• Medicare Advantage: We serve the growing Medicare population by providing Medicare Advantage products to approximately 105,000 members as of January 1, 2015. Approximately 31% of the Medicare population in the United States is currently enrolled in Medicare Advantage plans; a type of Medicare health plan offered by private companies that contract with
During September 2014, we received notice that the ACOs we formed in partnership with primary care physicians and other healthcare professionals generated $66 million in total program savings for CMS, as part of the MSSP for the first performance year of the MSSP (2012 and 2013). Of our 30 ACOs with start dates in 2012 and 2013, the results showed that:
The loss before income taxes from our Corporate & Other segment increased by $211.2 million for the year ended December 31, 2013 compared to 2012. This was due primarily to asset impairment charges related to APS Healthcare totaling $189.4 million, as well as an increase in business development costs, legal costs related to APS Healthcare, restructuring charges and lower profitability of our APS Healthcare business.
Net premiums. Net premiums for the Medicare Advantage segment decreased by $223.7 million compared to the year ended December 31, 2013, primarily driven by lower membership in our non-core service areas as well as lower premium yield per member resulting from a change in membership mix. In 2014, net premiums included $14.6 million of favorable prior period items compared to $33.2 million of favorable prior period items in 2013.
ACA fee. The ACA fee for the year ended December 31, 2014 amounted to $22.9 million, or 1.6% of 2014 net premiums. The ACA fee is included in the calculation of minimum medical loss ratios under the ACA.
Net investment income. Net investment income for the year ended December 31, 2014 included $2.7 million related to a distribution received on a cost-method investment.
(2)Reflects minimum obligations on our outsourcing contracts, See "Outsourcing Arrangements" in Part 1, Item 1 of this annual report on Form 10-K. The amount of service provided under the contracts and the levels of business processed affect our actual monthly payments. The above table includes only the minimum amounts required under the contracts. Based upon anticipated future service levels, we expect that our total actual payments for purchase obligations will exceed the amounts presented in the above schedule.
• working capital loans to our Medicaid HMO-Periodically, our parent company lends cash to our Medicaid HMO, Today's Options of New York, Inc., known as TONY, to bridge the timing
In addition, the parent company from time-to-time engages in corporate finance activities that generate the following sources and uses of liquidity:
The claim reserve balances at December 31, 2013 settled during 2014 for $3.8 million less than originally estimated. This prior year development represents 0.2% of the incurred claims recorded in 2013.
(2)Reflects estimated potential changes in medical and other expenses payable, caused by changes in annualized claims trend used for the estimation of per member per month incurred claims for the most recent three months.
(5)Represents goodwill disposed of in connection with the sale of TOOK and SCOK of $3.8 million and $0.4 million, respectively. See Note 5-Business Combinations.
During our review of recoverability of amortizing intangible assets in the fourth quarter of 2013, we determined that undiscounted cash flows from our APS Healthcare reporting unit were less than the carrying value of our related APS Healthcare amortizing intangible assets, indicating that they were no longer fully recoverable and recorded an impairment charge. There were no other impairments of our amortizing intangible assets during 2014 or 2013. See additional discussion at Note 8-Goodwill and Other Intangible Assets in the Notes to Consolidated Financial Statements.
We have a security monitoring process overseen by our Investment Committee, consisting of investment and accounting professionals who identify securities that, due to specified characteristics, as described below, we subject to an enhanced analysis on a quarterly basis. We review our fixed maturity securities at least quarterly to determine if an other-than-temporary impairment is present based on specified quantitative and qualitative factors. The primary factors that we consider in evaluating whether a decline in value is other- than-temporary are: