v2.4.1.9
Contingencies Contingencies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]  
Kentucky Spirit Performance Bond $ 25cnc_KentuckySpiritPerformanceBond
Commonwealth of Kentucky Alleged Associated CMS Expenditures - High End of Range 134cnc_CommonwealthofKentuckyAllegedAssociatedCMSExpendituresHighEndofRange
Loss Contingency, Allegations On July 5, 2013, the Company's subsidiary, Kentucky Spirit Health Plan, Inc. (Kentucky Spirit), terminated its contract with the Commonwealth of Kentucky (the Commonwealth). Kentucky Spirit believes it had a contractual right to terminate the contract and filed a lawsuit in Franklin Circuit Court seeking a declaration of this right. The Commonwealth has alleged that Kentucky Spirit's exit constitutes a material breach of contract.  The Commonwealth seeks to recover substantial damages and to enforce its rights under Kentucky Spirit's $25 million performance bond. On July 3, 2014, the Commonwealth's attorneys asserted in a letter to the Cabinet for Health and Family Services that the Commonwealth's expenditures due to Kentucky Spirit's departure range from $28 million to $40 million plus interest, and that the associated CMS expenditures range from $92 million to $134 million. Kentucky Spirit disputes the Commonwealth's alleged damages, and is pursuing its own litigation claims for damages against the Commonwealth. On February 6, 2015, the Kentucky Court of Appeals affirmed a Franklin Circuit Court ruling that Kentucky Spirit does not have a contractual right to terminate the contract early. The Court of Appeals also found that the contract’s liquidated damages provision “is applicable in the event of a premature termination of the Contract term.” The contract measures liquidated damages as “ten percent (10%) of the Contractor’s Capitation Payment.” The Court of Appeals noted that the contract defines “capitation payment” as the amount to be paid monthly to the Contractor by the Commonwealth. Kentucky Spirit intends to seek Kentucky Supreme Court review of the finding that its departure constituted a breach of contract. The Commonwealth may seek review of the ruling that the liquidated damages provision is applicable in the event of a premature termination. Kentucky Spirit also filed a lawsuit in April 2013, amended in October 2014, in Franklin Circuit Court seeking damages against the Commonwealth for losses sustained due to the Commonwealth's alleged breaches. On December 9, 2014, the Franklin Circuit Court denied the Commonwealth's motion for partial summary judgment on Kentucky Spirit's damages claims. Discovery is proceeding on those claims.
Loss Contingency, Inestimable Loss The resolution of the Kentucky litigation matters may result in a range of possible outcomes.  If Kentucky Spirit prevails on its claims, it would be entitled to damages.  If the Commonwealth prevails, a liability to the Commonwealth could be recorded.  The Company is unable to estimate the ultimate outcome resulting from the Kentucky litigation.  As a result, the Company has not recorded any receivable or any liability for potential damages under the contract as of December 31, 2014.  While uncertain, the ultimate resolution of the pending litigation could have a material effect on the financial position, cash flow or results of operations of the Company in the period it is resolved or becomes known.
Commonwealth of Kentucky Alleged Increased Program Costs - Low End of Range 28cnc_CommonwealthofKentuckyAllegedIncreasedProgramCostsLowEndofRange
Commonwealth of Kentucky Alleged Increased Program Costs - High End of Range 40cnc_CommonwealthofKentuckyAllegedIncreasedProgramCostsHighEndofRange
Commonwealth of Kentucky Alleged Associated CMS Expenditures - Low End of Range $ 92cnc_CommonwealthofKentuckyAllegedAssociatedCMSExpendituresLowEndofRange