While anxiety and concern are normally the first reactions to newly-launched government programs in healthcare, the results have almost always been prosperous for private enterprise operating in the space. This phenomenon goes all the way back to the inception of the Medicare trust fund, to the standardization of Medicare supplements, to the MMA, and now Health Reform known as the Patient Protection and Affordable Care Act. Contrary to initial reactions, history shows us that these laws have created enormous opportunities for businesses who are prepared.
Given the number of significant acquisitions recently made by health insurers, it’s becoming apparent that many are fortifying their positions once again:
- Aetna just purchased Coventry for $5.7 billion in cash and stock. They said their interested in expanding their government-sponsored programs.
- WellPoint bought Amerigroup to expand its Medicaid business.
- Cigna bought Health Spring last year to build up its Medicare business.
- Humana purchased Arcadian and MD Care to further its scope and national footprint in the Medicare Advantage space.
So if you currently market Medicare Health Plans, congratulations, opportunities abound. If you continue to focus on Medicare Supplements exclusively, consider what adding a strong Medicare Advantage carrier to your portfolio might do for your clients.