Well the cat’s finally out of the bag… Read this story about how PacifiCare 2Q Profit Jumps 22 Percent. The second and third paragraphs are the important ones.
…the company also said it is selling its Guam operations and reduced its membership growth forecast to reflect the loss of 27,000 members in those commercial health plans.
Chairman and Chief Executive Howard Phanstiel said in a conference call that the Guam business, while profitable, was “volatile” and did not post sufficient returns to retain the unit. PacifiCare said it now expects commercial membership to increase by 1.5 percent to 2.5 percent over 2004, down from its earlier prediction for 5 percent to 6 percent growth.
KUAM has the story, pretty much straight from the press release that was put out today.