square feet for office space, subsidiary operations and customer service centers for the various markets
in conjunction with the accompanying audited consolidated financial statements and notes thereto. The organization of our Management’s Discussion and Analysis of Financial Condition and Results of Operations is as follows:
instances, we have introduced products in one market that we were already administering in another.
other incentive arrangements. Global capitation arrangements limit our exposure to the risk of increasing
reserves, lag-based estimates receive little or no credibility weighting in the more current incurral
have historically developed favorably suggesting that the accrued liabilities calculated from the models
to be other-than-temporary is accounted for as a realized loss and the write down is included in earnings.
but are not limited to, trade and service marks, non-compete agreements, customer lists and licenses.
We were not significantly affected by the implementation of this statement.
date of acquisition. The purchase price for each business combination was allocated to the assets, including
the identifiable intangible assets, and liabilities based on estimated fair values. The excess of the
eleven months of interest compared to twelve months in 2003. Also contributing to the increase is a
for the year ended 2002 was 8.6% and the average trend for the three year period ended December 31,
year ended December 31, 2003 improved over the prior year as result of fewer repurchases of our common
in accounts payable and other accrued liabilities. The latter was a result of increases in additional
2001 and 2002 and an increase in our deferred tax liability. These increases were offset by a decrease
up to $250,000 per single claim, $10 million per class action claim, and an aggregate policy limit of
that existing markets have potential for premium growth for our commercial and governmental products.
our ability to attract new members or to increase or maintain our premium rates, which would adversely
state and local authorities. Legislation or other regulatory reform that increases the regulatory requirements
course of our business, including litigation based on new or evolving legal theories, that could significantly
then ended. Our audits also included the financial statement schedule listed in the Index at Item 15(a).
an unqualified opinion on those statements and schedule before the restatement disclosures described
and disclosures in the financial statements. An audit also includes assessing the accounting principles
their operations and their cash flows for the years then ended in conformity with accounting principles
are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
Investments in Debt and Equity Securities,” issued by the Financial Accounting Standards Board (“FASB”).
the recent sales of similar companies. The market capitalization approach is based on market value of
IBNR liabilities, the Company employs standard actuarial reserve methods that are specific to each market’s
values. The excess of the purchase price over the net identifiable assets acquired was allocated to
Total unamortized other intangible assets $ 100 $ -- $ 100
the years ended December 31, 2003, 2002 and 2001 was $2.5 million, $3.1 million and $2.6 million, respectively.
as available-for-sale securities and, accordingly, records unrealized gains and losses, except for those
on these sales for the year ended December 31, 2002, and gross investment gains of $4.7 million and
do not meet the criteria for an other-than-temporarily impaired investment. These securities have an
and not the credit ratings associated with these securities. These investments are not in high risk
stock and other stock-based awards at the discretion of the Compensation and Benefits Committee of the
Inc. 401(k) and Investment Plan (the “MAH Plan”); and the Altius SaveMore 401(k) Plan (the “Altius Plan”).
Coventry Health Care, Inc. common stock. Effective January 1, 2004, T. Rowe Price became the custodial
merger agreement, the surviving entity (1) became an adopting employer of the Savings Plan, and/or (2)
vest in the Company’s matching contributions ratably over two years. All costs of the SERP are funded
a transaction to sell $175.0 million original 8.125% senior notes due February 15, 2012 in a private
the plaintiffs have alleged violations of the federal racketeering act, Racketeer Influenced and Corrupt
Company’s physician contracts. In response to the motion to dismiss, the trial court dismissed several
briefed and the parties are awaiting a date for oral argument. The trial court has certified various
the Company may be the target of other similar lawsuits, the Company believes there is no valid basis
among other things, verify that the premiums established under its contracts are in compliance with
care entities. RBC is a method of measuring the minimum amount of capital deemed appropriate for a managed
aggregate cost of $65.5 million. The Company did not purchase any shares of its common stock in 2003
plan wholly owned by Rockford Health Systems, covers a seven-county service area and provides health