J.P. Morgan 2023 healthcare convention dwell updates, Day 2

CVS well being CEO Karen Lynch mentioned the agency was out there inside the market for a important-care asset however she steered away from immediately addressing hypothesis the agency was exploring an acquisition of Oak avenue well being.

She did not title firms seen as potential acquisition targets. “we have now to make sure it’s the biggest asset, on the biggest time and proceed to decide selections,” Lynch mentioned. “This isn’t a one-and-carried out.”

Citing people acquainted with the matter, Bloomberg on Monday reported CVS was exploring an acquisition of Oak avenue well being which will worth the important care supplier at better than $10 billion, collectively with debt.

a lot of Lynch’s presentation was an replace on subsidiary Aetna’s Medicare benefit membership enrollment. She mentioned membership grew by low- to mid-single-digits all by means of the annual signal-up interval this yr. “This consequence’s ensuing from a extremely aggressive open enrollment interval,” she mentioned.

Aetna counted three.2 million Medicare benefit members as of Sept. 30.

whereas Lynch mentioned she was “upset” inside the insurer’s potential to grab new Medicare benefit members, Aetna reported strong gross sales amongst clients dually eligible for Medicare and Medicaid and from employers procuring for group Medicare benefit plans for his or her retired staff, she mentioned.

The enrollment miss comes as Aetna’s largest Medicare benefit plan will lose the enormous extreme quality bonuses associated to the Medicare benefit star scores extreme quality program. That represents a headwind for 2024, Lynch mentioned. “We’re going to work actually arduous with our distribution channels, and with our revenue designs, to mitigate that hazard for people,” she mentioned.

The insurer has obtained approval from federal regulators to diversify its important most properly-preferred supplier group contract, which would possibly assist mitigate amongst the numerous hazard in 2024, Lynch mentioned. Aetna has additionally focused on enhancing members’ expertise in its Medicare benefit plan, which would possibly drive its scores upward, she mentioned.

Aetna has expert a sturdy open enrollment season amongst clients trying for particular person safety on the state and federal exchanges. the agency expects so as to add better than seven hundred,000 new particular person market members in 2023, bringing its complete to 750,000 alternate lives. Open enrollment ends Jan. 15.

“the particular person market has had one other yr of disruption, driving members to choose out new plans,” Lynch mentioned.

the agency expects to close its $eight billion acquisition of Signify well being, a dwelling well being and doctor enablement know-how agency, all by means of the yr’s first half.

—Nona Tepper


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