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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): NOVEMBER 6, 1996
OXFORD HEALTH PLANS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-19442 06-1118515
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(State or other jurisdiction) (Commission (IRS Employer
of incorporation) File Number) Identification No.)
800 Connecticut Avenue, Norwalk, Connecticut 06854
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(Address of principal executive offices) (Zip Code)
(203) 852-1442
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
Registrant's Press Release, dated November 6, 1996, is attached as an
Exhibit hereto and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
(99) Press Release dated November 6, 1996
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
OXFORD HEALTH PLANS, INC.
Date: November 6, 1996 By: /s/ ANDREW B. CASSIDY
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ANDREW B. CASSIDY
Chief Financial Officer
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
EXHIBIT INDEX
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Exhibit Page
Number Description of Document Number
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(99) Press Release dated November 6, 1996 4
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Re: Oxford Health Plans, Inc.
800 Connecticut Avenue
Norwalk, CT 06854
For Further Information:
Stephen F. Wiggins
Chairman and CEO
(203) 852-1442
FOR IMMEDIATE RELEASE
November 6, 1996
OXFORD HEALTH PLANS REPORTS 77 PERCENT EARNINGS INCREASE IN THIRD QUARTER
NORWALK, CONNECTICUT, NOVEMBER 6, 1996--Oxford Health Plans, Inc.
(NASDAQ:OXHP) today reported that third quarter 1996 net earnings rose 77
percent on a revenue increase of 69 percent when compared with the third quarter
of 1995. The earnings growth was driven by increased enrollment in the Company's
fully insured programs, stable medical expense trends and a continued
improvement in the ratio of administrative expenses to operating revenues.
Total revenues for the third quarter ended September 30, 1996 reached
$811.3 million, a 69 percent increase from $480.2 million a year ago. Operating
earnings jumped 82 percent to $47.8 million compared with $26.3 million in the
third quarter of 1995. Net earnings increased 77 percent to $26.7 million, or
$.33 per share, from $15.1 million, or $.21 per share, in the prior year's third
quarter.
For the nine months ended September 30, 1996, the Company's revenues
totaled $2.2 billion, a 79 percent increase from $1.2 billion for the first nine
months of 1995. Operating earnings rose to $120.7 million, an increase of 82
percent from the $66.5 million earned in the first nine months of 1995, while
net earnings for the first nine months of 1996 increased 84 percent to $67.6
million, or $.86 per share, from $36.8 million, or $.50 per share, for the nine
months ended September 30, 1995.
Prior year per share amounts have been restated to reflect the
two-for-one stock split effectuated as a dividend declared in March 1996 and
distributed to stockholders in April 1996.
Oxford's enrollment totaled approximately 1,442,200 members at
September 30, 1996, an increase of over 120,000 during the third quarter of 1996
and approximately 57 percent higher than membership at the end of last year's
third quarter. All of this new membership has come from fully insured enrollment
which has continued to grow in the fourth quarter of 1996. Almost 58,000 net new
members have enrolled since the end of September 1996, bringing total membership
to approximately 1,500,000 as of November 1, 1996. The strong earnings and
enrollment growth continue to reflect the popularity and quality of the
Company's products.
-more-
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Oxford Health Plans, Inc.
November 6, 1996
The Company's medical-loss ratio for third quarter of 1996 was 80.2%,
in line with expectations. The Company believes that it is benefiting from
better provider contracts and strengthened medical management programs.
Administrative expenses were 15.4% of operating revenue for the third
quarter of 1996, compared with 18.0% for the third quarter of 1995 and 18.7% for
the full year of 1995.
"Favorable medical cost trends and a continued reduction in the ratio
of administrative expenses to operating revenues in the third quarter
contributed to a 10% improvement in operating margins compared to the second
quarter of 1996," said Stephen F. Wiggins, Oxford's Chairman and Chief Executive
Officer.
In April 1996, the Company completed a registered public offering of
5,227,272 shares of newly issued post split shares of common stock from which
the Company realized net proceeds of approximately $220 million.
Oxford's product lines include traditional health maintenance
organizations, point-of service plans, third-party administration of employer
funded benefit plans, Medicare and Medicaid plans, and dental plans. Oxford
markets its health plans to employers in New York, New Jersey, Pennsylvania,
Connecticut and New Hampshire through its direct sales force and through
independent insurance agents and brokers.
FINANCIAL TABLES FOLLOW
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EXHIBIT 99
OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(IN THOUSANDS, EXCEPT PER SHARE AND MEMBERSHIP DATA)
(UNAUDITED)
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THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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1996 1995 1996 1995
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Revenues:
Premiums earned $ 797,623 471,625 2,158,573 1,206,089
Third-party administration, net 2,383 3,247 7,911 8,941
Investment income, net 11,303 5,284 28,203 12,948
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Total revenues 811,309 480,156 2,194,687 1,227,978
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Expenses:
Health care services 639,917 368,120 1,730,149 938,625
Marketing, general and administrative 123,554 85,705 343,867 222,884
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Total expenses 763,471 453,825 2,074,016 1,161,509
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Operating earnings 47,838 26,331 120,671 66,469
Equity in net loss of affiliate (1,500) (850) (3,550) (2,473)
Other income (expense), net (126) 108 (36) 120
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Earnings before income taxes 46,212 25,589 117,085 64,116
Provision for income taxes 19,562 10,496 49,460 27,302
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Net earnings $ 26,650 15,093 67,625 36,814
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Earnings per common and common
equivalent share:
Primary $ .33 .21 .86 .50
Fully diluted $ .33 .20 .85 .50
Weighted average common stock and
common stock equivalents outstanding:
Primary 80,880 73,476 79,089 73,050
Fully diluted 81,362 74,306 79,459 73,904
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Membership at
September 30
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MEMBERSHIP HIGHLIGHTS 1996 1995 (Decrease)
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Freedom Plan 958,300 616,760 341,540
HMO 181,800 107,110 74,690
Medicare 113,400 56,050 57,350
Medicaid 147,600 94,000 53,600
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Total Fully Insured 1,401,100 873,920 527,180
Self-funded 41,100 44,100 (3,000)
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Total Membership 1,442,200 918,020 524,180
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(IN THOUSANDS, EXCEPT SHARE DATA)
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ASSETS
SEP. 30, DEC. 31,
1996 1995
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Current assets: (Unaudited)
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Cash and cash equivalents $ 110,207 58,450
Short-term investments-available for sale (at market value) 721,763 310,197
Premiums receivable (net of allowance for doubtful
accounts of $2,460 in 1996 and $3,029 in 1995) 139,962 96,278
Other receivables 22,580 15,260
Prepaid expenses and other current assets 6,294 3,563
Deferred income taxes 11,589 8,443
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Total current assets 1,012,395 492,191
Property and equipment, at cost (net of accumulated depreciation and
amortization of $58,650 in 1996 and $30,074 in 1995) 106,558 97,414
Other noncurrent assets 28,801 19,171
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Total assets $1,147,754 608,776
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Medical costs payable $ 525,870 300,508
Trade accounts payable and accrued expenses 60,791 36,508
Income taxes payable 6,700 1,428
Unearned premiums 18,784 50,299
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Total liabilities 612,145 388,743
Stockholders' equity:
Preferred stock, $.01 par value, authorized 2,000,000 shares -- --
Common stock, $.01 par value, authorized 200,000,000
shares; issued and outstanding 76,094,097 in 1996
and 34,390,401 in 1995 761 343
Additional paid-in capital 364,266 116,639
Retained earnings 163,792 96,167
Unrealized net appreciation of investments 6,790 6,884
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Total stockholders' equity 535,609 220,033
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Total liabilities and stockholders' equity $1,147,754 608,776
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