Health Net 1998 Annual Report Download - page 16

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1 4 F O U N D ATIO N H EALTH SYST EMS, I N C.
Florida is the only core health plan in the Central Division. How did it do in 1998?
The plan has repeatedly demonstrated its ability to manage quality patient care for seniors, and
1998 was no exception.The Florida Medicare market is extremely competitive, yet we were still
able to offer excellent benefit packages to seniors and maintain favorable MCRs.
In addition, we made significant progress in bringing commercial pricing in line with actual
medical cost trends.In the past,the commercial market in Florida was extremely underpriced,
making it difficult to market actuarially sound products. Last, we received three year, Full
Accreditation from NCQA – a testament to our commitment to quality.
Other health plans in the Central Division struggled to perform in 1998.W hy?
Health plans in Colorado, O regon and Washington clearly had unit cost pro bl e m s . P r oducts we re
u n d e rp ri c e d , leading to higher than anticipated MCRs. Significant progress was made in the latter
half of 1998 to re p rice our book of business and stabilize health plan reve nue in 1999.
We also withdrew from Medicare service areas that did not make good economic sense. By
redesigning benefit packages and increasing average premiums, we’ve created a positive economic
outlook for our Medicare business in 1999.
W hat is the future of the Service Center in Pueblo, Colorado?
In 1998, we restructured Service Center operations to improve efficiency and reduce administra-
tive costs.This included a rightsizing effort to reflect recent membership losses suffered by several
Central Division health plans.
As FHS divests certain non-core assets,decentralizes services and consolidates operations, we will
continue to retool operations in Pueblo. In the meantime, our main goal is to operate the Service
Center as efficiently as possible and provide quality health care services to our customers.
J. Robert Bru c e
P resident
Central Division
Bob Bruce, a seasoned leader with more than 30 years of industry experience, was appointed to lead the
Central Division in June of 1998. He oversees the operations of nine very different health plans that, together,
provide health care coverage to more than 600,000 members.
He joined an FHS predecessor company in 1992, and has since served in executive positions with several FHS
subsidiaries throughout the country.