Managed Care

 

Humana-Cigna Or Cigna-Humana?

MANAGED CARE May 2010. © MediMedia USA
News and Commentary

Humana-Cigna Or Cigna-Humana?

MANAGED CARE May 2010. ©MediMedia USA

This is just one of the many questions that surely need to be addressed when you form the sort of partnership that the two large insurers announced in April. They hope to combine resources to capture the business of employers that offer health benefits to their retirees.

Humana brings to the deal dozens of Medicare Advantage plans that it offers throughout the nation. Cigna brings its huge customer base and presence in every state along with a client list that includes some of the country’s largest employers.

The partnership is even more unusual than one involving UnitedHealthcare and Towers Watson, described in MANAGED CARE last month. There, the deal was forged between an insurer and a consulting company in an effort to turn retiree benefits from a defined benefit into a defined contribution.

Les Funtleyder, an analyst at the consulting company Miller Tabak, tells the Associated Press that the Cigna-Humana partnership makes sense because the product lines of the two insurers don’t really overlap.

Sam Srivastava, Cigna’s president of government segments, says that “Through this alliance, we can expand Cigna’s portfolio, while Humana is able to expand its distribution to a larger base of employer customers for its Medicare Advantage plans.”

The partnership may be a harbinger, as health plans grapple with life after health reform, says Funtleyder. Maybe, but in both the Cigna-Humana deal and the UnitedHealthcare-Towers Watson partnership, the parties were talking before health reform became law.

“Had health reform not been passed, this would still make sense for both firms,” Humana spokesman Tom Noland tells the AP.

Meetings

2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014
6th Semi-Annual Diagnostic Coverage and Reimbursement Conference Boston December 4–5, 2014
Customer Analytics & Engagement in Health Insurance Chicago December 4–5, 2014
Pharmaceutical and Biotech Clinical Quality Assurance Conference Alexandria, VA December 4–5, 2014
9th Semi-Annual Medical Device Coverage and Reimbursement Conference San Diego December 5, 2014
8th Annual Medical Device Clinical Trials Conference Chicago December 8–9, 2014
HealthIMPACT Southeast Tampa, FL January 23, 2015