CNC
#Well, I think ---+ we are on record as saying that margin expansion is still a short and longer-term objective of ours.
And the higher acuity populations, as we said, we had the systems and capability and I think that we're ---+ the more of that we have, we can enhance it.
<UNK>, you want to add anything.
Yes, we've always held this long-term pretax margin of between 3% and 5%.
And I think, obviously, there's a lot of opportunity on margin.
We talk about synergies and the run rate synergies and executing on those.
I think we still have room to go as far as systems and the operational systems that <UNK> mentioned before.
Additionally, there's always investment income.
Right now interest rates are relatively low.
So there's a lot of things I think out there for the opportunity to expand margins in the future.
I think our mindset is ---+ our population is 400% of the total poverty level and below.
We're very focused ---+ we're not trying to grow beyond that except in California where we have the large group business and they have had historically the relationships to support that.
But if any of the providers that fit within our traditional provider group want to join, we'll be happy to talk to them.
But we find that the network we have is very adequate for the population we're attracting and serving.
<UNK>, you want to take the population ---+.
Yes, <UNK>, just in terms of the markets where we've had stronger presence on the marketplace in 2017.
So not surprisingly, that matches up with where we have just a stronger presence generally at the local level.
So states like Texas ---+ in addition to the California and Arizona markets, so Texas, Florida, Georgia, those are all markets where we have a meaningful marketplace in 2017.
Yes, and this is <UNK>, I'll answer your second question.
It doesn't change our views because ultimately the minimum MLR ended in June 30 and they were accruing to that level.
And July 1 there was a rate reduction in the Medicaid expansion rates ---+ a sizable rate reduction, really in combination with eliminating the minimum MLR.
So it doesn't change our views on the profitability of that product going forward.
Yes.
Close.
Close, yes, more or less.
Yes, I think we talked about that at our December Investor Day.
So, yes, it was ---+ we mentioned that.
So that was in ---+ I mean nothing has changed since our December Investor Day.
Predominantly.
Last year was a moderate level of flu, so there's a lot of puts and takes.
Obviously, we're managing over 300 products, 29 states, so ---+.
But it's a $46 billion business this year.
<UNK>.
Yes, not sure we'd comment a lot on that just ---+ other than to say that the preliminary view is it's in line with expectations.
Our analysis is pretty consistent with a lot of the reports that we've seen that have come out over the course of the last week.
So there's some variability from state to state, so we're not in a position to get into that just yet.
But I think it's a good starting point is how I would characterize it.
(Multiple speakers).
I've been upper early rehearsing for you, <UNK>.
Can you tell me what Trump said last night.
Yes, we've been talking about the bands or he's hearing us, so ---+ and any of these things he does that improves it, there's going to be a lot of discussion about it, so it's all good.
I'm just comfortable that ---+ we have our proposals in to the decision-makers.
They understand it.
They understand how big we are in this business so it carries some weight.
They are soliciting some of our opinions.
We have a very active Washington office, so any of these things that expand ---+ that correct some of the things that need a corrected will only help us.
Well, I want to thank you all for participating and I will tell you, I look forward to being able to have more of these kinds of calls with the kind of results we delivered this past quarter.
So, off to 2017 we go.
Have a great year, everybody.
