OTHER DISCLOSURES

Other Income, net

The following table presents the components of Other Income, net for the quarters ended March 31, 2013 and 2012 (in millions):



	Quarters Ended March 31,
	2013		2012

Interest income	$	16.5	$	18.4
Gains on sales of investments	$	12.5	$	4.3
Other income	$	1.3	$	1.7
Other income, net	$	30.3	$	24.4

Concentration of Credit Risk

The Company is a provider of health insurance coverage to State of Illinois employees and their dependents. As of December 31, 2012, the Company had an outstanding premium receivable from the State of Illinois of approximately $32.2 million. During the quarter, the Company started participating with the Vendor Assistance Program (“VAP”) which is run by a privately held company that has assumed receivables from certain of the State of Illinois vendors. As of March 31, 2013, the Company has an outstanding premium receivable balance from the State of Illinois of approximately $17.1 million, which represents three months of health insurance premiums owed at 100% and four months owed at 10%. As the receivable is from a governmental entity which has been making payments, the Company believes that the full receivable balance will ultimately be realized and therefore has not reserved against the outstanding balance. The Company’s regulated subsidiaries are required to submit statutory-basis financial statements to state regulatory agencies. For those financial statements, in accordance with state regulations, this receivable is being treated as an admitted asset in its entirety.

The Company believes its allowance for doubtful accounts adequately provides for estimated losses as of March 31, 2013. The Company has a risk of incurring losses if such allowances are not adequate.

The Company contracts with a pharmacy benefit management (“PBM”) vendor to manage pharmacy benefits for its members and to provide rebate administration services on behalf of the Company. The Company had pharmacy rebate receivables of $302.5 million and $305.4 million as of March 31, 2013 and December 31, 2012, respectively, due from the PBM vendor resulting from the normal cycle of rebate processing, data submission and collection of rebates. The Company has credit risk due to the concentration of receivables with this single vendor; although the Company does not consider the associated credit risk to be significant. The Company only records the pharmacy rebate receivables to the extent that the amounts are deemed probable of collection.