This is all we are hearing right now and the uncertainties and sure there’s more of those to come as the models and algorithms comeimage through the servers where they work and use their business segmentation models for improved profits.  This is an interesting video he completely agrees with me about with truckloads of subsidiaries with United Healthcare. United is making money and as this person discusses anything they make on top of what they already have in place due to Obamacare is a “cherry on top”  he says.  Here’s what I have been saying at the link below.  They have a lot data selling revenue coming in as well. 

Health Insurance Business Under the Radar With Tiered Subsidiaries–Where All the Action Takes Place With Mergers, Acquisitions and Profit Centers-Subsidiary Watch

As the “managing portion of what insurers are doing so the number of data scientists increase as well.  As already covered insurers are purchasing Visa and MasterCard records so they will be advancing into more non linear areas searching for those small connections with billions of data bits and as consumers we need to make sure they play fair and we don’t end up with the “pick six” models where they basically just pick a number and guess.  And who knows there might be some of those out there now as nobody has gone into accountability with math models, and hopefully that comes soon. 

Between Optum (formerly Ingenix) and the OptumInsights, their consulting management services he states United doesn’t even really have Obamacare as part of their profit mix.  He states the pharmacy benefit management is also a big producer of profits for them.  I said the other day that when you look at ACOs it is interesting to see how the subsidiary companies are also involved as a insurer subsidiary may coming running to the rescue to sell software that the hospitals need for their ACO, a sale is profit.   The United subsidiary that makes/distributes the cheap hearing aids comes in a solution to keep costs down for another simple example and money spent there by consumers is profit for that subsidiary.  With consumers having to pay more out of pocket today, there’s even additional dollars that go to the profit side. 

I don’t even think that the Medical Loss Ratio penalties bother them too much as if subsidiaries and other elements of the overall corporation are kicking in with new revenues from data selling or other ventures then the money can be made up there.  Obviously if a company went over in a big fashion, that’s different but Aetna for one  is prepared or it with their Cayman Island reinsurance program if that should occur. 

Subsidiary Watch-Corporate Conglomerate Insurers Reduce Compensation Contracts Using One Subsidiary Then Market Same MDs With Another Subsidiary in Health IT

Other carriers are also discussed and how Blue Cross is very active in the exchanges as they have to be as their strong markets has been individual policies versus the larger amount of business accounts some of the others have.  Capturing the Medicaid market has also been a big focus.  Oh what do I know..back in 2009 I made a post asking “Am I insured by an insurance or a technology company”.  It’s just a matter of following the data, marketing and the money and you can see things arriving a little before the rest maybe.   In some areas human brains can still work as good as algorithm.  BD


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