Departing Managers Hurt Universal American Results

Profits at a unit that sells Medicare supplement insurance and other senior health products fell to $5.6 million, from $8.3 million, because of the increases in outpatient doctor visit and skilled nursing care claims.

But another contributing factor was the departure of 3 sales managers. The managers caused a spike in Universal American’s Medicare supplement lapse rates by placing their business elsewhere, the company says.

“Universal American believes that these sales managers violated their contractual obligations and is pursuing legal remedies,” Universal American says in a discussion of its earnings.