- Centene, the largest Medicaid Managed Care Organization in the country, and Ascension, the nation’s largest Catholic and nonprofit health system, have signed a letter of intent for a joint Medicare Advantage plan starting in 2020.
- Anthony Tersigni, CEO of Ascension, said the partnership with Centene will create an MA plan that “aligns with our mission of serving those who are vulnerable and struggling the most, which all too often includes our seniors.”
Centene, the largest Medicaid Managed Care Organization in the country, and Ascension, the nation’s largest Catholic and nonprofit health system, have signed a letter of intent for a joint Medicare Advantage plan starting in 2020.
There are few specifics about the plan, but the companies said it would be a preferred model for the systems and affiliates in multiple markets.
The joint venture still needs negotiation of definitive terms and approval of each company’s board of directors.
Payers have increasingly turned to MA plans. Insurers see the MA market as stable, with a steady stream of new potential members turning 65 every day who previously had insurance through their employer and don’t have pent-up healthcare needs.
MA plans are becoming a more popular choice for consumers, and about one-third of Medicare enrollees are now on an MA plan.
Anthony Tersigni, CEO of Ascension, said the partnership with Centene will create an MA plan that “aligns with our mission of serving those who are vulnerable and struggling the most, which all too often includes our seniors.”
Michael Neidorff, CEO of Centene, said the joint venture allows for “scaled payer-provider collaboration.” During Centene’s earnings call last week, Neidorff said MA will be a “significant driver of growth” in coming years.
Medicaid managed care still makes up a more than half of Centene’s business (7.18 million Medicaid members), but the company has moved more into MA and the Affordable Care Act exchanges over the past year.
Centene’s recent purchase of New York-based Fidelis Care for $3.75 billion is expanding the company’s Medicaid, Medicare and ACA plan numbers. Neidorff said Fidelis is the fastest growing Medicaid managed care company in New York and the second fastest growing MA payer.
Centene’s partnership with Ascension isn’t the first MA collaboration involving a payer and healthcare system. Cleveland Clinic is also working with payers such as Anthem and Humana on MA plans.
Meanwhile, the two major players in the MA market, UnitedHealthcare and Humana, are also growing their footprints. UnitedHealth said last week that its Medicare plans grew by 450,000 members or 10.4% year-over-year. During the first-quarter call, Brian Thompson, CEO of UnitedHealthcare’s Medicare & Retirement, said the company expects a long-term MA growth rate of about 8%.
Humana recently partially purchased Kindred at Home, which will help the company with end-of-life care costs in the MA population.
Anthem is also expanding its MA footprint. During the company’s earnings call last week, Gail Boudreaux, Anthem’s CEO, said the payer expects to grow its county MA footprint and expand organically where it already operates.
Date: August 2, 2018
Source: HealthcareDive