Apr 25, 2018

The winners of Florida's new Medicaid contracts

Florida Gov. Rick Scott's administration awarded new Medicaid contracts to insurers. Photo: Joe Raedle/Getty Images

Florida has awarded new five-year Medicaid contracts collectively worth more than $15 billion annually to a handful of health insurance companies, most of which already had contracts with the state.

The big picture: Florida runs one of the largest Medicaid programs in the country, making these contracts that start in 2019 extremely important to the insurers that get them as well as the 3.1 million low-income people who get care through the plans.

The winners: Incumbent insurers Humana, WellCare Health Plans and Centene gained hundreds of thousands of new Medicaid members. Gary Taylor of J.P. Morgan Securities estimates that translates into $1.3 billion in new revenue for Humana, $500 million in new revenue for WellCare and $264 million in new revenue for Centene.

  • Aetna, Anthem and UnitedHealth Group also retained contracts, although they didn't gain market share.

The losers: Magellan Health and Molina Healthcare, both of which had contracts with Florida, were completely shut out. Magellan already plans on appealing the state's decision. Wall Street investors hammered Magellan's stock, which fell 17% Wednesday, on the prospect of the company losing more than $600 million, or a third of its annual revenue.

Some context: Most health insurers have a 2% profit margin on these kinds of Medicaid contracts.

Go deeper

Sanders hits new stratosphere of online interest

Data: NewsWhip; Chart: Chris Canipe/Axios — Note: Hover over the weekly rank on desktop to see articles and interactions for each candidate and issues.

For the second straight week, Bernie Sanders has hit the high watermark for online attention in the Democratic primary, according to data from NewsWhip provided exclusively to Axios.

Why it matters: It's not just quantity. The sentiment of the top stories about Sanders has been more positive than his top Democratic rivals — particularly Michael Bloomberg, whose recent online attention has been overwhelmingly negative.

Global coronavirus cases spread as U.S. soldier tests positive in South Korea

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

A 23-year-old American soldier stationed at Camp Carroll in South Korea has tested positive to the novel coronavirus, as the outbreak spreads to more countries.

The big picture: COVID-19 has killed more than 2,700 people and infected over 81,000 others. By Wednesday morning, South Korea had the most cases outside China, with 1,146 infections. Europe's biggest outbreak is in Italy, where 322 cases have been confirmed.

Go deeperArrowUpdated 1 hour ago - Health

In photos: How coronavirus is impacting cities around the world

Revellers take part in the "Plague Doctors Procession" in Venice on Tuesday night during the usual period of the Carnival festivities, most of which have been cancelled following the coronavirus outbreak in northern Italy. Photo: Andrea Pattaro/AFP via Getty Images

The novel coronavirus has spread from China to infect people in more than 40 countries and territories around the world, killing over 2,700 people.

The big picture: Most of the 80,000 COVID-19 infections have occurred in mainland China. But cases are starting to surge elsewhere. By Wednesday morning, the worst affected countries outside China were South Korea (1,146), where a U.S. soldier tested positive to the virus, Italy (332), Japan (170), Iran (95) and Singapore (91). Just Tuesday, new cases were confirmed in Switzerland, Croatia and Algeria.

See photosArrow4 hours ago - World