Cigna Not Acquiring Humana
Cigna confirmed it is not pursuing an acquisition of Humana, squashing long-standing rumors. It will make a more official statement soon. Cigna CEO David Cordani is known not to like the Medicare Advantage (MA) insurance line and is selling its underperforming MA lives to Health Care Service Corporation (HCSC). Humana currently struggles financially. Cigna is focused on growing its Evernorth service unit. It is using its free cash and the future MA sales proceeds on stock buybacks. So far it has bought back $6 billion in stock.
Additional articles: https://www.modernhealthcare.com/insurance/cigna-humana-merger-ends-share-buybacks-medicare and https://www.healthcaredive.com/news/cigna-confirms-humana-deal-off/732488/ and https://www.beckerspayer.com/m-and-a/cigna-not-pursuing-humana-merger.html
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#cigna #medicareadvantage #humana
Kaiser Permanente Books Loss in Q3
Kaiser Permanente posted a $608 million operating loss in Q3. It is struggling with higher medical expenses due to higher-than-expected utilization, acuity, pharmacy costs and inflation. It has enacted a cost-cutting program.
Showing the extent of CVS Health’s issues, Aetna is trying to increase 2025 group health rates enough to cope with the possibility that claims will outpace premiums. Aetna readily admits that it could see its large group line shrink.
Major health plans are showing mixed performance this past quarter and for the year.
Additional articles: https://www.modernhealthcare.com/finance/kaiser-permanente-operations-administrative-costs and https://www-benefitspro-com.cdn.ampproject.org/c/s/www.benefitspro.com/2024/11/07/cvs-plans-to-let-aetna-fully-insured-group-enrollment-shrink/?amp=1 and https://www.fiercehealthcare.com/payers/major-payers-saw-mixed-results-q3-heres-look-how-each-fared
(Some articles may require a subscription.)
#kaiserpermanente #healthplans #margins
Article Outlines Impacts Of IRA On Part D Premiums And Benefits
Great article summarizing the impacts of the Inflation Reduction Act’s (IRAs) Medicare Part D changes on premiums, costs, and choice for 2025 standalone Part D plans. I have been discussing this issue for months and arguing the fallout is huge. It is being tempered right now by an extra-legal premium stabilization program by the Centers for Medicare and Medicaid Services (CMS). The entire program could be in jeopardy in three years when the program goes away. It is a lesson about the unintended consequences of something that looks too good to be true.
#partd #pdp #medicareadvatage #ira
https://www.dailysignal.com/2024/10/14/biden-harris-admins-medicare-shock-for-seniors/
CDC Says Uninsured Rate Is Stable
A Centers for Disease Control and Prevention (CDC) report released Friday shows 7.6% of Americans, or 25.3 million people, lacked health insurance from April to June 2024. This is roughly consistent with the prior year. It is hard to understand exactly how this is so given the huge drop in Medicaid enrollment since redeterminations began anew post COVID. While Exchange enrollment climbed and employer coverage went up, it would not appear to offset the major reduction in Medicaid.
(Article may require a subscription.)
#uninsured #coverage #healthcare #medicaid #exchanges
https://www.modernhealthcare.com/insurance/us-uninsured-rates-cdc
MA Advocacy Groups Ramping Up Capitol Hill Lobbying
Just as AHIP, the insurance lobby, is investing in a big money campaign to defend Medicare Advantage (MA), the Better Medicare Alliance (BMA) is ramping up efforts to persuade lawmakers to increase funding for the program. It is using its recent study conducted by Avalere, which found that there will be around 7% fewer MA plans offered in 2025 than in 2024, and fewer plans will offer some types of supplemental benefits.
Trump could be friendlier to MA and some say he could roll back recent cuts and grant increases to the program. At the same time, he is battling to find dollars to pay for tax cuts set to expire at the end of 2025.
Additional articles: https://www.politico.com/newsletters/politico-pulse/2024/11/11/medicare-advantage-insurers-appeal-to-the-hill-00188660 and https://bettermedicarealliance.org/news/new-analysis-shows-impact-of-recent-policymaking-on-medicare-advantage-plans-fewer-choices-higher-costs-and-reduced-benefits-for-seniors-in-2025/ and https://www.bloomberg.com/news/articles/2024-11-06/medicare-focused-health-insurers-soar-on-trump-election-victory?srnd=homepage-europe .
#medicareadvantage #bma #ahip #trump #rates
https://www.beckerspayer.com/payer/medicare-advantage-plans-ramp-up-lobbying-efforts.html
— Marc S. Ryan
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