Ohio insurers turn attention to growing Medicaid, Medicare markets

Several of Ohio's largest commercial insurance companies have either acquired or partnered with companies specializing in serving the Medicaid or Medicare population, a shift that underscores the growth in government managed care plans (Source: "Health insurance plans pair up to meet growing Medicaid, Medicare business," Dayton Daily News, Sept. 9, 2012).

Anthem Blue Cross and Blue Shield, Aetna Inc. and Humana Inc. have all either acquired or partnered with Medicaid companies this year. Likewise, Cigna acquired Medicare Advantage plan HealthSpring earlier this year and UnitedHealthcare has made several similar acquisitions in the past decade. 

“I think you’ll likely continue to see consolidation, particularly among the government managed care plans. I think there is far greater growth in this sector than other sectors,” said Michael Muntner, managing director in the health care investment banking group for Credit-Suisse. “In the government sector the price is really dictated by the state government itself. When you look at the Medicaid dollars only 20 percent of Medicaid dollars goes through managed care today. As the proportion goes up, I think the states will start to save money.”