Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Joshua Raskin of Barclays Capital. Please go ahead.
Joshua Raskin – Barclays Capital
Hi, thanks. Good evening. First question, just on the membership growth in the economy, it sounded like you guys alluding to the 28 years of history in the business. I’m curious if you look back, maybe the most recent, the early 2000 period, or even early ?90s, and I guess you could look back to the ?80s as well, what are your certain expectations for membership growth? What would you think sort of in an ’09 period in terms of organic membership?
Mario Molina
Well, we’re not making projections today about 2009, but we do know that there are some metrics you can apply to correlate between unemployment and growth in the Medicaid population. We do anticipate it to grow. And as John mentioned, there is going to be a delay because people have to spend down their assets before they qualify for Medicaid. But I think we can confidently say that the pool of Medicaid beneficiaries should grow in 2009.
Joshua Raskin – Barclays Capital
Okay. But I guess not necessary for ’09 guidance, Mario, but maybe even looking back historically, maybe what are some of the data points that you saw? What was sort of growth rates you would expect, or at least –?
John Molina
Yes. Josh, I think Kaiser Family Foundation put out some numbers recently, and they suggest that for every 1% increase in unemployment, you get about another 1 million people eligible for Medicaid and SCHIP.
Mario Molina
And just to be clear, at the end of John’s comments, when he used the word thus, I want everyone to know that John regularly uses the word thus in conversation.
Joshua Raskin – Barclays Capital
Yes, I’ve got it in my notes several times. Second question, just around the risk-adjusted revenues in Medicare, I know it’s still a very small part of the book. It was about $2.6 million. Were those final settlements related to ’07, or what would be – I don’t know if Joe is around, but what exactly was the accounting for that one?
Joseph White
Hi, Josh. Yes, it’s Joe. Those are related to 2007 and 2008, risk-adjusters and a part fee settlement.
Joshua Raskin – Barclays Capital
Okay. So that’s just you are catching up – so some of that I guess would theoretically be related to (inaudible) as well.
- To read the full transcript on Seeking Alpha, click here »
