I was not aware or maybe it has not been as publicized as the Venture Capital firms of Blue Cross that one existed. The healthcare companies still have the “reserves” to cover unanticipated expenditures and in the related reading, the state of Maryland is questioning how large the funds really are. I had pondered that question once myself and combined with all health insurance companies in the US, it could be 1-3 trillion, again just using some rough figures on web data I have run across relating. It just makes me wonder why insurance companies like AIG had no reserves as the funds are also supposed to help guard against a company being insolvent. BD
We knew UnitedHealth paid $350 million in the fourth quarter to settle lawsuits over out-of-network reimbursements. But the company’s earnings announcement, out this morning, brings news of another financial hit: a $50 million write-down on the company’s $200 million venture capital program.
For a company as big as UNH (fourth-quarter revenue: $20.45 billion), the VC write-down amounts to a rounding error. But it’s worth noting as one more sign of the times.