Daily Insurance Report - June 6, 2023

^{UnitedHealth offers over $3 bln for home health firm Amedisys}

^{By Leroy Leo - June 5 (Reuters) - UnitedHealth Group (UNH.N) on Monday made a surprise $3.26 billion all-cash offer to acquire Amedisys Inc (AMED.O), pitting itself against another healthcare company set to buy the home health and hospice care firm. Read Full Article…}

VBA Article Summary

1. ^{UnitedHealth Group, through its Optum unit, has made an unsolicited offer to acquire Amedisys Inc. for $3.26 billion in cash, which amounts to $100 per share. This offer comes a month after Amedisys agreed to be bought by Option Care Health Inc for $97.38 per share in an all-stock deal​1​.}

2. ^{If Optum's offer is accepted, this acquisition would expand UnitedHealth's presence in the home healthcare sector, which it had earlier bolstered by acquiring Amedisys' rival, LHC Group, in a $5.4 billion deal. However, there are concerns about potential scrutiny from the Federal Trade Commission due to UnitedHealth's existing presence in the home health market​1​.}

3. ^{Amedisys' board is currently in exploratory discussions with the UnitedHealth unit, having not yet decided whether Optum's offer is superior to Option Health's. If Amedisys decides to terminate their agreement with Option Care, they will have to pay a termination fee of $106 million​1​.PBMS, The Brokers Who Control Drug Prices, Finally Get Washington’s Attention}

^{Rosen Advisory to Present M&A Education at NABIP’s National Convention}

^{By Brett Rosen, Principal of Rosen Advisory, will be presenting “Intentional Perpetuation” at NABIP’s National Conference being held June 24-28th in New Orleans as part of NABIP’s ongoing commitment to providing M&A education to NABIP members. Read Full Article…}

VBA Article Summary

1. ^{Brett Rosen, Principal of Rosen Advisory, will present a session titled "Intentional Perpetuation" at NABIP's National Conference. This session is designed to help owners plan and optimize value from a merger or sale, covering a three-step process that includes "5 Star Planning", understanding the "Owner Persona", and discussing how to avoid common pitfalls in mergers and acquisitions (M&A)​1​.}

2. ^{The second M&A session at the conference will be a panel discussion featuring several experienced buyers and sellers of agencies. This panel aims to provide real-world examples of successful M&A, offering agency owners a comprehensive view of the M&A market and discussing various topics including buying and selling agencies, merging, and other perpetuation options​1​.}

3. ^{Rosen Advisory is a leading M&A Advisory firm that represents employee benefits and insurance-related owners on their M&A journey. Brett Rosen has been part of over 65 closed transactions and adopts a holistic approach that considers owners, their teams, and their clients. On the other hand, NABIP is a professional trade association representing health insurance agents, brokers, consultants, and benefit professionals. It provides members with resources, networking opportunities, continuing education programs, and industry insights, while also advocating for policy changes impacting the healthcare system​1​.}

^{LIMRA: U.S. Life Insurance Policy Sales Increased 4% in First Quarter 2023, Driven by Small and Mid-Size Carriers}

^{WINDSOR, Conn., June 6, 2023—Total U.S. retail life insurance new annualized premium fell 7% in the first quarter 2023 to $3.75 billion, yet the number of policies sold increased 4% from the prior year. This represents the highest policy sales growth since the second quarter 2021, during the height of the pandemic sales surge. Read Full Article…}

VBA Article Summary

1. ^{Despite the total U.S. retail life insurance new annualized premium dropping by 7% in Q1 2023 to $3.75 billion, the number of policies sold grew by 4% from the previous year. This increase, which is largely credited to small and mid-sized companies, marks the highest policy sales growth since Q2 2021 during the pandemic sales surge. More than half (61%) of this growth was driven by whole life and term sales, possibly indicating a continued interest from middle-market consumers.}

2. ^{Different types of life insurance policies experienced varying levels of growth and decline. Whole life new annualized premium was down 4% from the prior year, yet it rose 9% from Q1 2021. Meanwhile, term life insurance saw a growth in both premium and policy sales by 1% compared to Q1 2022. Indexed universal life premium dropped 16%, but the policy sales jumped by 25%. Conversely, variable universal life premium fell by 4% and policy sales declined by 17%, and fixed universal life product sales saw a 16% decrease in premium and a 13% drop in policy sales.}

3. ^{Regulatory changes seem to have influenced the sales trends. The changes to IRS tax code 7702 in 2022 were linked with the elevated premium that year, and the implementation of the updated NAIC model (AG-49B) in May 2023 likely impacted the surge in smaller indexed universal life policies sold in Q1 2023. These events suggest that alterations to regulatory guidelines can significantly affect the life insurance market.}

^{The Benefits of Adopting a Primary Care Model for Self-Funded Employers}

^{By Corporate Wellness Magazine -In today's fast-paced corporate world, the health and well-being of employees have become paramount. As organizations continue to explore innovative approaches to improve employee wellness, adopting a primary care model for self-funded employers has emerged as a highly effective solution. By prioritizing comprehensive primary care within the workplace, companies can significantly enhance employee health outcomes, reduce healthcare costs, and foster a positive work environment. Read Full Article…}

VBA Article Summary

1. ^{Improved Access to Quality Care: Primary care models enhance access to healthcare services for employees, with healthcare professionals available directly in the workplace. This model enables employees to receive timely and convenient care without navigating external healthcare systems. Primary care providers can develop a deep understanding of each employee's medical history, preferences, and specific health needs, which allows for more accurate diagnoses, appropriate treatment plans, and better coordination of care. This personalized approach can lead to improved health management and overall employee well-being​1​.}

2. ^{Enhanced Preventive Care and Comprehensive Wellness Programs: The primary care model emphasizes prevention, incorporating measures like regular health check-ups, vaccinations, and health screenings into the workplace. This approach helps to proactively identify health risks and provide early interventions, which can improve employee health and reduce healthcare costs. This model also aligns well with comprehensive wellness programs, which can include initiatives such as nutrition counseling, stress management workshops, fitness classes, and mental health support. By integrating primary care with wellness programs, employers can address a wide range of health concerns and foster a culture of well-being throughout the organization​1​.}

3. ^{Cost Savings and Enhanced Employee Engagement: Adopting a primary care model can result in significant cost savings for self-funded employers. By providing accessible primary care services on-site, companies can reduce expensive emergency room visits and unnecessary specialist consultations. Early identification and management of health conditions can prevent costly hospitalizations and treatments. Furthermore, the savings achieved through a primary care model can be reinvested into enhancing wellness programs and other employee benefits. This model also leads to increased employee engagement and satisfaction, as it demonstrates an employer's commitment to employee well-being, which can result in a more motivated, loyal, and productive workforce​1​.}

^{Characteristics of Adults Aged 18–64 Who Did Not Take Medication as Prescribed to Reduce Costs: United States, 2021}

^{By Laryssa Mykyta, Ph.D., and Robin A. Cohen, Ph.D. - Since the 1999 Institute of Medicine report, hospitals have implemented a myriad of measures to protect patients from medical errors. At this point, looking beyond errors may bring additional safety benefits. This study aims to analyze predictors of in-hospital death regardless of underlying diagnoses in an effort to identify additional targets for improvement. Read Full Article…}

VBA Article Summary

1. ^{Demographic Differences: In 2021, of the adults aged 18-64 who took prescription drugs in the past 12 months, 8.2% reported not taking their medications as prescribed due to cost. This group primarily included women, with 9.1% reported non-adherence to prescribed medication compared to 7.0% of men. Non-adherence also varied by race, with non-Hispanic other or multiple race adults (11.5%) and non-Hispanic Black adults (10.4%) more likely to not take their medication as prescribed due to cost than non-Hispanic White (7.4%) or non-Hispanic Asian (6.8%) adults.}

2. ^{Health Status and Insurance Coverage: Adults with disabilities and those in poor health were more likely to not adhere to their medication due to cost. Specifically, 20.0% of adults with disabilities did not take medication as prescribed, nearly three times the rate of adults without disabilities. Uninsured adults (22.9%) were more likely to not take their medication as prescribed compared to adults with Medicaid (8.0%), private health insurance (6.5%), and other health coverage (11.4%).}

3. ^{Impact of Income and Prescription Drug Coverage: The data also showed that as family income as a percentage of the federal poverty level increased, the percentage of adults not taking medication as prescribed decreased. Furthermore, adults without prescription drug coverage were more likely to not adhere to their medication regimen due to cost, with 18.1% not taking medication as prescribed, compared to 6.6% of adults with private prescription drug coverage, and 7.6% of adults with public program coverage. Despite this, no significant difference was observed in medication adherence between adults with private and public drug coverage.}

^{‘We’ve Already Made Changes’ to the System: How Doulas Are Advancing Maternal Health Outcomes}

^{By Marissa Plescia -Doulas — who provide physical, emotional and informational support to expectant mothers — have shown to improve maternal health outcomes, but there's little insurance coverage of their services. That's starting to change, however, particularly in Medicaid programs. Read Full Article…}

VBA Article Summary

1. ^{Role of Doulas in Maternal Health: Doulas provide physical, emotional, and informational support to expectant mothers throughout their pregnancy and postpartum period, helping to improve maternal health outcomes. Their services include assisting mothers in self-advocacy during the birthing process, offering pain management techniques, discussing nutrition, preparing mothers for doctor's appointments, and supporting them during the postpartum period with tasks like breastfeeding. Their role is particularly significant in providing culturally appropriate care and supporting vulnerable populations, such as Black women who often feel they are not listened to during pregnancy​1​.}

2. ^{Insurance Coverage of Doula Services: Despite the proven benefits of doula services, insurance coverage for these services has been sparse, especially in private insurance. However, there has been a gradual shift towards greater coverage, particularly in Medicaid programs. As of the article's publication, 10 states and the District of Columbia actively reimburse doula services under Medicaid, and six more are in the process of implementing such benefits. Yet, execution in states that do provide coverage is inconsistent, with significant variability in reimbursement rates. Rhode Island is the only state to have passed legislation requiring private health plans to cover doula services, with several other states considering similar expansion​1​.}

3. ^{Future of Doula Coverage: There is growing interest in expanding doula coverage among patients, payers, and states, particularly under Medicaid, with the aim of improving the quality of maternity care. Digital health companies, such as Mae and Maven Clinic, are also stepping in to facilitate the coverage of doula services by working with health plans and helping community-based doulas receive reimbursement. Despite the current disparities in insurance coverage for doula care, there is optimism that doula services will become a more mainstream, accepted, and supported aspect of the healthcare system in the future​1​.}