Company That Wants To Sell Medicare Advantage Plans Raises Additional $300M In Venture Capital Funding
The company, Devoted Health, was founded last year by Todd Park, a former chief technology officer for the Obama administration, and Ed Park, a former Athenahealth executive. In other health industry news: the ripple effects of Anthem's privacy breach settlement; UnitedHealth earnings projections; and Catholic Health Initiatives' merger with Dignity Health
Bloomberg:
Obama Officials, Athenahealth Execs Launch Medicare Plan
A group of former Obama White House officials and executives from health-technology company Athenahealth Inc. will begin selling private health insurance to U.S. senior citizens, backed by $360 million in venture capital funding. The company, called Devoted Health, will sell Medicare Advantage plans in Florida and wants to expand its offerings nationally. The insurance plans are a private-sector alternative to traditional Medicare, subsidized by the government. (Dodge, 10/16)
Boston Globe:
This Company, Led By Veteran Athenahealth Execs, Just Raised $300M
The company has begun offering coverage in Florida through the federally supported Medicare Advantage program, Medicare’s private insurance option. Medicare Advantage plans typically cover a broader array of services than general Medicare coverage, usually in exchange for a narrower provider network. The government pays a fixed amount per patient to companies that offer Medicare Advantage plans, which make money if they can keep costs down and patient outcomes up. “We are completely and wholly incentivized to focus on your long-term care,” said DJ Patil, Devoted’s head of technology and a former White House data scientist under the Obama administration. (Rosen, 10/16)
Modern Healthcare:
Anthem's $16M Breach Settlement Reminds Others To Assess Their Cyber Risks
Anthem's record-breaking data breach settlement on Monday has put providers and insurers on notice that ignoring cybersecurity risks could come with a hefty pricetag. The nation's second-largest insurer will pay HHS' Office for Civil Rights $16 million over a 2015 data breach that affected almost 79 million people, the largest data breach ever reported to the agency. Other healthcare organizations face similar threats, especially if they have large sets of data that can entice hackers, according to cybersecurity experts. (Arndt and Livinsgton, 10/16)
The Wall Street Journal:
UnitedHealth Raises Full-Year Earnings Projection
UnitedHealth Group Inc. raised its full-year earnings projection for 2018 and offered reassurance about its early outlook for next year, as the company pointed to growth drivers including the continuing expansion of private Medicare plans. UnitedHealth said Tuesday it expects to earn $12.80 a share on an adjusted basis this year, compared with the range of $12.50 to $12.75 a share it previously suggested. (Wilde Mathews and Chin, 10/16)
The Star Tribune:
UnitedHealth Group Predicts Medicare Growth
With quarterly profits again soaring beyond expectations, UnitedHealth Group executives on Tuesday predicted more growth in the market for Medicare health plans, which includes new offerings in Minnesota. The Minnetonka-based company's UnitedHealthcare division is the nation's largest health insurer and largest seller of Medicare Advantage plans, which a growing number of beneficiaries purchase as a way to obtain government health benefits through a private insurer. (Snowbeck, 10/16)
Modern Healthcare:
CHI-Dignity Merger Cleared By Vatican
The Vatican has given the ecclesiastical green light to the proposed merger between Catholic Health Initiatives and Dignity Health, a deal that would create the nation's largest not-for-profit hospital company by revenue. In a Sept. 4, 2018 letter, the Vatican's Congregation for the Doctrine of Faith said it had reviewed the agreement between the two not-for-profit hospital systems and would allow the bishops in the local dioceses where the newly formed entities will exist to decide the matter. (Meyer and Bannow, 10/16)
