Georgia Duplicate Premium Payments

6 Months Ended

Jun. 30, 2011

Georgia Duplicate Premium Payments [Abstract]


14.	Georgia Duplicate Premium Payments

During the three months ended June 30, 2011, the Company revised its estimate of amounts owed to GA DCH for duplicate premium payments received by the Company. This liability arose from the assignment by GA DCH of more than one Medicaid enrollment number to an individual resulting in duplicate premium payments for the same member. The occurrence of duplicate member records is common in Georgia and generally is corrected in a timely manner.

During the three months ended June 30, 2011, the Company made inquiries of GA DCH regarding anomalies the Company identified in the monthly membership files that indicated GA DCH was not current in its process of merging duplicate member records. As a result, GA DCH initiated a comprehensive review that uncovered systemic membership record issues impacting contracted health plans as far back as the start of the Medicaid managed care program in Georgia in 2006. Based on this information, the Company increased its estimate of amounts due to GA DCH for payments received in prior periods by $13,800 thereby reducing earnings per diluted share by $0.16 in the three months ended June 30, 2011. For the six months ended June 30, 2011, $10,800 of the increase in the estimate for this liability related to prior years thereby reducing earnings per diluted share by $0.13 for the six month period ended June 30, 2011.