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): February 27, 2007
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SIERRA
HEALTH SERVICES, INC.
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____________________________________________
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(Exact
name of registrant as specified in its charter)
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Nevada
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1-8865
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88-0200415
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(State
or Other Jurisdiction
of
Incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
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2724
North Tenaya Way
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Las
Vegas, Nevada 89128
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(Address
of principal executive offices including zip code)
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(702)
242-7000
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(Registrant's
telephone number, including area code)
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Not
Applicable
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(Former
name or former address, if changed since last report)
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____________________________________________________
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Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any
of the following provisions (see General Instruction A.2.
below):
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[
]
Written communications pursuant to Rule 425 under the Securities
Act (17
CFR 230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR
240.13e-4(c))
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Item 7.01 Regulation FD
Disclosure
On
February 27, 2007, Sierra Health Services, Inc. (Sierra) issued a press release
announcing that it expects to incur a loss in its 2007 fiscal year from the
enhanced version of its Medicare Part D Prescription Drug Program product
offering. Based on its claims experience for the month of January, Sierra
expects pharmacy costs on this product to be higher than previously projected;
however, given the limited data Sierra has; it is unable to reasonably estimate
the amount of premium deficiency at this time. In accordance with
Statement of Financial Accounting Standards No. 5, “Accounting for
Contingencies”, no liability has been recorded at December 31, 2006 as the
liability is probable but not estimable at this time. After completing
discussions with the Centers for Medicare and Medicaid Services and analyzing
data, including additional claims history, Sierra expects to develop a best
estimate of the losses associated with the enhanced product and record a
premium
deficiency reserve for the entire 2007 period. Sierra expects to develop
this
estimate within the next 45 to 60 days. A copy of the press release is
furnished as Exhibit 99.1 to this Current Report. This exhibit shall not
be deemed to be “filed” for purposes of Section 18 of the Securities and
Exchange Act of 1934, as amended, and shall not be incorporated by reference
in
any filing under the Securities Act of 1933, as amended.
Statements
in the press release referred to above that are not historical facts are
forward-looking and based on management’s projections, assumptions and
estimates; actual results may vary materially. Forward-looking statements
are subject to certain risks and uncertainties, which include but are not
limited to: 1) potential adverse changes in government regulations, contracts
and programs, including the Medicare Advantage program, the Medicare
Prescription Drug Plan and any potential reconciliation issues, Medicaid
and
legislative proposals to eliminate or reduce ERISA pre-emption of state laws
that would increase potential managed care litigation exposure; 2) competitive
forces that may affect pricing, enrollment, renewals and benefit levels;
3)
unpredictable medical costs, malpractice exposure, reinsurance costs, changes
in
provider contracts and inflation; 4) impact of economic conditions; 5) changes
in healthcare reserves; 6) the effects of the termination of the HCA contract;
7) variations from actuarial assumptions that can lead to higher than expected
medical costs; 8) costs and losses from our enhanced Medicare Part D
Prescription Drug Program product offering that we cannot yet project; and
9)
the amount of actual proceeds to be realized from the note receivable related
to
the sale of the workers’ compensation insurance operation. Further factors
concerning financial risks and results are contained in our Annual Report
on
Form 10-K for the year ended December 31, 2006. Such statements are made
pursuant to the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995 and identify important risk factors that could cause our
actual results to differ materially from those expressed in any projected,
estimated or forward-looking statements relating to Sierra.
Consequently, all of the
forward-looking statements made in the press release referred to above
are
qualified by these cautionary statements, and there can be no assurance
that the
actual results or developments anticipated by Sierra will be realized or,
even
if substantially realized, that they will have the expected consequences
to, or
effects on, Sierra or its business or operations. Sierra assumes no
obligation to update publicly any such forward-looking statements, whether
as a
result of new information, future events or otherwise.
Item
9.01. Financial Statements and Exhibits
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Exhibits
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Description
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99.1
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Press
Release, dated as of February 27,
2007
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SIGNATURES
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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
hereunto duly authorized.
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SIERRA
HEALTH SERVICES, INC.
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(Registrant)
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Date:
February 27, 2007
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/S/
MARC R. BRIGGS
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Marc
R. Briggs
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Vice
President Finance
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Chief
Accounting Officer
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