Question-and-Answer Session
Operator
(Operator Instructions). First question is from Josh Raskin - Lehman Brothers.
Josh Raskin - Lehman Brothers
Hi, thanks. Two question for you: one, on New Mexico, could you give us a rough estimate of what you think the size is, assuming that the new contract is similar to what’s currently in place; I know obviously Maricopa is not great example of that.
René Lerer
Clearly, we’ve said all along, there is no other Maricopa. We haven’t seen a lot of visibility obviously on the revenues in the State of New Mexico, but our expectation would be probably somewhere in the $250 to $300 million range.
Josh Raskin - Lehman Brothers
That’s on an annual basis?
René Lerer
Yes.
Josh Raskin - Lehman Brothers
Okay, perfect. And then a second question, the public sector segment profit number was particularly strong even if I x out some of the favorable development that you saw. I’m just curious on a sequential basis from the first quarter to the second quarter, how much of that increase was Maricopa County and were there any other areas that provided some of that benefit?
René Lerer
The benefit was really across the entire book. We typically wouldn’t give specifics for any individual account. But we saw improvements on care and administrative costs really across the entire book in public sector.
Josh Raskin - Lehman Brothers
Okay. And in terms of a run rate, should we think about the current quarter segment profit less the favorable development as a good run rate for that business?
Mark Demilio
Josh, that’s a lot of ins and outs there that will happen in the second half of the year. Remember we’re going to lose the one region of TennCare as of November.
Basically, I think, take what we gave you as the new guidance, which we said is going to be $10 million higher than the previous guidance. Then you’ve got seasonality and other things, we didn’t give quarter-by-quarter. But you at least know what the second half has to be to hit that guidance.
Josh Raskin - Lehman Brothers
Okay, thanks, Mark.
Operator
Next question is from Daryn Miller - Goldman Sachs.
Daryn Miller - Goldman Sachs
René quick question, just in terms of the decision to go with the repurchase versus the dividend; I was wondering if you could just provide a little bit of color on that.
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