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Integration of health insurance companies
With the pending changes in the healthcare insurance industry and so many healthcare insurance companies being acquired what will be the outcome for the consumer regarding vertical integration of a network for one stop care?(with insurance companies being acquired by drug store companies)
6 answers
Good question. Different strategies have been outlined or rumored to-date. Now that DoJ approves and just waiting on final States to approve, the consumer impact will become more clear during 2019.
Don't expect much if any change in 2019.
Vertical integration is an evolving competitive model attracting national healthcare plans. “CVS Health (CVS)” is a true example wherein CVS functions as a PBM, retailer, insurer and now a “Provider”. The CVS model has offered insurers enhanced market-share leverage, competitive (product) diversification with anticipated improved outcomes, lower medical cost, and engaging the consumer with a variety of “shelf-life” products and services.
Owen B. Ellington, M.D., J.D.
Outcomes for the consumer could be positive with a more seamless experience, medical records more easily shared among providers (less filling out redundant forms) and integration of care. However, it could also lead to less consumer choice. This could come about directly or indirectly via the difficulty of going outside of the integrated (closed) system.
Integrations are mostly done for business goals. Insurance is also more of a business than a patient care thing. More integration shrinks the player and tends to monopoly. For customer its good user experience ( in terms of records and paperwork) but I doubt for the cost.