Aetna bets on Obamacare

Today, Aetna, the third-largest U.S. health plan, agreed to buy Coventry Health Care for $5.6 billion.  Aetna paid a 20 percent premium for Coventry.  Why is Coventry such an attractive target? The answer is that President Obama’s Health Reform will greatly expand the number of people eligilbe for Medicaid.  Since many states are moving towards…

HEALTH REFORM UPHELD

Today the Supreme Court upheld the large majority of Affordable Care Act (a.k.a., Health Reform, ObamaCare, ACA) including the individual mandate. Why was the individual mandate allowed to remain in the law?  According to Justice Ginsburg and others, it is a form of a tax. “Justice Ginsburg makes clear that the vote is 5-4 on…

How to drop the individual mandate and avoid the collapse of the private health insurance market

Today, the Supreme Court is deciding  whether to let many of the provisions of the Affordable Care Act (a.k.a. ACA, a.k.a. Health Reform, a.k.a. Obamacare) stand.  One of the key provisions is the individual mandate.  The individual mandate requires all individuals to purchase health insurance.  If you don’t buy health insurance, you must pay a…

Accountable Care Organizations: Update on Medicare Implementation

Health Reform’s Accountable Care Act (ACA) mandates the creation of Accountable Care Organizations (ACOs).  Dartmouth researcher Elliott Fisher stimulating much of the interest in ACOs by introducing the concept of an “extended hospital medical staff” at a 2006 meeting of the Medicare Payment Advisory Commission (MedPAC). Today, I review an article by Berenson and Burton (2011) describing…