HealthLeaders-InterStudy, a leading provider of managed care industry intelligence, finds that Humana Inc. and UnitedHealth Group have quietly pulled out of the Illinois managed Medicaid market. According to the latest issue of Illinois Health Plan Analysis from HealthLeaders-InterStudy, severe cuts in Medicaid reimbursement are making it more difficult for any health plan to offer a managed Medicaid product in Illinois.

"Medicaid in Illinois is highly politicized," said Rick Byrne, HealthLeaders-InterStudy analyst. "Though a study recommended expanding managed care in the state's Medicaid program, the legislature instead cut reimbursements. Managed care could show some real cost savings if allowed to operate properly, but I don't see that as a realistic possibility in the near future."

Unlike many states, Illinois does not assist in membership enrollment, leaving the entire cost to the managed care plans. The resulting high marketing costs and low enrollments make it difficult for the health plans to operate efficiently.

  Other health plan news in Illinois:    -- Health plans are expected to show significant increases in their       marketing and advertising spending in the next year, as they push       their new Medicare plans.    -- A recent survey by Great-West Healthcare revealed that consumers still       have little idea of how much healthcare services cost, making it       harder for health plans to tout the cost savings of their consumer-       driven products.    -- Two plans new to Illinois, WellCare and HealthSpring, are taking       advantage of the buzz around Medicare Part D to start Medicare HMOs in       the state.    About HealthLeaders-InterStudy 

HealthLeaders-InterStudy, a company of Decision Resources, Inc. (http://www.decisionresources.com/), is the authoritative source for managed care data, analysis, and news. For more information, please visit http://www.healthleaders-interstudy.com/.

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

   For more information, contact:    Alex Jablokow    Decision Resources    781-296-2562    ajablokow@dresources.com 

SOURCE: Decision Resources, Inc.

CONTACT: Alex Jablokow of Decision Resources, +1-781-296-2562,
ajablokow@dresources.com

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