IBJNews

WellPoint sees $100 billion 'duals' market as care shifts

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based WellPoint Inc. sees a $100 billion market in the states it serves to provide managed care for poor, elderly patients in the Medicare and Medicaid programs.

WellPoint’s purchase last year of CareMore Health Group and its 29 neighborhood health clinics gives the insurer an edge in winning the business for so-called dual eligibles, Chief Financial Officer Wayne DeVeydt said Wednesday. WellPoint has 29 CareMore centers in California, Nevada and Arizona and plans to add 12 more and expand to other states this year, he said.

“Because this is a group that needs highly coordinated care, you really need a model that specializes in that, and that’s what CareMore does for us,” DeVeydt said. “It’s kind of our missing link in being prepared for the duals, and we think we’re uniquely positioned versus some of the other companies out there.”

About 9 million people in the U.S. are covered by both Medicare, the federal program for the elderly and disabled, and Medicaid, the state-federal plan for the poor. This group accounts for $320 billion in annual spending in the two health programs, said Carl McDonald, a Citigroup analyst, in an April 24 report to clients.

Seeking to cut costs, at least 15 states, led by California, Texas and Florida, may issue contracts in the next two years to let managed-care companies coordinate their medical coverage, McDonald said.

The group “represents an enormous market for the industry,” he wrote.

DeVeydt, in an interview after WellPoint announced its quarterly earnings, said the company would seek dual-eligible contracts first in the 14 states where it operates Blue Cross plans before trying to expand elsewhere. The company will participate in a pilot project in California to cover dual enrollees starting next year.

“We want to prove to our state partners and to the federal government that we can manage this population well, and that we can show better value for them and save the states money,” DeVeydt said.

WellPoint earlier said earnings excluding one-time items were $2.34 a share in the first quarter, beating the $2.30 estimate of 17 analysts compiled by Bloomberg. The company raised its full year forecast for profit excluding certain items to $7.65 a share.

The insurer's stock declined less than 1 percent, to close at $70.40 per share. The shares are down 2.5 percent in the past 12 months
 

ADVERTISEMENT

  • medicare/medicaid
    I believe the number of people covered by medicare or medicaid is 90 million not 9 million
  • Payments Soon Payoff
    Suddenly folks are starting to see the impact of Healthcare Insurance and Pharmaceutical companies piling millions of dollars into the campaign coffers of every Member of the US House and Senate, starting in 2009. While many Americans were screaming foul regarding the Healthcare Bill, companies like WellPoint were giving millions of dollars to everyone who may have a vote in the National Healthcare Delivery Plan. It is about profits, not your money.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT