Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Tom Carroll – Stifel Nicolaus.
Tom Carroll – Stifel Nicolaus
I wondered if you could give us a little more commentary on the ABD program in Ohio that saw the sizeable sequential drop in the medical loss ratio. A competitor of yours in the same market had a similar drop, and I’m wondering if there was a sizeable possible development in the quarter or something else that you could maybe tell us a little bit more about.
John Molina
No, Tom. It wasn’t a sizeable development. I think the ABD is where we had probably the biggest swings in terms of some of the contracting efforts. Also, as you recall, last year we brought the behavior health in house, and the majority of those costs were for the ABD population.
Terry Bayer
Tom, I’ll just add that our ABD enrollment grew toward the latter part of last year. We had members new for the first time, and as we implemented our program, some of those costs came out, but our contract renegotiation and our medical management efforts were really across both product lines.
Tom Carroll – Stifel Nicolaus
Secondly, could you maybe give us some comment on your reserving practices, which will probably be a similar conversation like we had in the past, but it’s just been a topic of discussion recently with Molina.
Dr. Mario Molina
Reserving methods haven’t changed, Tom.
Operator
Your next question comes from the line of Joshua Raskin – Barclays Capital.
Joshua Raskin – Barclays Capital
With Florida, how are you accruing medical expenses now that you’re live on risk basis there?
Joseph White
Like we’ve talked about before, we’re just accruing those at 90% of premium until the claims have had time to develop.
Joshua Raskin – Barclays Capital
I noticed there was a slight deviation from that. That was the only reason I asked. Is there something in the math that makes that?
Joseph White
Yes. It’s just the way the math worked out frankly. No real change in facts as we know them.
Joshua Raskin – Barclays Capital
The $0.04 gain in the quarter, is that now included in the guidance and should we think about there being some 4-cent offset adverse with California or something, or should we just think about, look, we’ve got a 20-cent range, it’s 4 cents. Maybe we’ll be towards the higher end now or something like that?
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