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Managed Care

Managed Healthcare Market Report

Managed Care Companies

MANAGED CARE STOCKS RISE 1.7%
Managed care stocks rose 1.7% in the two weeks ended April 11, according to an MHMR tally of 13 issues.

CIGNA NAMES PRESIDENT OF DISABILITY MANAGEMENT UNIT
Cigna Corp. (Philadelphia) said it has named T. Mark Farrell president of its Intracorp disability case management company. He was most recently with Commerce Insurance Services.

‘07 BCBS LIVES DECLINE 2.5% TO 25 MILLION
Fully funded HMO and POS lives among 19 leading Blue Cross Blue Shield companies declined 2.5% to 25.02 million as of Dec. 31, 2007.

WELLPOINT WINS TRUSTMARK PBM RENEWAL
WellPoint Inc. (Indianapolis) announced that it has won a four-year contract renewal to provide pharmacy benefit management services to the health plan members of Trustmark Mutual Holding Co. (Lake Forest, IL). WellPoint has served as Trustmark’s PBM since 2006.

MCO MEMBERSHIP RISES 3.3% TO 126.8 MILLION IN 2007
Fully funded and self-funded enrollment combined increased 3.3% to 126.781 million at 24 leading managed care organizations in 2007. The figures exclude consumer-directed health plan enrollment. Fully funded lives accounted for 51% of the total, down from 52.2% as of Dec. 31, 2006.

‘07 HMO/POS LIVES DECLINE 0.5% TO 62.5 MILLION
Fully funded HMO and POS enrollment among 22 leading managed care organizations dropped 0.5% to 62.458 million in 2007 compared to 2006.

HUMANA GETS 1-YEAR TRICARE EXTENSION
Humana Inc. (Louisville, KY) said it was awarded a one-year extension to its military health benefits contract with the U.S. Dept. of Defense, serving 2.9 million lives in the 10-state Tricare south region. The DOD exercised an option to extend the contract through March 20, 2009.

COMMERCIAL PPO LIVES FALL 0.4% IN 2007
Fully funded commercial PPO enrollment among 20 leading managed care organizations slipped 0.4% to 43.092 million in 2007 compared to 2006.

HSA SUBSTANTIATION BILL FACES VETO
President Bush would likely veto legislation requiring banks to substantiate whether payments and withdrawals made from HSAs are for healthcare expenses.

AETNA WINS BANK OF AMERICA CONTRACT
Bank of America (Charlotte, NC) announced that it has consolidated all of its health plan business with a single carrier, Aetna Inc. (Hartford, CT).

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