HealthLeaders-InterStudy, a leading provider of managed care industry intelligence, finds that HealthSpring Inc.'s initial public offering reveals the insurer's confidence in the business potential of managed Medicare. According to the latest issue of Tennessee Health Plan Analysis from HealthLeaders-InterStudy, this confidence is based, in part, on an expected stability in the federal government's funding commitment to private insurers.
"There is certainly substantial room for growth in the managed Medicare market," said Jane DuBose, HealthLeaders-InterStudy analyst. "In 2004, 91 percent of the commercial market and 60 percent of the Medicaid market across the United States were in managed care plans. In contrast, only 13 percent of the Medicare business is now in managed care -- and the number of people on Medicare is certainly going to continue to grow. I doubt that HealthSpring is going to be the last to try to show a profit from this market."
HealthSpring's Medicare membership has doubled over three years. Starting in central Tennessee, the plan now covers Medicare members in Alabama, Illinois, Mississippi, Tennessee, and Texas. Medicare premiums accounted for 80 percent of the company's total revenues in the first six months of 2005.
Other health plan news in Tennessee: * Managed care membership in Tennessee dipped to 15 percent of the market, as HMOs continued to lose members. * A study by the Tennessee Department of Commerce and Insurance finds that 9.8 percent of the state's population is uninsured, and that 61 percent of that number is employed in full-time jobs. * As a sign of TennCare's new approach to risk sharing contracts with health plans, the state is looking to lure another managed care organization into Middle Tennessee in order to increase member choice in the area. About Health Plan Analysis
Health Plan Analysis identifies key health plan trends, allowing healthcare businesses to create comprehensive strategic plans and sales strategies at state and local levels.
HealthLeaders-InterStudy, a company of Decision Resources, Inc. (http://www.decisionresources.com/), is the authoritative source for managed care data and analysis. For more information, please visit http://www.healthleaders-interstudy.com/.
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