Aetna CFO Joseph Zubretsky recently told the Dow Jones Newswires and Wall Street Journal that the commercial-based health insurer believes it can serve beneficiaries covered by both Medicare and Medicaid, or dual eligibles, even though it does not yet have skin in the game.
Some of Aetna's competitors, such as UnitedHealth Group, WellPoint and Cigna, have all made acquisitions of Medicare Advantage companies, and other health insurers like Centene already have large stakes in the Medicaid market.
Mr. Zubretsky said the dual eligible market, which could represent $300 billion in potential revenue for health insurers, will not develop overnight, and Aetna will figure into the equation over time.
"The opportunity has been reflected in certain managed care valuations long before the revenue is ever going to show up," Mr. Zubretsky said in the report. "This is not a cataclysmic event where $300 billion dollars is going to race into the market inside of 12 months. It's going to happen in a phased approach."
Some of Aetna's competitors, such as UnitedHealth Group, WellPoint and Cigna, have all made acquisitions of Medicare Advantage companies, and other health insurers like Centene already have large stakes in the Medicaid market.
Mr. Zubretsky said the dual eligible market, which could represent $300 billion in potential revenue for health insurers, will not develop overnight, and Aetna will figure into the equation over time.
"The opportunity has been reflected in certain managed care valuations long before the revenue is ever going to show up," Mr. Zubretsky said in the report. "This is not a cataclysmic event where $300 billion dollars is going to race into the market inside of 12 months. It's going to happen in a phased approach."
More Articles on Commercial Payors:
Medicare Spends 14% Less Than Commercial Payors on Total Knee Replacements
Private, Government Payors Are Top Financial Concerns for Hospital Executives