Thursday, May 25, 2017

On Top of Potential MA Growth, MCOs Are Tracking Dozens of RFPs

Reprinted from MEDICARE ADVANTAGE NEWS, biweekly news and business strategies about Medicare Advantage plans, product design, marketing, enrollment, market expansions, CMS audits, and countless federal initiatives in MA and Medicaid managed care. 
By Lauren Flynn Kelly, Managing Editor
As several Medicaid-focused managed care organizations look to Medicare Advantage as a new area of growth for the companies, executives during recent conference calls to discuss first-quarter 2017 earnings noted that Medicaid continues to present a robust pipeline of opportunities.
Anthem, Inc., which is implementing new Medicaid business in Texas and Virginia that is expected to go live later this year, said it is anticipating the results of six active RFPs in the next couple of months and monitoring another 15 to 20 RFPs that it expects to be released over the next year and a half. Those will include opportunities for additional business in new and existing Anthem states and existing contract rebids, “which in many cases will offer the potential for additional opportunities” in the insurer’s current contracts, remarked Chief Financial Officer John Gallina during an April 26 earnings conference call.
And while WellCare Health Plans, Inc. doesn’t plan to bid on all RFP opportunities, CEO Kenneth Burdick during a May 3 call stated, “Given the resources that we have added to our business development team, we plan on taking more swings and more add-backs.” But he said the company will remain “strategic and focused” as it looks to participate in “significant opportunities” that appear over the next year or two.
One state’s rebid process that’s creating uncertainty among some Medicaid MCOs is Illinois, which in 2018 plans to take its managed Medicaid program statewide and limit the number of contracted insurers from the current 12 to between four and seven (MAN 3/30/17, p. 4). The state in February began soliciting bids from interested insurers; full proposals are due no later than May 15 and awards will be unveiled by the end of June.
During an April 26 conference call to discuss first-quarter earnings, Centene Corp. Chairman and CEO Michael Neidorff said he believes the company is “well positioned” to win in Illinois but whether Centene continues to move forward with the process will largely depend on the rate bands and actuarial studies assessing the potential profitability of the contract. “We have a strong network. We have statewide a lot of places where others have pulled out recently. They’re asking us to contract with them,” he said.
Cigna Corp., meanwhile, during a May 5 conference call to discuss recent earnings said it does not plan to participate in the Illinois Medicaid market next year and does not expect that exit to impact earnings.
https://aishealth.com/archive/nman051117-03?utm_source=Real%20Magnet&utm_medium=Email&utm_campaign=112319014

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