This excerpt taken from the CVH 10-K filed Mar 9, 2006.
As described earlier, the effects of Hurricane Katrina affected the operations of our local Louisiana Health Plan. The Louisiana Department of Insurance imposed an emergency order governing claim payments and premium collection procedures. The Louisiana Department of Insurance emergency order rules prohibited the termination of members from August 26, 2005 to November 30, 2005 and required that members be allowed to access out-of-network providers at the in-network benefit level. Additionally, our New Orleans in-network provider community has changed as a result of the closure of certain facilities within our New Orleans provider network. As a result, medical costs have increased significantly. The reduced membership, allowances for premium receivables and higher medical costs experienced by our Louisiana Health Plan reduced our fourth quarter earnings by approximately $0.04 per diluted share. That order expired at the end of November 2005 and our Louisiana Health Plan is back to more normal operating protocols. Going forward, we expect the Louisiana Health Plan to operate as a profitable, but smaller, business.
This excerpt taken from the CVH 10-Q filed Nov 8, 2005.
On August 29, 2005, Hurricane Katrina caused significant destruction and flooding in Southern Louisiana, most notably in the greater New Orleans area. Coventry operates a local health plan in Louisiana covering approximately 76,000 members and employing 56 Louisiana residents. Of the 76,000 members, approximately 63,000 are in the greater New Orleans area. We have taken steps to ensure continuity of operations and to comply with temporary requirements imposed by the Louisiana Department of Insurance.
As a result of the effects of Hurricane Katrina, we recorded an allowance for premium receivables of approximately $3.5 million against the uncollected September 2005 premiums for our Louisiana operations. Although we did not incur a loss with respect to our Louisiana operations in the third quarter of 2005, a net loss in our Louisiana operations of $.03 to $.05 per share is possible in the fourth quarter of 2005.