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Managed Healthcare Market Report

January 15, 2010

MHMN Jan. 15, 2010; Volume 18, Number 1
Healthcare reform in the balance…MCO profits to rise 20%....Managed behavioral lives fall…Aetna, Cigna, MHN, Magellan, Optum, ValueOptions, WellPoint…Chart: Behavioral lives…Chart: Commercial members…Chart: Fully funded enrollment…Analysts see improved 2010…’10 premiums to rise 9.6%...Chart: Premium hikes by plan…Healthcare reform isn’t dead…and more…

HEALTHCARE REFORM IN THE BALANCE
The future of healthcare reform is in serious doubt following the stunning special election of Republican Scott Brown as U.S. Senator from Massachusetts to fill the late Ted Kennedy’s seat.

MCO PROFITS TO RISE 20% IN 2010, CRG SAYS
Managed care industry profits are expected to rise 20% in 2010 on the strength of hefty premium rate increases and cost cutting among leading health plans, according to The Outlook for Managed Care, 2010 from Corporate Research Group.

‘09 MANAGED BEHAVIORAL LIVES FALL 1%
Enrollment at leading managed behavioral plans declined 1% in 2009, due primarily to high unemployment.

FROM THE CRG BLOG: HEALTHCARE REFORM ISN’T DEAD
Healthcare reform isn’t dead, despite last night’s stunning special election of Republican Scott Brown as the junior U.S. Senator from Massachusetts to fill the late Ted Kennedy’s seat.

ANALYSTS SEE IMPROVED 2010 FOR MANAGED CARE
Given hefty rate increases, health plans should enjoy improved profits in 2010. That’s the conclusion of our annual Outlook for Managed Care report (see story, this issue). It’s also generally the conclusion of Wall Street analysts.

’10 PREMIUMS TO RISE 9.6%, DEUTSCHE BANK SAYS
Deutsche Bank’s Health Insurance Market Survey projects 2010 premium rate increases among top health plans ranging from 7.2% for fully insured business at Kaiser to 17.4% for fully insured business at Aetna.


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