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. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help

ADVERTISEMENT