CSG Actuarial continues to monitor the latest news in the insurance industry. In this week’s post, we highlight an update from Reuters on the Aetna-Humana merger, a review of essential facts about Medicare and prescription drug spending from Kaiser Family Foundation, and a Medicare Supplement rate increase from Blue Cross Blue Shield of Michigan published in the Detroit Free Press.
Aetna-Humana | Reuters, July 7, 2016
The U.S. Department of Justice has significant concerns about Aetna Inc’s proposed acquisition of health insurer Humana Inc, a source familiar with the situation said on Thursday, sending shares of Humana down as much as 11 percent.
Aetna’s purchase of Humana would combine two of the largest providers of Medicare Advantage plans for elderly people, and investors have long been concerned the deal might pose a competition issue for antitrust regulators.
10 Essential Facts about Medicare and Prescription Drug Spending | Kaiser Family Foundation, July 7, 2016
Prescription drugs play an important role in medical care for 57 million seniors and people with disabilities, and account for $1 out of every $6 in Medicare spending. The majority of Medicare prescription drug spending is for drugs covered under the Part D prescription drug benefit, administered by private stand-alone drug plans and Medicare Advantage drug plans. Medicare Part B also covers drugs that are administered to patients in physician offices and other outpatient settings.
Blue Cross Blue Shield Michigan Medigap Rate Increases | Detroit Free Press, July 6, 2016
Nearly 200,000 Michigan seniors can expect to pay more for their Medigap supplemental health insurance plans next year — for some older individuals, more than twice their current amount — when Blue Cross Blue Shield of Michigan goes forward with a long-awaited rate increase that does away with what the insurer says are below-market rates.
Blue Cross today proposed the new Medigap rates that would take effect on Jan. 1, following a five-year rate freeze for its Legacy Medigap plan.
The new rates would — for the first time — take into account a person’s age, gender and geographic location. This change will result in men and older seniors paying more than women and younger seniors.
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