SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

During the first quarter of 2012, the Company reorganized the executive management team to better align resources and provide continued focus on areas of future growth. As a result of this reorganization, the Company realigned its segments during the first quarter of 2012 to reflect the manner in which the chief operating decision maker reviews financial information. As a result, the Company has the following three reportable segments:  Commercial Products, Government Programs and Workers’ Compensation.  Each of these segments, which the Company also refers to as “Divisions,” is separately managed and provides separate operating results that are evaluated by the Company’s chief operating decision maker.

The Commercial Products Division is primarily comprised of the Company’s traditional health plan based Commercial and Individual Risk business. Additionally, through this Division the Company contracts with various federal employee organizations to provide health insurance benefits under the Federal Employees Health Benefits Program (“FEHBP”) and offers administrative services only products to businesses that self-insure their health benefits managed care. This Division also contains the dental services, network rental and behavioral health benefits products.

The Government Programs Division includes the Company’s Medicare Part D and traditional health plan based Medicare Advantage CCP and Medicaid products.

The Workers’ Compensation Division is comprised of fee-based, managed care services, such as provider network access, bill review, pharmacy benefit management, durable medical equipment and ancillary services, and care management services to underwriters and administrators of workers’ compensation insurance.

The tables below summarize the operating results of the Company’s reportable segments through the gross margin level, as that is the measure of profitability used by the chief operating decision maker to assess segment performance and make decisions regarding the allocation of resources. A reconciliation of gross margin to operating earnings at a consolidated level is also provided. Total assets by reportable segment are not disclosed as these assets are not reviewed separately by the Company’s chief operating decision maker. The dollar amounts in the segment tables are presented in thousands. The Company’s segment presentation for the prior years have been reclassified to conform to the 2012 presentation.

	Year Ended December 31, 2012
	Commercial Products Division		Government Programs Division		Workers’ Compensation		Elim.			Total
Operating revenues
Managed care premiums	$	5,737,626	$	7,236,240	$	—	$	(47,491	)	$	12,926,375
Management services	429,209		—		757,779		—			1,186,988
Total operating revenues	6,166,835		7,236,240		757,779		(47,491		)	14,113,363
Medical costs	4,649,073		6,252,192		—		(47,491		)	10,853,774
Cost of sales	—		—		266,803		—			266,803
Gross margin	$	1,517,762	$	984,048	$	490,976	$	—		$	2,992,786
Selling, general and administrative										2,080,236
Depreciation and amortization										152,859
Operating earnings										$	759,691

	Year Ended December 31, 2011
	Commercial Products Division		Government Programs Division		Workers’ Compensation		Elim.			Total
Operating revenues
Managed care premiums	$	6,053,178	$	4,990,770	$	—	$	(28,998	)	$	11,014,950
Management services	387,949		—		783,784		—			1,171,733
Total operating revenues	6,441,127		4,990,770		783,784		(28,998		)	12,186,683
Medical costs	4,891,471		4,178,929		—		(28,998		)	9,041,402
Cost of sales	—		—		283,544		—			283,544
Gross margin	$	1,549,656	$	811,841	$	500,240	$	—		$	2,861,737
Selling, general and administrative										2,016,042
Provider class action - (release)/charge										(159,300		)
Depreciation and amortization										136,865
Operating earnings										$	868,130

	Year Ended December 31, 2010
	Commercial Products Division		Government Programs Division		Workers’ Compensation		Elim.			Total
Operating revenues
Managed care premiums	$	5,564,834	$	4,851,756	$	—	$	(1,950	)	$	10,414,640
Management services	418,221		—		755,055		—			1,173,276
Total operating revenues	5,983,055		4,851,756		755,055		(1,950		)	11,587,916
Medical costs	4,323,704		3,944,193		—		(1,950		)	8,265,947
Cost of sales	—		—		252,052		—			252,052
Gross margin	$	1,659,351	$	907,563	$	503,003	$	—		$	3,069,917
Selling, general and administrative										1,961,947
Provider class action - (release)/charge										278,000
Depreciation and amortization										140,685
Operating earnings										$	689,285