Medicare Advantage specialist HealthSpring has been picked by the Illinois Department of Healthcare and Family Services to manage a program that will treat dual-eligible seniors in six Chicago-area counties. HealthSpring's contract under the Illinois Medicare-Medicaid Alignment Initiative is for three years and will coordinate care between physicians, pharmacists and behavioral and long-term care providers.
The Country Music Association last week rolled out an upgraded health care program for its members and their families. The new CMA Instrumental Healthcare is a partnership between the industry group, Cigna, Pancoast Benefits and Vanderbilt University Medical Center. Enrollees will have access to a free prescription drug discount program at over 58,000 pharmacies nationwide as well as supplemental policies such as accidental, disability, dental and vision. They also will receive a 25 percent discount on their patient balance at VUMC up to a maximum of $2,000 per claim.
“Affordable and available health insurance is one of the most valued benefits for members of CMA,” said CMA CEO Steve Moore. “We strive to provide insurance options that meet our constituents’ needs and offer a whole new level of security — especially for members who are self-employed or otherwise not in a position to obtain coverage that fits their health requirements and budget. We feel confident that CMA Instrumental Healthcare accomplishes this important and necessary goal.”
The Medicare/Medicaid insurance sector continues to consolidate. It started with Cigna buying local Medicare power HealthSpring for almost $4 billion. Then WellPoint said it would acquire Amerigroup for $5 billion. Now Aetna has announced it will snap up Coventry Health Care for more than $7 billion, a move it says will add 5.5 million people to its rolls.
After Cigna approached HealthSpring's board of directors this summer about an acquisition, four other potential buyers came out of the woodwork. In a preliminary merger-related proxy statement, HealthSpring details the sometimes-tortuous process, which came to a head on Oct. 22, when Cigna twice raised the price it was willing to pay. The board also had to consider an offer from another party that was a bit higher.
The board determined that, based on the current terms of the most recent proposals, Cigna’s proposal was more favorable to HealthSpring’s stockholders than Company X’s proposal, because the greater certainty of consummation that Cigna’s proposal provided, as well as the view that Cigna’s proposed transaction could potentially be consummated more quickly than a transaction with Company X, outweighed the lower price and the required vote restriction in Cigna’s proposal.