PacifiCare Reaffirms Guidance for 2001 First Quarter and Full Year

Apr 05, 2001, 01:00 ET from PacifiCare Health Systems, Inc.

    SANTA ANA, Calif., April 5 /PRNewswire/ -- In conjunction with its annual
 investor conference being held today, PacifiCare Health Systems, Inc.
 (Nasdaq:   PHSY) is reaffirming the company's previously disclosed earnings per
 share guidance of $0.35 per share for the first quarter of 2001 and $2.94 for
 the full year 2001.
     The company is also disclosing that its daily balance of free cash
 averaged $186 million during March.  "The strengthening of the company's free
 cash balances positions PacifiCare to resume repayment of outstanding
 indebtedness in the second quarter," said Chief Financial Officer Gregory W.
 Scott.
     The company previously disclosed that it had $133 million of free cash as
 of February 1, 2001.
     Membership enrollment is also tracking with the company's prior guidance
 pointing to a planned member-month decline of 7 to 8% in 2001 over 2000 as a
 result of the company's exit from certain commercial and Medicare markets.
 Through February 2001, membership in the company's Medicare + Choice program
 totaled 1,047,000, down 1% from December 31, 2000, while commercial membership
 was 2,731,000, off 7.5% from year-end.
     PacifiCare plans to report first quarter 2001 financial results on
 May 2, 2001.  Slide presentations made at the investor conference will be
 available for viewing beginning April 5 on the company's web site:
 www.pacificare.com.
 
     The above statements concerning earnings per share estimates, repayment of
 debt and membership trends are forward-looking statements within the meaning
 of the Federal securities laws.  They may involve a number of risks and
 uncertainties and actual results could differ materially.  Important factors
 that could cause results to differ materially from those expected by
 management include, but are not limited to, failure to reduce medical care
 ratios either because of higher utilization under risk-based contracts or for
 other reasons, failure to price products to offset medical costs, failure to
 sustain membership or achieve expected premium per member increases due to
 premium increases, benefit adjustments, market exits or other factors, an
 unfavorable pricing environment, failure to continue current cost control and
 pricing strategies or to implement planned changes, actual medical claims
 results differing from current estimates, provider financial problems,
 instability or bankruptcy, unexpected increases in competition, inability to
 achieve expected efficiencies in operations or effectively control health care
 costs, new regulations or laws relating to capitation, Medicare reimbursement
 formulas, benefit mandates, service, utilization management, provider
 contracts and similar factors.  Additional information on factors, risks, and
 uncertainties that could potentially affect the company's financial results
 may found in documents on file with the Securities and Exchange Commission,
 including the December 31, 2000 Form 10-K.
 
     Dedicated to making people's lives better, PacifiCare Health Systems is
 one of the nation's largest health care services companies.  Primary
 operations include managed care products for employer groups and Medicare
 beneficiaries in eight states and Guam serving approximately 4 million
 members.  Other specialty products and operations include pharmacy benefit
 management, behavioral health services, life and health insurance and dental
 and vision services.
 
 

SOURCE PacifiCare Health Systems, Inc.
    SANTA ANA, Calif., April 5 /PRNewswire/ -- In conjunction with its annual
 investor conference being held today, PacifiCare Health Systems, Inc.
 (Nasdaq:   PHSY) is reaffirming the company's previously disclosed earnings per
 share guidance of $0.35 per share for the first quarter of 2001 and $2.94 for
 the full year 2001.
     The company is also disclosing that its daily balance of free cash
 averaged $186 million during March.  "The strengthening of the company's free
 cash balances positions PacifiCare to resume repayment of outstanding
 indebtedness in the second quarter," said Chief Financial Officer Gregory W.
 Scott.
     The company previously disclosed that it had $133 million of free cash as
 of February 1, 2001.
     Membership enrollment is also tracking with the company's prior guidance
 pointing to a planned member-month decline of 7 to 8% in 2001 over 2000 as a
 result of the company's exit from certain commercial and Medicare markets.
 Through February 2001, membership in the company's Medicare + Choice program
 totaled 1,047,000, down 1% from December 31, 2000, while commercial membership
 was 2,731,000, off 7.5% from year-end.
     PacifiCare plans to report first quarter 2001 financial results on
 May 2, 2001.  Slide presentations made at the investor conference will be
 available for viewing beginning April 5 on the company's web site:
 www.pacificare.com.
 
     The above statements concerning earnings per share estimates, repayment of
 debt and membership trends are forward-looking statements within the meaning
 of the Federal securities laws.  They may involve a number of risks and
 uncertainties and actual results could differ materially.  Important factors
 that could cause results to differ materially from those expected by
 management include, but are not limited to, failure to reduce medical care
 ratios either because of higher utilization under risk-based contracts or for
 other reasons, failure to price products to offset medical costs, failure to
 sustain membership or achieve expected premium per member increases due to
 premium increases, benefit adjustments, market exits or other factors, an
 unfavorable pricing environment, failure to continue current cost control and
 pricing strategies or to implement planned changes, actual medical claims
 results differing from current estimates, provider financial problems,
 instability or bankruptcy, unexpected increases in competition, inability to
 achieve expected efficiencies in operations or effectively control health care
 costs, new regulations or laws relating to capitation, Medicare reimbursement
 formulas, benefit mandates, service, utilization management, provider
 contracts and similar factors.  Additional information on factors, risks, and
 uncertainties that could potentially affect the company's financial results
 may found in documents on file with the Securities and Exchange Commission,
 including the December 31, 2000 Form 10-K.
 
     Dedicated to making people's lives better, PacifiCare Health Systems is
 one of the nation's largest health care services companies.  Primary
 operations include managed care products for employer groups and Medicare
 beneficiaries in eight states and Guam serving approximately 4 million
 members.  Other specialty products and operations include pharmacy benefit
 management, behavioral health services, life and health insurance and dental
 and vision services.
 
 SOURCE  PacifiCare Health Systems, Inc.