Cypress-based health plan provider PacifiCare Health Systems Inc. raised its 2006 revenue expectations on Tuesday on a higher estimate for Medicare reimbursement from the federal government.
Shares of PacifiCare were 3.8% higher in Tuesday trading to $58.6.
PacifiCare said it expected premium increases for Medicare Advantage, the new private HMO option for Medicare patients, of between 6.5% and 7% beginning in 2006.
The company said the rates would lead to increased revenue, broader options and more members in its Secure Horizons Medicare plans.
Analysts had projected PacifiCare to post revenue of some $16.3 billion in 2006.
PacifiCare historically has been heavily involved in providing health plans to Medicare recipients, even before President Bush signed a 2003 law that was intended to encourage more private sector participation in the health plan.
Medicare covers more than 40 million elderly and disabled Americans.
