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May 15, 2008
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MHMR May 15, 2008: Volume 16, Number 9
Medco reports 2% drug trend…Do DM programs save money?...Medical cost trend slows…Chart: Medco drug cost trend…Chart: Medco generic use rate…CA plans settle on rescissions…Best downgrades Health Net…Medicare Advantage lives rise…WellCare investigation price tag…Aetna hires Ghose…Centene wins AZ contract…MCO stocks fall 2.3%...Services stocks rise 1%...and more…
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MEDCO REPORTS ‘07 DRUG TREND OF 2%
Medco Health Solutions (Franklin Lakes, NJ) reported that the average cost of prescription drug benefits among its clients rose just 2% in 2007, the lowest rate of increase in the company’s history.
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WELLNESS, DM SAVINGS INCONCLUSIVE, MILLIMAN SAYS
“The adoption of population health-management approaches, particularly wellness and health promotion programs, has become mainstream, yet medical cost savings outcomes have been inconclusive,” according to the 2008 Milliman Medical Index from Milliman Inc. (Seattle, WA).
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’08 MEDICAL COSTS UP 7.6%, MILLIMAN SAYS
Benefits consultant Milliman Inc. (Seattle) projected that spending on employee healthcare benefits will rise 7.6% in 2008 to an average of $15,609 for a family of four.
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KAISER, HEALTH NET TO REINSTATE RESCINDED MEMBERS
As part of a settlement with California regulators, Kaiser Permanente (Oakland, CA) and Health Net (Woodland Hills, CA) have agreed to pays fines of $300,000 each and to offer healthcare coverage to past members whose policies were rescinded by the plans over the past four years.
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MEDICARE ADVANTAGE LIVES ARE UP 10%
Medicare Advantage lives are up 10% for the year through May 1 to 9.936 million lives, compared to 9.008 million lives as of year-end 2007. CMS reported increases in traditional Medicare Advantage plans, up 11% to 7.036 million; private fee-for-service, up 32% to 2.24 million; and regional PPOs, up 18% to 278,492
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WELLCARE PUTS PROBE-RELATED COSTS AT $32 MILLION
WellCare Health Plans Inc. (Tampa, FL) said that it spent $32 million in the first quarter of 2008 on administrative expenses associated with a federal and state investigation into the company’s activities (MHMR, Nov. 30, 2007).
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AETNA NAMES GHOSE VP, PUBLIC AFFAIRS
Aetna Inc. (Hartford, CT) has named Mohit Ghose vice president of public affairs. Ghose, who was most recently with America’s Health Insurance Plans (Washington), will be based in Aetna’s Hartford, CT, headquarters and report to senior vice president of strategic marketing and communications Robert Mead.
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CENTENE WINS AZ ACUTE CARE CONTRACT
Centene Corp. (St. Louis) said it has won a three-year contract to provide acute care services to Medicaid recipients in Yavapai County, AZ. Services will be provided through Centene’s Bridgeway Health Solutions unit. Centene already provides long-term care services in Maricopa, Yuma and La Paz counties, and behavioral services in Yuma, La Paz, Pinal and Gila.
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