Health Net 2015 Annual Report Download - page 79

77
Western Region Operations Segment Results
Year Ended December 31,
2015 2014 2013
(Dollars in thousands, except PMPM data)
Commercial premiums....................................................... $ 5,530,545 $ 5,443,062 $ 5,175,370
Medicare premiums............................................................ 3,076,302 3,044,274 2,771,431
Medicaid premiums............................................................ 6,429,571 4,755,897 2,430,272
Dual Eligibles premiums.................................................... 516,930 117,937 —
Health plan services premiums.............................................. 15,553,348 13,361,170 10,377,073
Net investment income .......................................................... 55,494 45,166 69,613
Administrative services fees and other income ..................... 6,294 (1,725) 34,791
Total revenues........................................................................ 15,615,136 13,404,611 10,481,477
Health plan services............................................................... 13,039,806 11,307,751 8,886,547
Premium tax ....................................................................... 266,521 191,150 124,360
Health insurer fee ............................................................... 232,971 141,445 —
Other ACA fees.................................................................. 85,543 97,557 2,530
Administrative expenses .................................................... 1,117,455 1,027,718 949,927
Total general and administrative............................................ 1,702,490 1,457,870 1,076,817
Selling .................................................................................... 270,174 262,338 239,428
Depreciation and amortization............................................... 21,983 29,704 38,589
Interest.................................................................................... 33,309 31,376 32,614
Total expenses........................................................................ 15,067,762 13,089,039 10,273,995
Income from operations before income taxes........................ 547,374 315,572 207,482
Income tax provision.............................................................. 303,036 169,340 73,621
Net income............................................................................. $ 244,338 $ 146,232 $ 133,861
Pretax margin......................................................................... 3.5% 2.4 % 2.0 %
Western Region Operations premium yield........................... 4.6% 9.8 % 2.5 %
Western Region Operations premium per member per
month (PMPM) (d)............................................................. $ 401.91 $ 384.17 $ 349.92
Western Region Operations health care cost trend................ 3.6% 8.5 % (1.4)%
Western Region Operations health care cost PMPM (d)....... $ 336.96 $ 325.12 $ 299.66
Western Region Operations health plan services MCR (a).... 83.8% 84.6 % 85.6 %
Administrative expense ratio (b)............................................ 7.2% 7.7 % 9.1 %
Total G&A expense ratio (b).................................................. 10.9% 10.9 % 10.3 %
Selling costs ratio (c) ............................................................. 1.7% 2.0 % 2.3 %
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(a) Western Region Operations medical care ratio ("MCR") is calculated as health plan services cost divided by
health plan services premiums revenue.
(b) Administrative expense and Total G&A expense ratios are computed as either administrative expenses or total
general and administrative expenses divided by the sum of health plan services premiums revenue and
administrative services fees and other income.
(c) The selling costs ratio is computed as selling expenses divided by health plan services premiums revenue.
(d) Per member per month ("PMPM") is calculated based on member months.