SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

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 Coordinated Care Plans (“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.

	Quarter Ended March 31, 2013
	Commercial Products Division		Government Programs Division		Workers’ Compensation		Elim.			Total
Operating revenues
Managed care premiums	$	1,322,718	$	1,928,726	$	—	$	(14,781	)	$	3,236,663
Management services	108,084		—		175,488		—			283,572
Total operating revenues	1,430,802		1,928,726		175,488		(14,781		)	3,520,235
Medical costs	1,021,785		1,679,647		—		(14,781		)	2,686,651
Cost of sales	—		—		59,485		—			59,485
Gross margin	$	409,017	$	249,079	$	116,003	$	—		$	774,099
Selling, general and administrative										520,300
Depreciation and amortization										37,631
Operating earnings										$	216,168

	Quarter Ended March 31, 2012
	Commercial Products Division		Government Programs Division		Workers’ Compensation		Elim.			Total
Operating revenues
Managed care premiums	$	1,481,275	$	1,915,795	$	—	$	(10,802	)	$	3,386,268
Management services	113,777		—		191,922		—			305,699
Total operating revenues	1,595,052		1,915,795		191,922		(10,802		)	3,691,967
Medical costs	1,177,985		1,641,165		—		(10,802		)	2,808,348
Cost of sales	—		—		67,952		—			67,952
Gross margin	$	417,067	$	274,630	$	123,970	$	—		$	815,667
Selling, general and administrative										502,888
Depreciation and amortization										36,303
Operating earnings										$	276,476