 1.45% | ' | ' |
Line of Credit [Member] | Eurodollar Rate Plus 145 to 205 Basis Points [Member] | Variable Base Rate B [Member] | Maximum [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, basis spread on variable rate (as a percentage) | 2.05% | ' | ' |
Financing_Arrangements_Senior_
Financing Arrangements (Senior Notes) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2007 | Sep. 30, 2013 | |
6.375% Senior Notes [Member] | 6.375% Senior Notes [Member] | Change in Control and Below Investment Grade Rating [Member] | |||
6.375% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, aggregate principal amount | ' | ' | ' | $400,000,000 | ' |
Debt instrument, stated interest rate (as a percentage) | ' | ' | ' | 6.38% | ' |
Debt instrument, maturity date | ' | ' | ' | 1-Jun-17 | ' |
Debt Instrument, Redemption Price (as a percentage) | ' | ' | 100.00% | ' | 101.00% |
Default on senior notes | ' | ' | 0 | ' | ' |
Number of days in year per debt terms | ' | ' | '360 days | ' | ' |
Number of months in year per debt terms | ' | ' | '12 months | ' | ' |
Number of days in month, per debt terms | ' | ' | '30 days | ' | ' |
Debt instrument, benchmark for variable rate basis | ' | ' | 'Treasury rate | ' | ' |
Treasury rate basis points (as a percentage) | ' | ' | 0.30% | ' | ' |
Senior note, failure to perform covenant | '60 days | ' | ' | ' | ' |
Senior note, grace period for defaulted payment | '30 days | ' | ' | ' | ' |
Threshold for noncompliance | ' | ' | 50,000,000 | ' | ' |
Accelerated principal amount threshold | ' | ' | 50,000,000 | ' | ' |
Senior notes amount | $399,248,000 | $399,095,000 | ' | ' | ' |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Transfers of Assets, Levels 1 to Level 2 | $0 | ' | $0 |
Transfer of Assets, Level 2 to Level 1 | 0 | ' | 0 |
Transfer of Liabilities, Level 1 to Level 2 | 0 | ' | 0 |
Transfers of Liabilities, Levels 2 to Level 1 | 0 | ' | 0 |
Recurring [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Cash and cash equivalents | 686,100,000 | 340,100,000 | ' |
Investments at fair value | 1,632,600,000 | 1,812,500,000 | ' |
Embedded contractual derivative asset | 12,700,000 | 11,200,000 | ' |
State-sponsored health plans settlement account deficit | 51,700,000 | ' | ' |
Total assets at fair value | 2,383,100,000 | 2,163,800,000 | ' |
Total liability at fair value | ' | ' | 0 |
Recurring [Member] | Residential Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 208,600,000 | 272,400,000 | ' |
Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 157,500,000 | 223,100,000 | ' |
Recurring [Member] | Other Asset-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 42,000,000 | 23,600,000 | ' |
Recurring [Member] | U.S. Treasury Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 26,500,000 | 25,900,000 | ' |
Recurring [Member] | U.S. Agency Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Obligations of States and Other Political Subdivisions [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 762,100,000 | 842,100,000 | ' |
Recurring [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 435,900,000 | 425,400,000 | ' |
Recurring [Member] | Level 1 [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Cash and cash equivalents | 686,100,000 | 340,100,000 | ' |
Investments at fair value | 26,500,000 | 25,900,000 | ' |
Embedded contractual derivative asset | 0 | 0 | ' |
State-sponsored health plans settlement account deficit | 0 | ' | ' |
Total assets at fair value | 712,600,000 | 366,000,000 | ' |
Recurring [Member] | Level 1 [Member] | Residential Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 1 [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 1 [Member] | Other Asset-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 1 [Member] | U.S. Treasury Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 26,500,000 | 25,900,000 | ' |
Recurring [Member] | Level 1 [Member] | U.S. Agency Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 1 [Member] | Obligations of States and Other Political Subdivisions [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 2 [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Investments at fair value | 1,553,500,000 | 1,786,400,000 | ' |
Embedded contractual derivative asset | 0 | 0 | ' |
State-sponsored health plans settlement account deficit | 0 | ' | ' |
Total assets at fair value | 1,553,500,000 | 1,786,400,000 | ' |
Recurring [Member] | Level 2 [Member] | Residential Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 208,600,000 | 272,400,000 | ' |
Recurring [Member] | Level 2 [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 156,800,000 | 223,100,000 | ' |
Recurring [Member] | Level 2 [Member] | Other Asset-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 42,000,000 | 23,600,000 | ' |
Recurring [Member] | Level 2 [Member] | U.S. Treasury Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 2 [Member] | U.S. Agency Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Obligations of States and Other Political Subdivisions [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 719,200,000 | 841,900,000 | ' |
Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 426,900,000 | 425,400,000 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Investments at fair value | 52,600,000 | 0 | ' |
Embedded contractual derivative asset | 0 | 0 | ' |
State-sponsored health plans settlement account deficit | 0 | ' | ' |
Total assets at fair value | 52,600,000 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | Residential Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 700,000 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | Other Asset-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | U.S. Treasury Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | U.S. Agency Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | Obligations of States and Other Political Subdivisions [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 42,900,000 | 0 | ' |
Recurring [Member] | Level 2 [Member] | Noncurrent Assets [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 9,000,000 | 0 | ' |
Recurring [Member] | Level 3 [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' |
Investments at fair value | 0 | 200,000 | ' |
Embedded contractual derivative asset | 12,700,000 | 11,200,000 | ' |
State-sponsored health plans settlement account deficit | 51,700,000 | ' | ' |
Total assets at fair value | 64,400,000 | 11,400,000 | ' |
Embedded contractual derivative liability | 700,000 | 3,200,000 | ' |
Total liability at fair value | 700,000 | 3,200,000 | ' |
Recurring [Member] | Level 3 [Member] | Residential Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 3 [Member] | Commercial Mortgage-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 3 [Member] | Other Asset-Backed Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 3 [Member] | U.S. Treasury Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 3 [Member] | U.S. Agency Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 0 | ' |
Recurring [Member] | Level 3 [Member] | Obligations of States and Other Political Subdivisions [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | 0 | 200,000 | ' |
Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Investments at fair value | $0 | $0 | ' |
Fair_Value_Measurements_Change
Fair Value Measurements (Changes in the Balances of Level 3 Financial Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Opening balance | $46.20 | $15.20 | $11.40 | $5.50 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Total gains or losses for the period | ' | ' | ' | ' |
Realized in net income | 18.2 | -7.8 | 53.2 | 1.9 |
Unrealized in accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, issues, sales and settlements | ' | ' | ' | ' |
Purchases/additions | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | -0.2 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Closing balance | 64.4 | 7.4 | 64.4 | 7.4 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Available-For-Sale Investments [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Opening balance | 0 | 0.2 | 0.2 | 0.2 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Total gains or losses for the period | ' | ' | ' | ' |
Realized in net income | 0 | 0 | 0 | 0 |
Unrealized in accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, issues, sales and settlements | ' | ' | ' | ' |
Purchases/additions | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | -0.2 | 0 |
Settlements | ' | 0 | 0 | 0 |
Closing balance | 0 | 0.2 | 0 | 0.2 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Embedded Contractual Derivative Asset [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Opening balance | 10.8 | 15 | 11.2 | 5.3 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Total gains or losses for the period | ' | ' | ' | ' |
Realized in net income | 1.9 | -7.8 | 1.5 | 1.9 |
Unrealized in accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, issues, sales and settlements | ' | ' | ' | ' |
Purchases/additions | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Closing balance | 12.7 | 7.2 | 12.7 | 7.2 |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Other Noncurrent Asset [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Opening balance | 35.4 | ' | 0 | ' |
Transfers into Level 3 | 0 | ' | 0 | ' |
Transfers out of Level 3 | 0 | ' | 0 | ' |
Total gains or losses for the period | ' | ' | ' | ' |
Realized in net income | 16.3 | ' | 51.7 | ' |
Unrealized in accumulated other comprehensive income | 0 | ' | 0 | ' |
Purchases, issues, sales and settlements | ' | ' | ' | ' |
Purchases/additions | 0 | ' | 0 | ' |
Issues | 0 | ' | 0 | ' |
Sales | 0 | ' | 0 | ' |
Settlements | 0 | ' | 0 | ' |
Closing balance | 51.7 | ' | 51.7 | ' |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $0 | ' | $0 | ' |
Fair_Value_Measurements_Change1
Fair Value Measurements (Changes in the Balances of Level 3 Financial Liabilities) (Details) (Embedded contractual derivative liability [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Embedded contractual derivative liability [Member] | ' | ' |
Changes in Level 3 Financial Liabilities | ' | ' |
Opening balance | $4.80 | $3.20 |
Transfers Into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Realized in net income | -4.1 | -2.5 |
Unrealized in accumulated other comprehensive income | 0 | 0 |
Purchases, issues, sales and settlements: | ' | ' |
Purchases | 0 | 0 |
Issues | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Closing balance | $0.70 | $0.70 |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on Non-Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Nonrecurring [Member] | Level 1 [Member] | Level 2 [Member] | Level 3 [Member] | ||
Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Lease impairment obligation | ' | $7,400,000 | $0 | $0 | $7,400,000 |
Liabilities, Fair Value Disclosure, Nonrecurring | 0 | ' | ' | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $0 | ' | ' | ' | ' |
Fair_Value_Measurements_Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Goodwill | 565,886,000 | 565,886,000 |
Western Region Operations [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Goodwill | 565,900,000 | 565,900,000 |
Level 3 [Member] | Monte Carlo Simulation Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Embedded contractual derivative asset | 12,700,000 | 11,200,000 |
Embedded contractual derivative liability | 700,000 | 3,200,000 |
Level 3 [Member] | Income Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Lease impairment obligation | ' | 7,400,000 |
State-sponsored health plans settlement account deficit | 51,700,000 | ' |
Level 3 [Member] | Western Region Operations [Member] | Income Approach [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Goodwill | 565,900,000 | 565,900,000 |
Level 3 [Member] | Goodwill [Member] | Western Region Operations [Member] | Income Approach [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | 10.00% | 9.00% |
Level 3 [Member] | Goodwill [Member] | Western Region Operations [Member] | Income Approach [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | 10.00% | 9.00% |
Level 3 [Member] | Goodwill [Member] | Western Region Operations [Member] | Income Approach [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | 10.00% | 9.00% |
Level 3 [Member] | Liability [Member] | Income Approach [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | ' | 3.26% |
Level 3 [Member] | Liability [Member] | Income Approach [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | ' | 3.26% |
Level 3 [Member] | Liability [Member] | Income Approach [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | ' | 3.26% |
Embedded contractual derivative liability [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | Health Net Health Care Expenditures [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 2.59% | -0.30% |
Embedded contractual derivative liability [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | Health Net Health Care Expenditures [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 6.10% | 10.10% |
Embedded contractual derivative liability [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | Health Net Health Care Expenditures [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 4.26% | 4.90% |
Embedded contractual derivative liability [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | National Health Care Expenditures [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | -1.80% | -0.10% |
Embedded contractual derivative liability [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | National Health Care Expenditures [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 8.85% | 7.30% |
Embedded contractual derivative liability [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | National Health Care Expenditures [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 4.00% | 3.30% |
Embedded Contractual Derivative Asset [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | Health Net Health Care Expenditures [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | -5.34% | -1.70% |
Embedded Contractual Derivative Asset [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | Health Net Health Care Expenditures [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 7.91% | 0.80% |
Embedded Contractual Derivative Asset [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | Health Net Health Care Expenditures [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 0.69% | -0.40% |
Embedded Contractual Derivative Asset [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | National Health Care Expenditures [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | -0.55% | 3.70% |
Embedded Contractual Derivative Asset [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | National Health Care Expenditures [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 7.04% | 3.70% |
Embedded Contractual Derivative Asset [Member] | Level 3 [Member] | Monte Carlo Simulation Approach [Member] | National Health Care Expenditures [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Health Care Expenditures, range (as a percentage) | 3.35% | 3.70% |
State-sponsored health plans settlement account deficit [Member] | Level 3 [Member] | Income Approach [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | 1.14% | ' |
State-sponsored health plans settlement account deficit [Member] | Level 3 [Member] | Income Approach [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | 1.14% | ' |
State-sponsored health plans settlement account deficit [Member] | Level 3 [Member] | Income Approach [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount Rate, range (as a percentage) | 1.14% | ' |
Legal_Proceedings_Details
Legal Proceedings (Details) (Litigation Related to Information Security Issues [Member], USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Mar. 28, 2011 | Mar. 18, 2011 | |
employees_members_providers | claims | Customers | |
actions | |||
Litigation Related to Information Security Issues [Member] | ' | ' | ' |
Litigation and Investigations Related to Unaccounted-for Server Drives [Abstract] | ' | ' | ' |
Number of pending litigations | 3 | ' | ' |
Total number of people with information on drives | 2,000,000 | ' | ' |
Period of free credit monitoring services | '2 years | ' | ' |
Remaining actions currently pending, after consolidation | 2 | ' | ' |
Estimated putative class members | ' | ' | 800,000 |
Damages sought for each class member | ' | ' | $1,000 |
Number of named plaintiffs' claims on which arbitration was requested | ' | 2 | ' |
Number of motions for arbitration granted | ' | 1 | ' |
Settlement terms | 'Under the terms of the Settlement Agreement, which would cover all individuals whose personal information was identified as being on the unaccounted-for server drives, class members who did not previously accept our offer of the credit monitoring and related services described above would be eligible to receive such credit monitoring and related services for a period of two years at no cost to them. Class members who previously accepted our original offer would be eligible to receive one additional year of such services. In addition, under the Settlement Agreement, class members would be eligible to receive reimbursement for certain unreimbursed losses arising from identity theft during a specified time period, up to a cap of $50,000 per class member, and $2 million in the aggregate. The Settlement Agreement also provides that we will continue our ongoing activities to enhance our information security measures, including the encryption of data at rest on our servers and storage area networks. We will also be responsible for the payment of any award of fees and expenses to plaintiffs' counsel for each of the three class actions described above as determined by the Sacramento County Superior Court. Finally, we will be responsible for the costs of administering the Settlement Agreement. | ' | ' |
Litigation settlement amount, per member, maximum | 50,000 | ' | ' |
Litigation settlement amount, maximum | $2,000,000 | ' | ' |
StateSponsored_Health_Plans_Ra1
State-Sponsored Health Plans Rate Settlement Agreement (Details) (USD $) | Dec. 31, 2012 | Sep. 30, 2013 |
Medicaid Premium Revenue [Member] | ||
State-Sponsored Health Plans Rate Settlement Agreement [Line Items] | ' | ' |
State settlement premium revenue | ' | $51,700,000 |
Settlement account balance, beginning | 0 | ' |
Settlement account payment, maximum | ' | 264,000,000 |
Settlement account payment, current balance | ' | 51,700,000 |
Receivable with imputed interest, discount | ' | $3,700,000 |