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directors and officers
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While these plans were originally designed for customers in the small group market, we believe
they also will help answer the needs of large group customers. They can be as much as 50 percent
less costly than comparable preferred provider organization health plans.
WESTERN REGION MEDICARE ADVANTAGE AND PART D PRESCRIPTION DRUG PLANS
Similar to our commercial focus, our Medicare Advantage (MA) strategy is to provide seniors with
comprehensive benefits at affordable prices. In fact, in 30 of the 41 counties in our
Western Region
where we offer MA plans, we do not charge members a supplemental premium,
yet include benefits
that are more generous than those in the traditional Medicare program.
In 2010, we focused on carefully matching these benefits and premiums to help meet the needs of
our members and achieve stable financial performance.
In November 2010, we received notice from the Centers for Medicare & Medicaid Services (CMS)
that the company’s Medicare operations were being sanctioned due to certain issues related to our
compliance with certain Medicare Part D regulations. We are actively working with CMS to address
its concerns.
WESTERN REGION MEDICAID PLANS
In 2010, we enhanced our strong position as a leader in the California Medicaid market. California's
Medicaid program, known as Medi-Cal, is one of the lowest cost Medicaid programs in the
United States.
Membership in our Medi-Cal and other state programs increased by 5 percent in 2010 as the
economic environment increases the number of those eligible for the program.
As with our commercial and Medicare plans, we believe that our close provider partnerships are an
integral part of our success.