Wall Street investment firms seem to be paying more attention to the three big Patient Protection and Affordable Care Act (PPACA) health insurer risk-management programs.
Several securities analysts asked Jay Gellert, the president of Health Net Inc. (NYSE:HNT), about the PPACA risk corridors program Monday during the company’s first-quarter earnings call.
Health Net is reporting $30 million in net income for the first quarter on $3.9 billion in revenue, up from $4.9 million in net income on $3.8 billion in revenue for the first quarter of 2014.
The company ended the quarter providing or administering coverage for about 6 million people, up from 5.5 million people a year earlier.
Gellert said he feels good about Health Net’s PPACA risk-management program position.
About 319,000 of Health Net’s 391,000 individual coverage holders, or 82 percent, have exchange coverage, Gellert said.
Health Net hopes to get about $270 million from the PPACA reinsurance program for the first quarter. That program is supposed to use a general health plan assessment to help PPACA-compliant individual and small-group plans pay the claims of enrollees with catastrophic health costs in 2014, 2015 and 2016.
Health Net expects to pay $145 million into the PPACA risk-adjustment program, which is supposed to be a permanent program that will use cash from plans with relatively low-risk enrollees to help plans with relatively high-risk enrollees.