Looking to keep a spring in Grandma's step, HealthSpring provides Medicare Advantage plans and Medicare Part D prescription drug benefits to members in 11 states and the District of Columbia across some 65,000 pharmacies. Its Medicare Advantage plans offer the support of Medicare with additional benefits such as the Medicare Part D prescription benefits, vision and hearing benefits, and transportation programs. In addition, HealthSpring runs a nationwide prescription drug plan (otherwise known as PDPs) and offers management services to independent physician associations in Alabama, Tennessee, and Texas. HealthSpring was acquired by insurance giant CIGNA in 2012.
Change of Company Type
CIGNA paid some $3.8 billion for HealthSpring, with hopes that HealthSpring will give it some bounce in the growing Medicare and seniors segments. It also finds HealthSpring's PDP quite attractive and hopes to carry the HealthSpring model to more parts of the US.
HealthSpring's physician management services include claims processing, provider relations, credentialing, reporting, and other general business office services. The company operates a handful of LivingWell Health Centers that use a team approach (physician, nurse, pharmacist, and nurse educator) to offer services tailored to Medicare recipients. Those clinics are in Alabama, Tennessee, and Texas.
HealthSpring has increased its offerings by adding behavioral health care to its roster of services. HealthSpring contracts with a network of providers to administer behavioral health care services that include a centralized telephonic case management unit and community-based case managers in key markets who provide face-to-face care.
In early 2013 CIGNA reinforced its purchase of HealthSpring by acquiring select Medicare Advantage plans in Texas, Arkansas, and Oklahoma (in the Amarillo, Fort-Smith, Longview-Marshall, and Texarkana markets) from Humana as part of FTC-required divestitures for Humana's purchase of regional insurer Arcadian Health. The buy added more than 3,500 Humana or Arcadian members to HealthSpring's customer rolls.
HealthSpring initially expanded into Georgia when it began offering Medicare Advantage in three counties there in early 2010. Later in the year, it moved into the Pennsylvania and Maryland markets with its acquisition of Bravo Health for $545 million. Along with expanding its reach geographically, the acquisition of Bravo gave HealthSpring a big boost in Medicare Advantage and PDP members (as of late 2010 Bravo Health had roughly 105,000 Medicare Advantage members and 300,000 PDP members). – less