Annual report pursuant to Section 13 and 15(d)

Discontinued Operations (Notes)

v2.4.0.8
Discontinued Operations (Notes)
12 Months Ended
Dec. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
4. Discontinued Operations: Kentucky Spirit Health Plan

In October 2012, the Company notified the Kentucky Cabinet for Health and Family Services (Cabinet) that it was exercising a contractual right that it believes allows the Company to terminate its Medicaid managed care contract with the Commonwealth of Kentucky (Commonwealth) effective July 5, 2013.  As of July 6, 2013, our subsidiary, Kentucky Spirit Health Plan (KSHP), ceased serving Medicaid members in Kentucky. Accordingly, the results of operations of KSHP are presented as discontinued operations for all periods presented. The assets, liabilities and results of operations of KSHP are classified as discontinued operations for all periods presented beginning in 2011. KSHP was previously reported in the Managed Care segment.

During the years ended December 31, 2013 and 2012, the Company incurred exit costs consisting primarily of lease termination fees and employee severance. The change in exit cost liability for KSHP is summarized as follows:
 
 
Employee Benefits
 
Lease Termination
 
Total
Balance, December 31, 2011
 
$

 
$

 
$

Incurred
 
2,939

 

 
2,939

Balance, December 31, 2012
 
2,939

 

 
2,939

Incurred
 
434

 
735

 
1,169

Paid
 
(2,837
)
 

 
(2,837
)
Balance, December 31, 2013
 
$
536

 
$
735

 
$
1,271



KSHP had remaining statutory capital of approximately $83,600 at December 31, 2013, which will be transferred to unregulated cash, subject to regulatory approval.

Operating results for the discontinued operations are as follows:
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Revenues
 
$
248,327

 
$
557,316

 
$
129,105

Earnings (loss) before income taxes
 
$
6,165

 
$
(134,415
)
 
$
(13,465
)
Net earnings (loss)
 
$
3,881

 
$
(86,674
)
 
$
(9,300
)


Assets and liabilities of the discontinued operations are as follows:
 
 
December 31, 2013
 
December 31, 2012
 
Current assets
 
$
77,512

 
$
176,996

 
Long term investments and restricted deposits
 
38,305

 
60,461

 
Other assets
 

 
1,836

 
Assets of discontinued operations
 
$
115,817

 
$
239,293

 
 
 
 
 
 
 
Medical claims liability
 
$
27,637

 
$
111,141

 
Accounts payable and accrued expenses
 
2,657

 
45,975

 
Other liabilities
 
1,028

 
357

 
Liabilities of discontinued operations
 
$
31,322

 
$
157,473