The battle for the big contracts, government and private industry continues. Both UnitedHealthCare and Aetna stand to gain. United will get to keep 1.5 billion and I’m sure the Aetna portion is also pretty sizable. Humana and Health Net are the previous contract holders and loser in this round of bids for business. In other related news this week, United is spending millions of dollars with Cisco for a telehealth network. Do these folks still process and pay claims?
Update Cisco Lays Off Hundreds - UnitedHealth To Spend Tens of Million of Dollars with Cisco to Build Nationwide Telehealth Network –
Not too long ago United had this to say:
United Health Care Says Cheaper Efficient Doctors and Reducing Hospital Visits by the Elderly Would Help Reduce the Cost of Healthcare
Aetna locked up an agreement with Bank of America:
Here Come the Health Coaches - Aetna Locks Contract with Bank of America for Health Insurance for 3 Years – Cigna Lines Up 3 Major Employers
In Blue Cross news we heard this:
“In God we trust; all others must bring data” – Blue Cross Blue Shield Invests in more Business Intelligence Software
It appears to be a “big three” type of emergence happening here here with the race to be the king of risk management. Again, as mentioned before, the one word that seems to be missing in all these press releases and posts is the word “physician”. UnitedHealthCare has been the target of many states suing them over the balance billing situation with Ingenix of late and Senator Rockefeller recent asked the CEO “How Do You Sleep at Night”. BD
The Minnetonka-based health insurer announced late Monday it has landed a multibillion-dollar contract from the Defense Department to manage health benefits for military members, veterans and their dependents in the southern part the country.
The five-year contract covers about 3 million beneficiaries of TRICARE, the Defense Department’s military health program. It begins April 1, 2010, with the transition period beginning immediately.
The remaining $1.5 billion will go to UnitedHealth for processing claims, managing provider networks and for other forms of customer service. This is the first year that UnitedHealth has bid for the TRICARE contract. It beat the incumbent, Humana Inc., for the southern region.
The northern region contract went to Aetna Inc., which beat incumbent Health Net Inc. For the western region, TriWest Healthcare Alliance in Phoenix got its contract renewed.
Hat Tip: HisTalk