...Cigna is a multifarious health care organization whose company reaches across the world to provide healthcare, to its consumer. Cigna has roots in the healthcare business from its parental foundation, dating back hundreds of years. In 1982, Cigna began its own venture in the healthcare organization in the state of Connecticut after the unification of Insurance Company of North America (INA) and Connecticut General Life Insurance Company (CG). By expanding its services to customers in the United States and around the globe that provides medical, dental, disability, life and accident insurance, and related products, Cigna has become a global health service leader. Network Growth and Strategies In 2014, Cigna launched a new brand campaign,...
Words: 1076 - Pages: 5
...A major development occurring with Anthem Blue Cross Blue Shield is the agreement for Anthem (a Blue Cross Blue Shield insurer) to acquire Cigna for $54 billion via cash and stock transaction in the second half of 2016, which is dependent upon passing state regulatory approvals and other requirements (CNN Money, 2015). The merger would leave only three major players, Anthem Blue Cross Blue shield, Aetna/Humana, and United Health, in the insurance industry, if approved (CNN Money, 2015). Aetna acquired Humana just recently in a merge, as well as United Health purchasing Catamaran, a pharmacy-benefits manager and prescription provider (CNN Money, 2015). It is believed the reasoning for the mergers is due to the Affordable Care Act because it has meant more business for major insurers, but the law has also put more pressure on industry profits (CNN Money, 2015). However, the merges brings a concern for physicians and the American Medical Association. Physicians fear that it will put too much power in just a handful of insurance companies and the American Medical Association says that it will reduce competition and...
Words: 942 - Pages: 4
...lessons for improving patient outcomes and places a strong emphasis on Preventative Care. KP enables constant patient communication and continuously strives to achieve its ‘Home as a Hub’ goal of providing care. Thus, using the Single Connect Model, KP engages in a pro-active strategy. KP operates within the US managed Healthcare Industry. Over the last 2 years, the implementation of the Affordable Care Act (ACA) created significant opportunities for insurance providers by opening up an untapped market of individuals who were previously uninsured, and combined with increased premiums, resulted in higher Operating Results. Most recently, we witnessed the announcements of mergers and acquisitions among 4 out of the 5 largest insurance providers (Aetna’s merger with Humana for $37 billion and Anthem‘s acquisition of CIGNA for $54 billion). In 2014, KP had 9 million members and annual revenues of $ 56.4 billion, thus, creating big opportunities for high volume Suppliers, while increasing KP’s bargaining power. KP emphasizes procuring generic (cheaper alternatives) drugs, standardized medical equipment from local suppliers (who also provide maintenance and support) and IT products and services from big suppliers such as IBM. Thus, Supplier Power is low, while switching costs of suppliers for KP are not high relative to the switching costs for the supplier. Buyer Power is high due to the price transparency...
Words: 1011 - Pages: 5
...ance; therefore, this measure does not translate to marked improvement. Secondly, the entire healthcare sector is consolidating in response to the new law. This is an unseen (for some) consequence of the legislation that has greatly reduced competition in the sector. As insurers, providers, and healthcare retailer interests http://economicseverywhere.com/welcome/theacaischangingtheindustrialorganizationofhealthcare/ 1/4 5/15/2016 The ACA is changing the Industrial Organization of Healthcare | Economics Everywhere gain power, consumers are left with fewer choices. In recent news there are indications that the five major insurance companies will start the merger process, leaving only three remaining. Aetna is in the process of acquiring Humana, and Anthem is pursuing Cigna. The two remaining super firms will only have one major competitor, UnitedHealth. The three companies will be responsible for administering policies to over half of...
Words: 794 - Pages: 4
...was given seventy-five million dollars State Innovation Model implementation grant from the federal Center for Medicare and Medicaid Innovation. This was driven by the Governor’s Office of Health Transformation with the goal to have healthcare payments coordinated with appropriate health outcomes. This money is being used to establish Ohio’s Comprehensive Primary Care program. This will financially reward primary care practices that keep people healthy that result in decreasing total cost of care by meeting certain measures for activity, efficiency, clinical quality, and total cost of care. Finally, Ohio state attorney, with other states and United States Department of Justice, have filed a lawsuit to block the mergers of Aetna with Humana and Anthem with Cigna. The reason being there will be a decrease in competition, higher costs for consumers, and increase difficulty to negotiate rates for providers (Health Policy Institute of Ohio, 2016). In conclusion, for sometime now, there has been a need for health care reform to control health cost, utilize services, and provide the availability for health insurance for everyone. There are many who argue that the Affordable Care Act was not the way to go about doing this. Give or take, there has been many positives and negatives with the health reform law that has been seen in Ohio and in general for the entire country. Ohio has a long way to go to improve our population health and needs to work on controlling the health care...
Words: 946 - Pages: 4
