UnitedHealth CEO Made Over $66 Million Last Year Due To Company’s Strong Stock Gains
In other news from major insurance providers, Aetna targets a marketing campaign toward the LGBT community and Humana expects its Medicare funding to exceed estimates in 2016, based on the latest CMS benchmark payment rates.
Minneapolis Star-Tribune:
UnitedHealth CEO Stephen Hemsley Made More Than $66 Million In 2014
For the year ended Dec. 31, 2014, UnitedHealth had total revenue of $130 billion and net income of $5.6 billion. Revenue grew 6.5 percent for the year but net income dropped 6 million [though earnings per share grew 3.6 percent to $5.70 thanks to share repurchases]. Analysts expect UnitedHealth’s total revenue to increase to $141.5 billion in 2015 and $151.6 billion in 2016. (Kennedy, 4/7)
The Associated Press:
UnitedHealth Stock Growth Yields Potential Windfall For CEO
UnitedHealth CEO Stephen Hemsley realized a potential gain of more than $45 million from exercising stock options last year, as the share price of the nation’s largest health insurer topped $100 on the way to setting all-time highs. (Murphy, 4/7)
The Associated Press:
Aetna Aims For LGBT Community With Targeted Marketing
Aetna is urging gay customers to "be proud" — and consider buying its coverage — as part of a new, narrow focus to selling health insurance in a business where the individual's buying decision matters more than it used to. The nation's third-largest health insurer is using mobile phone apps, print ads and a recently launched website to appeal to the estimated 9 million members of the lesbian, gay, bisexual and transgender community in the United States. Its website features a video of a gay woman and man talking about love and relationships. It also helps visitors find LGBT-friendly doctors and promises coverage "with features that fit you, your partner and your family." (Murphy, 4/7)
The Wall Street Journal:
Humana Estimates Medicare Funding Will Increase 0.8% In 2016
Humana Inc. said Tuesday it expects its Medicare funding to fare better-than-expected in 2016 after the Centers for Medicare and Medicaid Services completed benchmark payment rates on Monday. Humana said it expects its Medicare Advantage funding to increase by about 0.8%, compared with its previous expectation for a funding decline of 1.25% to 1.75% based on a rate proposal unveiled in February by federal regulators. (Dulaney, 4/7)
Meanwhile, the Wall Street Journal also covers Ventas' plan to spin off 355 skilled nursing facilities and outpatient centers -
The Wall Street Journal:
Ventas To Spin Off Nursing Facilities Into New REIT
Ventas Inc. announced Monday that it would spin off 355 skilled nursing facilities and outpatient recovery centers into a new real-estate investment trust, the latest sign of the growing interest in highly specialized medical properties, which carry more risk but have the potential for high returns. The new company, which isn't yet named, could have a market value of more than $5 billion based on trading multiples for similar companies, said Green Street Advisors, a research firm. Ventas, one of the largest owners of health-care properties, said the spin off would produce annual net income between $315 million and $320 million. (Whelan, 4/7)
And, as hospitals spend a lot of money to find ways to keep patients from returning, there’s no consensus about what’s best for their care -
Marketplace:
Hospitals Innovate To Keep Patients From Coming Back
The government thinks sick patients are coming back to the hospital too soon. So a couple of years ago, the department of Health and Human Services decided to give hospitals a financial nudge in the right direction – by penalizing the hospitals’ Medicare reimbursements if the number of patients who came back to the hospital within 30 days exceeded the national average. It’s supposed to encourage hospitals to find ways to keep patients healthier. The result is that hospitals are spending lots of money to find ways to keep patients from coming back – but there’s no consensus about what’s best for patients. (Kuda Croen, 4/7)
