Things look rosy for large insurers














Over the past 18 months, the managed care industry has seen significant consolidation by UnitedHealth Group, WellPoint, and Aetna — three of the largest health plans in the industry. Because of their sheer size, they have benefited from great market leverage, economies of scale, and solid internal cash flow. As a result, they are in a better position to increase profits than their smaller counterparts, primarily by increasing membership and by mergers and acquisitions.

According to a recent industry overview issued by Merrill Lynch, big insurers are set to improve profitability while expanding market share in 2005–2006. Merrill Lynch expects large companies to outgrow their smaller brethren because they will not have to lower premiums to gain membership. These large companies should maintain a better level of price discipline — charging an appropriate price to cover operating costs.

Large players in this sector have also gained market share from companies that have not been doing as good a job balancing costs and revenues, as well as from regional health plans that are not publicly traded.

Source: Company reports and Merrill Lynch

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to jfedder1@hfhs.org or online at http://p.rfer.us/HENRYFORDlXqAJA

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