Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Notes)

v2.4.0.8
Discontinued Operations (Notes)
6 Months Ended
Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure
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 allowed 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. Refer to Note 11, Contingencies, in the Notes to the Consolidated Financial Statements for further information regarding litigation between the Company and the Cabinet.

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 six months ended June 30, 2014, the Company received $8,000 of dividends from KSHP. KSHP had remaining statutory capital of approximately $72,400 at June 30, 2014, which, subject to future dividends, will be transferred to unregulated cash upon regulatory approval.

Operating results for the discontinued operations are as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2014
 
2013
 
2014
 
2013
Revenues
 
$

 
$
115,407

 
$

 
$
235,816

Earnings (loss) before income taxes
 
3,141

 
(1,503
)
 
2,300

 
(792
)
Net earnings (loss)
 
1,680

 
(805
)
 
847

 
(442
)

The net earnings from discontinued operations for the three and six months ended June 30, 2014 includes $894 and $1,788, respectively, of health insurer fee expense based on 2013 premium.

Assets and liabilities of the discontinued operations are as follows:
 
 
June 30, 2014
 
December 31, 2013
 
Current assets
 
$
72,839

 
$
77,512

 
Long term investments and restricted deposits
 
26,430

 
38,305

 
Assets of discontinued operations
 
$
99,269

 
$
115,817

 
 
 
 
 
 
 
Medical claims liability
 
$
14,251

 
$
27,637

 
Accounts payable and accrued expenses
 
10,391

 
2,657

 
Other liabilities
 
451

 
1,028

 
Liabilities of discontinued operations
 
$
25,093

 
$
31,322