The nation’s top five health insurers made $11.7 billion in profits in 2010, according to a release from Rep. Pete Stark (D-Calif.). 



That made the top five health insurers more profitable than the top five energy companies, construction companies, airlines, motor vehicle and part manufacturers and food and drug stores.

Here is a breakdown:

UnitedHealth Group. It made $4.63 billion in profits last year and collected $6.09 billion more in premiums over 2009, while only spending $3.55 billion more on medical care.

WellPoint. It made $2.89 billion in profits last year and spent $637 million less on medical care compared with 2009, while collecting $545 million less in premiums.

Aetna. It made $1.77 billion in profits last year and spent $1.34 billion less on medical care compared with 2009, while collecting $633 million less in premiums.

Cigna. It made $1.35 billion in profits last year and collected $2.35 billion more in premiums over 2009, while only spending $1.64 billion more on medical care.

Humana. It made $1.10 billion in profits last year and collected $2.79 billion more in premiums over 2009, while only spending $2.31 billion more on medical care.

Tags: 2010 Health Insurance Company Sales, Health Insurance Companies 2010 Profits, Health Insurance Profits

Group insurance benefits experts have long used Guardian for their clients’ dental, vision, disability and life insurance needs. Guardian never became a heavy hitter in the group medical insurance arena as shown by the comparatively small number of employees covered by their group plans.

It is a good move by UnitedHealthcare to acquire these groups. But since this change in carriers is being thrust upon these groups, it would be wise for them to look at other carriers and not assume that they will be getting the best plan for their group with this transition.

Here is the original report:

Guardian Life Insurance Co. of America is exiting the group medical insurance market and has reached an agreement with UnitedHealthcare to renew coverage for Guardian clients. In a memo to brokers prepared in a question-and-answer format, New York-based Guardian said “its modest medical market share and its use of rental networks significantly hampered its ability to compete in the group medical sector that has frequently favored large national medical carriers.”

As a result, “Guardian has determined that continuing in the medical insurance business is no longer a strategic fit,” the memo said.

Guardian Life will withdraw its medical insurance product line in all states, and will wind down its existing business over the next two years. The decision was announced in a Jan. 25 e-mail to brokers from Scott Dolfi, Guardian’s E.V.P. of Business Operations.

The carrier will drop its group medical plans, both self-funded and fully insured, as well as its prescription drug plans and individual medical coverage. The move will not impact Guardian’s non-medical product lines, according to Dolfi. These include dental, disability, life, critical illness, voluntary worksite, retirement plans and individual life and disability offerings.

As part of the transition, Guardian is working with UnitedHealthcare to provide comparable health care plans for clients. UnitedHealthcare has entered into an agreement to renew medical insurance coverage for The Guardian Life Insurance Company of America’s medical plan customers and will broaden choice and access to care for Guardian medical customers through one of the largest local and national networks in the country, highly integrated clinical programs and a full range of affordable products.

The following is a quick overview of what Guardian individual and group clients can expect:

• As Guardian’s medical customers reach their renewal dates, dedicated UnitedHealthcare sales representatives will work to enroll these customers in a comparable UnitedHealthcare plan.
• Guardian medical customers are also welcome to transition to a new medical plan with UnitedHealthcare ahead of their renewal date. 
• Until members are enrolled in a medical replacement plan with UnitedHealthcare or Guardian’s withdrawal becomes effective, their current benefits remain in effect under their existing contract with Guardian. 
• During this process, it is business as usual. Guardian is committed to ensuring continued service, medical coverage and payments for its customers during the transition period.  

Guardian intends to continue to offer other benefit coverages, including dental, life, disability and vision care. Guardian’s group health care business primarily comprises small and midsize employers, and most of the plans it offers are preferred provider organizations, the Guardian spokesman said.

Tags: Guardian Insurance Company Exits Health Insurance Market, United Healthcare and Guardian, United Healthcare buys Guardian, United Healthcare Takes over Guardian health insurance

Effective November 15, 2010, Advocate BroMenn Medical Center and Advocate Eureka Hospital and their employed Advocate physician partners will be participating with UnitedHealthcare® and UnitedHealthcare of the River Valley commercial lines of business.

These new agreements with Advocate significantly expand access for UnitedHealthcare commercial membership in the Bloomington, Normal and Eureka communities of Illinois. Please note because these providers are effective November 15, 2010, they will not yet reflect participating status in systems or directories.

Tags: Advocate BroMenn Now Part of United Healthcare PPO Network, United Healthcare and Advocate BroMenn Medical Center, United Healthcare and Advocate Eureka Hospital, United Healthcare Illinois PPO Network Updates

-UnitedHealthcare and Silver Cross Hospital in Joliet, IL, today announced they have signed a new multi-year network agreement. The contract includes all Silver Cross inpatient and outpatient services. The Free-Standing Emergency Center in Homer Glen, IL, the Center for Women’s Health in New Lenox, IL and the hospital’s three dialysis centers– Silver Cross Renal Center in Morris IL, and Silver Cross Renal Center East and Silver Cross Renal Center West, both in Joliet are all covered by the contract.

This new agreement, effective Dec. 1, expands UnitedHealthcare’s network hospitals in the greater Joliet area, and covers all commercial products.

“Our new network relationship with Silver Cross Hospital gives our customers greater access to high-quality medical facilities and skilled physicians closer to where they live and work,” said Tom Wiffler, president & CEO of UnitedHealthcare of Illinois. “Silver Cross is an important provider of health care services in the area. We believe this agreement strengthens our shared commitment to deliver broader access to quality, affordable health care for consumers.”

“The UnitedHealthcare agreement is a major addition to our health insurance offerings,” said Paul Pawlak, President and Chief Executive Officer with Silver Cross Hospital. “This strategy is part of our commitment to expand the number of insurers in our network in direct response to the growth in our community and the feedback we have received from residents. We are very pleased to offer this new choice to area employers and patients.”

Tags: Silver Cross Hospital and United Healthcare, Silver Cross Hospital and UnitedHealthcare Enter in to Multi-Year Agreement, Silver Cross Hospital Now Part of United Healthcare PPO Network

Mayo Clinic has announced a new network relationship with UnitedHealthcare, giving UnitedHealthcare commercial plan customers in-network access to Mayo Clinic physicians and hospitals beginning Nov. 1, 2010.

The new network relationship covers all Mayo group practices and hospitals in Jacksonville, Fla., Scottsdale/Phoenix, Ariz., and Rochester, Minn.

“This national agreement with UnitedHealthcare will allow even more people to experience Mayo Clinic,” says John Noseworthy, M.D., Mayo Clinic president and CEO. “Our patients tell us they come to Mayo for our team approach to health care, our ability to find answers and the peace of mind they have knowing that they receive care from many leading experts in their fields. We welcome the opportunity to serve UnitedHealthcare’s commercial plan participants.”

“Mayo Clinic is nationally recognized for delivering quality health care services,” says Michael O’Boyle, president, UnitedHealth Networks. “We look forward to working together to provide UnitedHealthcare customers access to the outstanding services provided by the physicians associated with Mayo Clinic’s three campuses across the United States.”

Mayo Clinic works with UnitedHealthcare and many other insurance companies and is an in-network provider for millions of people. In most cases, Mayo Clinic doesn’t require a physician referral. In fact, more than 8 out of every 10 patients come to Mayo Clinic on their own, without a referral from another physician.

Tags: 2010, Mayo Clinic and UHC Network, Mayo Clinic Joins United Health Care Network, Mayo Clinic Joins United HealthCare Nework effective November 1, Mayo Clinic now part of United Healthcare PPO Network

UnitedHealthcare today announced it has entered into an agreement to renew medical insurance coverage for The Principal Financial Group’s (The Principal®) medical plan customers as The Principal completes its plans to exit the medical insurance business. The Principal will continue to offer life insurance, dental, disability, vision and wellness programs.

The Principal selected UnitedHealthcare to provide an easy and attractive transition option for its customers to renew their health plans. The Principal currently covers customers in 31 markets nationwide, predominantly throughout the Central United States, where UnitedHealthcare offers an extensive network of physicians, hospitals and other health care providers.

“UnitedHealthcare provides a broad range of coverage options to meet customers’ needs. By working with UnitedHealthcare, a proven leader and long-term player in the business with an extensive local and national network, we will ensure a smooth transition for customers and brokers,” said Dan Houston, president – Retirement, Insurance & Financial Services at The Principal.

“We are grateful for the opportunity to serve the health and well-being needs of The Principal’s customers with a broad range of high-quality, affordable health care products from traditional plans to innovative consumer-driven services,” said Kathryn Sullivan, CEO, UnitedHealthcare’s Central Region. “Through UnitedHealthcare, The Principal’s customers will have one of the largest local and national care provider networks in the country, highly integrated clinical programs, proactive care management and wellness tools, and technology that simplifies health care delivery.”

As The Principal’s medical insurance customers reach their medical plan renewal dates, UnitedHealthcare will work to enroll them in a comparable UnitedHealthcare plan. Until plan participants are enrolled in a replacement plan, their current benefits remain in effect under their existing contract. The Principal is committed to ensuring continued service, medical coverage and payments for its customers during the transition period.

Principal generated $344 million in premium revenue by providing health coverage for about 725,000 people in the second quarter.

Principal has about 1,500 employees in its health insurance business. The decision to get out of the health insurance business will affect 150 employees immediately, the company says.

Principal hopes to place some of the affected employees in other jobs at the company, the company says.

Principal has been selling group health insurance since 1941.

Principal Chairman Larry Zimpleman says rapid changes in the medical insurance business would require the company to invest more capital to continue to offer competitive products.

“For us, that just does not make sense,” Zimpleman says in a statement.

Principal’s medical insurance business has been performing well financially, but the company’s retirement and asset management businesses have grown more quickly, and the relative size of the medical insurance business has been declining, Zimpleman says.

Shutting down the medical insurance business should free more than $100 million in capital, the company says.

Tags: Principal Financial gets out of group health market, United Healthcare and the Principal Financial Group, United Healthcare buys Principal, United Healthcare Principal Merger

For 10/1/10 and later effective dates, Aetna will discontinue new business sales of child-only policies to applicants (under the age of 19) for Aetna Advantage Plans for Individuals, Families and the Self Employed. No existing policyholders are affected by this action.

Effective immediately, any applications received requesting a child-only policy with a 10/1/10 effective date (or later) will be closed. Underwriting will notify applicants by mail of their ineligibility, but also provide options for coverage – see below.

Why is Aetna making this change?
This change positions Aetna for the future so they can effectively handle upcoming changes resulting from healthcare reform (i.e. they are likely to lose money on child-only coverage). New federal rules require guaranteed issue (GI) of coverage for individuals under the age of 19 and no corresponding coverage requirement. These conditions have the potential to significantly increase the cost of premiums and make coverage unaffordable.

No impact to existing child-only policies
Existing policyholders will not be impacted by this action and they may continue their current coverage. These policies are renewable

States affected
Discontinuation of child-only coverage for the following states AK, AR, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KS, KY, LA, MI, MO, MS, NC, NE, NV, PA, SC, TN, TX, VA, WV, and WY will occur on 10/1/10. The implementation date for the following states CT, MD, OH, and OK is still being established.

Other health insurance options available for individuals under age 19

• Be added as a dependent to a parent’s plan.
• If the above option is not a viable solution, applicants can check www.healthcare.gov for alternatives

Aetna continues to explore options with states where they are ceasing the sales of new child-only policies, including reviewing other regulatory changes that may allow them to re-enter this market and provide a valuable product between now and 2014, but this is highly unlikely.

Tags: Aetna Child Policies, Aetna Children Coverage, Aetna Discontinues Child Only Policies

As of June 1, 2010 Blue Cross and Blue Shield of Illinois (BCBSIL) is offering new Medicare Supplement Insurance Plans G and N. Members and those considering Plans G and N can enroll at anytime; there are no specific enrollment periods or deadlines. The changes to the configuration of Medicare Supplement plans are the result of the “Medicare Improvements for Patients and Providers Act of 2008” (MIPPA), which took effect on June 1.

All plans sold after June 1 have an enhanced hospice benefit, which includes coverage for some outpatient prescription medications and copayments and coinsurance for inpatient respite care, which were previously the responsibility of the insured.

These 2 plans are essentially replacing Plans D and E. Plan D is comparable to plan G but not quite as popular a plan. Plan E is a casualty of the Medicare Modernization Act of 2003 and can no longer be sold by any company. Folks who currently have Plan D or E from BCBS of IL are “grandfathered” in and can keep these plans because they are guaranteed renewable for life.
(more…)

Tags: BCBSIL Plan G, BCBSIL Plan N, Blue Cross and Blue Shield of Illinois New Medicare Supplement Plans, Blue Cross Blue Shield Illinois 2010 Medicare Plans 2010

BlueCare Dental provides members with access to the nation’s largest dental care network of access points, with more than 152,000 nationwide.* With so many access points, BlueCare Dental members have great flexibility to see a dentist and use their BlueCare Dental benefits when and where it is convenient for them.

BlueCare Dental providers are credentialed, and the network has the largest number of dental access points in many states, including Illinois. Across the state, members will find 5,711 access points.** In fact, contracting dentists are located in all 50 states. Also, the average provider discount in Illinois is 32.6 percent (based on the average in-force fees).

With Blue Access® for Members (BAM) at www.bcbsil.com, it’s easy for members to select a dentist because they can search for a provider online any time. BAM’s Provider Finder® tool is updated weekly with new network information.

Tags: BCBSIL Dental Network, Blue Cross Blue Shield Dental Network

The open enrollment period to add dependents to an existing Blue Cross® and Blue Shield® of Illinois (BCBSIL) individual policy is coming to an end on March 31, 2010. During this period there are no medical questions and the policy is guaranteed issue. The 12 month pre-existing condition waiting period is still applicable.

In order to qualify for the open enrollment period, the existing policy must have been in force prior to June 1, 2009. The open enrollment applies to all dependents under age 26 (and eligible military veterans under age 30), including children and/or spouses.

Tags: BCBS Individual Policy Open Enrollment for Dependents Deadline, BCBSIL Open Enrollment, Blue Cross and Blue Shield of Illinois Add Dependent to Age 26 Deadline, Blue Cross Blue Shield of Illinois dependent additon