Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question comes from Thomas Carroll - Stifel Nicolaus & Company, Inc.
Thomas Carroll - Stifel Nicolaus & Company, Inc.
Administratively, could you maybe tell us what the positive PPD in the quarter was and maybe how much of it was from Texas?
James W. Truess
In the quarter we were benefited net about $0.08 from development, and that comes about let me just break down the pieces here for you - we had net favorable development on the medical line that helped us about $0.16 and that was offset by $0.08 of out of period experience rebate, so that got us to the net $0.08.
Thomas Carroll - Stifel Nicolaus & Company, Inc.
And then I just wanted to ask a clarification on your New Jersey litigation. And I understand you can't talk much about it, but was there a provision in your contract with Centene that said we, AMERIGROUP, when we find out what the new risk adjustment scores are, have the ability to step away from this agreement? Was it that explicit?
James G. Carlson
I have to be a little careful about that because of the litigation, but I will say that anytime we're engaged in an M&A opportunity we always include a material adverse effect clause. And our view on such clauses is, unless something is specifically scheduled out as an exception to it, it affects all features of a transaction. So, as you can imagine, that's a portion of the contract that we're basing our claim that we think this agreement was broken effectively based upon contractual terms.
Thomas Carroll - Stifel Nicolaus & Company, Inc.
Florida, you mentioned a 1.7% rate decrease between March and June. Is that on top of the 2.7% number that we've previously discussed?
John E. Little
No, that's in place of. The original estimates were in the 2.5% to 3%, but when they factor in some of the provisions and our member mix, it comes out to about 1.7%, some of which is passed through.
Thomas Carroll - Stifel Nicolaus & Company, Inc.
Okay, so that's favorable to AMERIGROUP, then, obviously here. So we'll get a new rate change in Florida beginning July 1?
John E. Littel
Correct. I'm sorry, Tom, that's September 1st.
Operator
Your next question comes from Joshua Raskin - Barclays Capital.
Joshua Raskin - Barclays Capital
First question just on the guidance. I think, Jim, you'd mentioned that the S-SCHIP reauthorization, the stimulus bill, and then even higher levels of unemployment, none of that was in your guidance, and I'm just curious - you know, we've seen signed bills at this point what exactly are we waiting for and should we assume then that your guidance did not assume actuarially sound rate increases in your states?
- To read the full transcript on Seeking Alpha, click here »
