The Terminate Of Medicare Soul Fee-For-Service--The Questions To Inquire The Wellness Plans During Net Season

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Title : The Terminate Of Medicare Soul Fee-For-Service--The Questions To Inquire The Wellness Plans During Net Season
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The Terminate Of Medicare Soul Fee-For-Service--The Questions To Inquire The Wellness Plans During Net Season

Now that nosotros know private fee-for-service (PFFS) is dead on Jan 1, 2011 inward all but the most rural markets, how volition the health plans who accept pregnant PFFS business respond?

UnitedHealth is the offset health conception to study earnings this quarter in addition to I idea they had the correct answer. From their earnings telephone proper name upwards transcript (Ovations CEO commenting):
We accept had a strategy of deliberately positioning ourselves inward favor of network based Medicare Advantage rather than private fee-for-service over the years, because nosotros call upwards nosotros tin privy unleash to a greater extent than value from Medicare that means in addition to because of what nosotros perceive to travel a ho-hum ambit the axe risk, if non a gamble that is at nowadays crystallized, inward the novel law.

So the at i time impact on us is minimal, because entirely some 7% of our Medicare Advantage membership is inward mortal fee-for-service in addition to all those 100,000 or thence members 3/4 alive inward areas either unaffected past times the police pull or where nosotros already accept network based alternatives. [The increment opportunities are bang-up for us] because plainly the terminate of deeming volition hateful that peradventure 80% of the mortal fee-for-service marketplace volition at nowadays over the adjacent 2 years accept to migrate to a network -based product in addition to that’s something that we’ve been critically positioning ourselves for.

Potentially 1.7 meg mortal fee-for-service members are going to travel triggered into shopping in addition to every bit the largest operator of network based Medicare Advantage...we promise to travel able to capitalize on that opportunity.

It is likewise notable that UnitedHealth sees the entire Medicare Advantage computer programme every bit a "slow ambit the axe risk." Presumably, they hateful that it is clear to them that the days of higher Medicare Advantage payments are express in addition to the entirely defence is existence able to cope the computer programme to a greater extent than efficiently than government-run Medicare.

Analysts worried near the impact of the novel Medicare police pull on PFFS players demand to travel quest for specific information:
  1. How much of your PFFS employment concern is inward rural markets that was non eliminated past times the novel law?
  2. Of your PFFS business, how much of it is inward marketplace concentrations that enable you lot to prepare a Medicare network--likely at to the lowest degree 10,000 members inward an SMSA--or where you lot already accept a Medicare network?
  3. What produce you lot intend to produce amongst your PFFS employment concern where you lot cannot create a network?
  4. How produce these changes impact your pro forma going forward?
  5. When Congress finishes the project of equalizing populace in addition to mortal Medicare payments how tin privy you lot travel certain your employment concern model volition travel viable?
  6. How much lower are your Medicare costs today, including overhead, than the populace Medicare program?
Some of the offset comments past times some PFFS players exuding a confidence at that spot is a conception inward house only don't cutting it. Either they volition accept plenty members inward a marketplace to build a network, thence travel able to build a network (capital in addition to expertise), or they volition accept to essay out to sell off the members to someone who can.

In xxx months near all of the PFFS income stream goes away without some pretty pregnant uppercase in addition to labor intensive efforts.

As the UnitedHealth management said, 1.7 meg members are on the block.

The days of people arbitraging the Medicare payment system are at nowadays clearly numbered.

Analysts demand to enquire some tough questions near the strategy going forward.


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