People on the Move

August 7, 2020

Effectuated ACA Exchange Enrollment Rises Slightly in Early 2020

August 7, 2020

An average of 10.7 million Affordable Care Act exchange enrollees had effectuated their health coverage — signed up for a plan and paid the first month’s premium — as of March 15, 2020, a 0.9% increase compared with the same period in 2019, according to CMS. The report showed that the average monthly premium per enrollee in February 2020 was $576.16, down 3.0% compared with the February 2019 average premium of $594.17. Colorado saw the biggest decrease, with its average premium dropping from $648.20 in 2019 to $481.52 in 2020. Meanwhile, the average monthly amount of advance premium tax credits (APTC) per eligible enrollee fell 4.0% year over year to $491.53.

by Jinghong Chen

An average of 10.7 million Affordable Care Act exchange enrollees had effectuated their health coverage — signed up for a plan and paid the first month’s premium — as of March 15, 2020, a 0.9% increase compared with the same period in 2019, according to CMS. The report showed that the average monthly premium per enrollee in February 2020 was $576.16, down 3.0% compared with the February 2019 average premium of $594.17. Colorado saw the biggest decrease, with its average premium dropping from $648.20 in 2019 to $481.52 in 2020. Meanwhile, the average monthly amount of advance premium tax credits (APTC) per eligible enrollee fell 4.0% year over year to $491.53.

NOTE: Minnesota data are as of April 15, 2020. Due to Minnesota’s transition to policy-based payments in 2020, the data for the April payment cycle (as of March 15, 2020) were incomplete.

SOURCE: CMS, as of March 15, 2020 and 2019. Visit https://go.cms.gov/39EBfmu and https://go.cms.gov/3g6dSEK.

Datapoint: Missouri Votes in Favor of Medicaid Expansion

August 6, 2020

Just weeks after Oklahoma approved a similar initiative, Missouri voters on Tuesday passed a ballot measure to bring Medicaid expansion to the state by July 2021. 53% of voters approved of the initiative, according to state election data. About 230,000 adults will become newly eligible for coverage under expansion. Missouri currently serves 904,000 Medicaid beneficiaries.

Just weeks after Oklahoma approved a similar initiative, Missouri voters on Tuesday passed a ballot measure to bring Medicaid expansion to the state by July 2021. 53% of voters approved of the initiative, according to state election data. About 230,000 adults will become newly eligible for coverage under expansion. Missouri currently serves 904,000 Medicaid beneficiaries.

Source: AIS’s Directory of Health Plans

Anthem Warns of Greater Commercial Enrollment Drop in Second Half

August 6, 2020

While Anthem, Inc. has seen less of an enrollment dip in its commercial business than it originally feared when the COVID-19 pandemic and economic recession first took hold, the insurer’s executives said during a July 29 earnings conference call that they expect that attrition to accelerate in the coming months as some furloughs become permanent job losses.

From March 31 to June 30, Anthem saw enrollment in its commercial and specialty business lines drop by 290,000. “But as you think about unemployment, that was fairly muted,” especially when it comes to Anthem’s risk-based business, President and CEO Gail Boudreaux said during the earnings call. She and other Anthem executives attributed that effect to the fact that many companies have thus far furloughed rather than laid off workers, thanks in part to federal stimulus funding.

By Leslie Small

While Anthem, Inc. has seen less of an enrollment dip in its commercial business than it originally feared when the COVID-19 pandemic and economic recession first took hold, the insurer’s executives said during a July 29 earnings conference call that they expect that attrition to accelerate in the coming months as some furloughs become permanent job losses.

From March 31 to June 30, Anthem saw enrollment in its commercial and specialty business lines drop by 290,000. “But as you think about unemployment, that was fairly muted,” especially when it comes to Anthem’s risk-based business, President and CEO Gail Boudreaux said during the earnings call. She and other Anthem executives attributed that effect to the fact that many companies have thus far furloughed rather than laid off workers, thanks in part to federal stimulus funding.

“We can’t predict exactly what’s going to happen when they come off [furlough]; it will depend on the strengthening of the economy and what happens there and what employers decide to do,” Boudreaux said.

Ultimately, “we do expect further declines, assuming the economy continues to operate at less than full capacity,” Boudreaux said of Anthem’s commercial business. Meanwhile, Anthem’s Medicaid and Medicare enrollment grew by 599,000 from the first quarter of 2020 to the second quarter. Overall medical enrollment rose by 0.7% between the first and second quarters of this year, and it increased 3.9% in the second quarter of 2020 compared with the prior-year quarter.

Anthem reported adjusted earnings per share of $8.91 per share in the quarter, compared with $4.36 during the prior-year period. The insurer’s quarterly operating revenue was $29.2 billion — an increase of $4 billion, or 15.9% compared with the prior-year quarter — which Anthem attributed to “pharmacy product revenue related to the launch of IngenioRx,” the company’s PBM.

Teladoc Health Reaches Agreement to Buy Livongo in a $18.5 Billion Deal

August 5, 2020

Telemedicine provider Teladoc Health has reached an agreement to buy the diabetes coaching company Livongo in an $18.5 billion deal that will create the first true health tech giant — in an era in which demand for virtual care is surging.

The merger agreement, announced on Wednesday morning, is expected to create a combined company on track to bring in $1.3 billion in revenue this year, up 85% over last year. Jason Gorevic, Teladoc’s current CEO, will be the CEO of the newly combined company, which will be called Teladoc and will be based in New York. The transaction is expected to close by the end of this year, pending approval of regulators and shareholders.

Telemedicine provider Teladoc Health has reached an agreement to buy the diabetes coaching company Livongo in an $18.5 billion deal that will create the first true health tech giant — in an era in which demand for virtual care is surging.

The merger agreement, announced on Wednesday morning, is expected to create a combined company on track to bring in $1.3 billion in revenue this year, up 85% over last year. Jason Gorevic, Teladoc’s current CEO, will be the CEO of the newly combined company, which will be called Teladoc and will be based in New York. The transaction is expected to close by the end of this year, pending approval of regulators and shareholders.

Both companies have seen their stock prices soar during the pandemic, reaching all time highs this week. Livongo’s share price is nearly six times higher than it was at the start of 2020, and Teladoc’s has tripled in that period….

Read the full Stat article