Aetna Poised to Purchase Humana

Posted by:

Aetna announced plans on Friday to make the largest acquisition ever in the history of the insurance industry. Aetna, the third largest health insurer by revenue, intends to acquire the nation’s fourth largest health insurance company, Humana, for more than $37 billion in stock, cash, and debt. A combined Aetna-Humana would bypass Anthem to become the second largest insurer by revenue and total membership. The deal would also establish Aetna as the largest provider ...

Continue Reading →
0

Aurora Reports Higher Profits, New Projects

Posted by:

Milwaukee’s Aurora Health Care saw its operating income and profits rise in 2014, beating expectations. This is largely due to the Affordable Care Act’s public exchanges and Wisconsin Governor Scott Walker’s Medicaid expansion plan. In addition, the non-profit health system recently announced plans to make significant investments in a number of health facilities throughout Wisconsin.

As Aurora CFO Gail Hanson told the Milwaukee Business Journal’s Rich Kirchen, the gains in operating income were primarily driven by its strategic approach ...

Continue Reading →
0

Churning May Still Be A Problem Among the Newly Insured

Posted by:

Losing or dropping health insurance coverage for unforeseen reasons is known as “churning.”  Churning affects the continuity of care between the doctor and patient, may lead to costly emergency room visits instead of less expensive primary care visits, and is an administrative nightmare for insurers.

The Affordable Care Act added another wrinkle.  Receipt of subsidies on the federal exchange is dependent on household income and family size.  Family circumstances such as a birth, divorce, or relocation could affect subsidy eligibility.  Coverage ...

Continue Reading →
0

Cost Shifting to Medicaid

Posted by:

The Affordable Care Act requires health insurers to pay a tax to help funded the implementation of the law.  Over the past four years, this tax totaled $150 billion.  The tax is based on an insurers market share and expected to raise premiums up to 2.5% for individuals who purchase individual insurance.  Now, health insurers are attempting to recoup that expense by cost shifting within its Medicaid contracts with state and federal governments.  Some estimates suggest this cost shifting may ...

Continue Reading →
0