June 22, 2015. Authored by Robert Bache aka “MedicareBob”.
On May 27th 2013 I published a video, “Obamacare. Is it going to Destroy Medicare Advantage Plans?” In this video, (you can watch below) I shared that I was confident that Medicare Advantage Plans would continued to be offered but I anticipated that health insurance companies offering Medicare Advantage Plans would merge or acquire each other.
Since 2013, we have seen some of the larger Insurers purchase some of the smaller Insurers. Well the bar just got raised. We have four juggernauts within the Health Insurance industry discussing mergers with each other!
Anthem has recently raised its offer to purchase Cigna. Anthem has aggressively been perusing the purchase of Cigna since August of 2014. According to reports, the main reason that this deal has not been completed is that Anthem’s CEO, Joseph Swedish is insisting he stays on as CEO during and after the merger. Basically diminishing current Cigna’s CEO, Daid Cordani’s role.
Anthem has made their offer public hoping that Cinga Shareholder’s are enticed and put pressure on Mr. Cordani to approve the acquisition.
Another major Insurer, Humana has reportedly had private talks with Aetna, Anthem and United Healthcare about their desire to be acquired. Humana, based in Louisville, KY., is a big player within the Medicare Advantage sector and is considered a key acquisition to the larger Insurers that are looking to capitalize on the growing amount of baby boomers enter the market.
What does this mean to you, the person on Medicare:
As I mentioned in the video, Medicare Advantage Plans will continued being offered. You may have fewer choices but I am hoping that the Insurers will use their leverage to negotiate strong benefits within their Medicare Advantage plan offerings and larger HMO / PPO Networks. Do not panic, remember if your Medicare Advantage Plan is discontinued, Medicare provides you with a “Special Election Period” to choose a different Medicare Advantage Plan. I also believe that any merger or acquisition of this size would take a couple of years to implement, so we should have plenty of time to see how this plays out.
If you have any questions about your Medicare Plan, please call my office: Senior Healthcare Direct – 1-855-368-4717. All of our agents are licensed and appointed with all of the top Medicare Insurance Carriers. All our our agents are also “AHIP Certified”, giving them the knowledge to assist you with both Medicare Supplement / Part D Plans, and Medicare Advantage Plans.