Per Modetn Heslthcare- HCSC is cutting the Medicare advantage footprint in half already. Why have we not been told this?
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@wk J E S U S C H R I S T
In leadership terms we call it inward expansion so it sounds like growth.
The funny part is that this is before the Middling Medicare increase that is expected for 2027, the expectation for the increase before they made the acquisition was very likely 2-2.5 times larger.
In other words, there's still room for some more pain from the gift that keeps giving also known as the Cigna acquisition
Saw this on an investor site:
In December 2024 Bryan Roberts and I predicted that HCSC would walk away from Cigna's Medicare Advantage book. My reasoning: the benefits were too rich, the risk pool was adverse, and the whole thing was "too big to clean up."
We got that wrong. They bought it for $3.3B. A year later, grading our predictions, the best we could do was list HCSC under “Things That Surprised Us” — specifically, their "willingness to incinerate a ton of money."
Today HCSC announced it's exiting MA entirely in Connecticut, New York, DC and 11 other markets, cutting HealthSpring from 580 counties to 450, and terminating plans covering ~6% of members. 2025 underwriting loss: $4.57B, up from $1.33B.
So…in the spirit of private school grading, we are resubmitting our homework and going to take credit for our prediction. Turns out the right prediction wasn't "HCSC walks away." It was "HCSC walks away — it'll just cost them $3.3B and two years first."
@qq I guess old Morris Day forgot we have toastmasters meetings.
All of leadership should attend. They are absolutely pathetic at speaking.
@mm who the he-l is in charge of his public speech coaching? That is the id--t.
@mn definitely!!!! DM. OE. MT.
@as M.B
@kv doubtful unless someone writes him a slide. He also only answers stupid canned questions. And he doesn’t answer them well. We shouldn’t expect a CEO to actually think on his feet and speak coherently! Silly us!!
I am sure Maurice will address the failed HealthSpring venture in Monday's Townhall. Ha!
@ac corporate strategy is the darling of leadership and I cannot understand why. They fail at everything but I guess as long as they get a board seat for 6 figures it’s ok.
@OP not able to read . Can you post the article here ?
@as darun sandstorm
Based on objective performance criteria, who are the five lowest-performing people in Corporate Strategy? Initials are fine.
@ac these are not director-level decisions.
Not surprising. Reimbursement got slashed and they didn't make money before. Well done Corporate Strategy. Lets hire some more VP's and Directors
That's the kind of news a company keeps very close until they release it. Hopefully we get more clarity externally but definitely sends a weak, though unsurprising, signal