2 Large New England Health Plans Announce Merger
Massachusetts-based Tufts Health Plan and Harvard Pilgrim Health Care say that a merger would help make insurance more affordable. The proposal must win approval from regulators.
Boston Globe:
Tufts Health Plan, Harvard Pilgrim Health Care Are Combining
Tufts Health Plan and Harvard Pilgrim Health Care shook up the state’s medical industry Wednesday, saying that they plan to merge to create an insurer serving 2.4 million people across New England. The deal could give the companies more leverage with powerful hospital systems, and allow them to more aggressively take on Blue Cross Blue Shield of Massachusetts, the state’s largest health insurer. Consumer advocates worried that the combined company could raise costs. (Dayal McCluskey, 8/14)
WBUR:
Insurers Harvard Pilgrim And Tufts Health Plan Say They'll Merge
Blue Cross has 40.6% of the insurance market in Massachusetts, as compared with 12.6% for Tufts and 12.4% for Harvard Pilgrim. Data from the Center for Health Information and Analysis also shows Harvard Pilgrim enrollment dropping steadily for the past four years. The merged insurer would still be smaller than Blue Cross, which has 2.8 million members. (Bebinger, 8/14)
NH Union Leader:
Harvard Pilgrim And Tufts Health Plan Announce Plans To Merge
Both companies are based in Massachusetts, but Harvard Pilgrim has an office in Manchester and there is a Tufts office in Concord. The merger plan must still be approved by state and federal regulators, including the New Hampshire Insurance Department, which opposed a 2017 proposal to merge health insurance companies Anthem and Cigna. (Albertson-Grove, 8/14)
Modern Healthcare:
Mass. Health Insurers Tufts, Harvard Pilgrim To Merge
In a joint statement, the health insurers said their merger will improve the affordability of coverage through scale and administrative cost efficiencies while improving quality through investments in population health. They also said that together, they would better enable care for underserved communities and offer a broader set of insurance options for all customers. (Livingston, 8/14)
In other insurance industry news -
Modern Healthcare:
GAO: Medicare Part D Plans Collect Nearly All Drug Rebates
Medicare Part D health plans raked in nearly all of the drug rebates from manufacturers in 2016, leaving premiums relatively flat for price-conscious seniors with prescription drug plans, according to a government watchdog study on Wednesday. The Government Accountability Office found that in 2016 rebates and other price concessions from manufacturers accounted for roughly $29 billion, or 20% of all Part D spending, and insurers receive 99.6% of those rebates. Nearly all of those savings go to plan sponsors, shining a light on why insurers are so desperate to preserve them as Congress looks to reform the program. (Luthi, 8/14)
Star Tribune:
UCare Is Second Insurer In Minnesota To Unveil $25 Cap For Insulin
The UCare health plan has become the second Minnesota insurer to add a new benefit for members with diabetes — a $25 monthly spending cap on out-of-pocket spending on insulin. "As the health plan with the largest enrollment through MNsure, we felt a special responsibility to be part of a solution to this important public health issue," UCare CEO Mark Traynor said in a news release. MNsure is the public website where individuals and families can shop for insurance if they don't get it through an employer. (Carlson, 8/14)
The Hill:
Illinois Passes Law Requiring Insurance Companies To Cover EpiPen Injections For Children In Historic First
Illinois Gov. J.B. Pritzker (D) has signed off on legislation making his state the first in the nation to require insurance companies to provide coverage for children who require life-saving EpiPen injections. “I was proud to sign two new laws expanding insurance coverage for children whose allergies require live-saving EpiPens and Illinoisans suffering from Lyme disease,” the Illinois Democrat tweeted Tuesday. (Folley, 8/14)
