We are pleased to announce a second give-back as part our 2 Percent Pledge commitment to customers and the community. This time we will return an estimated $295 million based on our 2011 net earnings by the end of the year.
We announced the 2 Percent Pledge in June, as part of our commitment to affordability. We pledged to limit our annual net income to 2 percent of revenue, and any year that we earn more than 2 percent net income, to return the difference to our customers and the community. We started this commitment with our net income earned in 2010, and this month we returned $180 million based on 2010 net earnings to your clients and our local communities.
For fiscal year 2011, the estimated $295 million will be given back in the following ways:
-
Approximately $283 million will be credited back to
customers on their December bills. The credit amounts will be determined
based on a percentage of their August 2011 dues and/or premiums.
- Individual (including Medicare Supplement) and fully-insured group
customers will each get a 54 percent credit against one month of
dues/premiums.
- Customers with whom we share risk, such as CalPERS, will each get an 18 percent credit against one month of dues/premiums.
- Individual (including Medicare Supplement) and fully-insured group
customers will each get a 54 percent credit against one month of
dues/premiums.
- Customers with continuous fully-insured coverage in the same
eligible product from August 1 through December 1, 2011 (other than
certain government programs, like Medicare Advantage and Medicare
Prescription Drug Plans, whose contracts do not provide a way to give
such credits) are eligible for the credit. The average credit will vary
depending on the monthly premiums.
-
$10 million in additional funds will be awarded to
provider groups that applied for grants to help them participate in
Accountable Care Organizations (ACOs) after our last pledge
announcement.
- $2 million will support a future community investment with more details to come.
