Profit and revenue at Centene Corp. rapidly ascended in the second quarter, a trend that has defined the St. Louis-based health insurer for the past two years. The company's pending acquisition of Health Net has it primed for even larger growth.
Investors now have a heightened interest in behavioral health after new laws have gone into effect giving treatment for mental disorders payment parity with physical illnesses. Insurers and government payers also are beginning to see treatment of behavioral health disorders as a wise investment.
An insurer's transformation: Humana's evolution into Medicare powerhouse offers strong lure to Aetna
An acquisition by Aetna would bring an end to the half-century of radical company makeovers by Humana and create an insurance giant in the fast-growing market for government-subsidized health plans.
Federal antitrust reviewers will likely look market to market in deciding whether to approve the proposed Aetna-Humana merger and other looming health insurance industry tie-up deals, experts say.
Legal experts agree that massive insurer consolidations will likely draw intense antitrust scrutiny, but whether those reviews will destroy the deals is an open question.
Medicaid managed-care provider Centene Corp. is buying insurer Health Net in a $6.8 billion cash and stock deal.
Aetna will spend $37 billion to buy rival Humana and become the latest health insurer bulking up on government business as the industry adjusts to the federal healthcare overhaul.
The health insurance industry is on the verge of large-scale consolidation as its leaders seek to drive down costs, increase negotiating leverage and boost profits. But that could spur more consolidation among providers to counter the greater bargaining power of a smaller number of big insurers.
UnitedHealth Group saw an upsurge in its government business as it topped Modern Healthcare's list of the largest publicly traded health insurance companies in 2014. Nearly all of insurers on the list enjoyed an increase in total revenue in 2014 compared with the previous year.
The federal government is loosely capping the profits of Medicaid managed-care insurers. But many large companies already live within the proposed ratio, raising questions about the regulation's influence.
Dr. Stephen Grubbs has been named senior director of the new clinical affairs department of the American Society of Clinical Oncology in Alexandria, Va.
Centene Corp., one of the largest Medicaid managed-care insurers in the country, nearly doubled its profit in the first quarter as the company continues to win state contracts.