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April 15, 2007
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MHMR April 15, 2007: Volume 15, Number 7
4Q06 HMO lives rise 2.3%...’08 Medicare rates to rise 3.5%...Gellert on Health Net...Chart: HMO enrollment...4Q06 BCBS HMO lives fall...Chart: BCBS HMO enrollment...Centene to buy PhyTrust...1Q07 Medicare PFFS lives soar...Chart: PFFS enrollment...Chart: Medicare risk rates...United renews AARP pact...Aetna lands AARP agreement...HMO stocks rise 4.1%...Services stocks fall 0.3%...and more...
EXCLUSIVE VIDEO INTERVIEW
Jay Gellert, CEO, Health Net
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Outlook for Managed Care, ‘07
All You Need to Know About the Future of Managed Care!
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4Q06 HMO/POS LIVES RISE 2.3% TO 69.9 MM
Fully funded HMO and POS enrollment among 22 leading managed care organizations increased 2.3% to 69.865 million as of Dec. 31, 2006, compared to the same period a year earlier.
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’08 MEDICARE RATES TO RISE 3.5%
The Centers for Medicare & Medicaid Services (Washington, DC) said that reimbursement rates for Medicare Advantage plans will increase 3.5% in 2008.
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HEALTH NET TO REMAIN INDEPENDENT, GELLERT SAYS
Amid persistent speculation that Health Net (Woodland Hills, CA) is a likely acquisition target, chief executive Jay Gellert said the company would remain “independent for the foreseeable future.”
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CENTENE TO ENTER SC, ACQUIRE PHYTRUST
Centene Corp. (St. Louis) said it has agreed to acquire PhyTrust (Myrtle Beach, SC), a Medicaid medical home health network serving 30,000 members, as a springboard into the South Carolina Medicaid market. Centene will acquire PhyTrust to form a new organization to deliver Medicaid services.
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4Q06 PPO ENROLLMENT INCREASES 2.3%
Fully funded PPO enrollment among 17 leading managed care organizations increased 2.3% to 52.914 million as of Dec. 31, 2006, compared to the same period a year earlier.
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1Q07 MEDICARE PFFS LIVES SOAR 61%
Enrollment in private fee-for-service (PFFS) Medicare Advantage plans jumped 61% 1.369 million lives in 2007, compared to 850,242 lives in 2006, according to an MHMR tally of figures from the Centers for Medicare & Medicaid Services.
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UNITEDHEALTH, AARP EXTEND MEDICARE PACT
UnitedHealth Group (Minnetonka, MN) said it has extended for another seven years its arrangement to offer Medicare Advantage, Part D and Supplement plans to members of AARP. The new agreement, which runs through 2014, has been expanded to include health and wellness solutions. UnitedHealth will market the products to 38 million AARP members.
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AETNA TO OFFER PLANS TO AARP MEMBERS UNDER 64
Aetna Inc. (Hartford, CT) has entered into a seven-year agreement to offer individual health plans to AARP members who are 50 to 64 years old. AARP has a total of about 18 million members aged 50 to 64.
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