Cigna to buy HealthSpring for 3.8 Billion

October 24, 2011

Big news in the Medicare market today…

Cigna and Healthspring announced that Cigna will pay around $3.8 billion to buy HealthSpring in a deal that is expected to close in the first half of 2012. In the agreement approved by both companies’ board of directors, Cigna will pay $55 per share in cash for the Nashville, Tennessee based company. Cigna representatives said that the price represents a 37% premium over Friday’s closing price of $40.16.

“HealthSpring is a great fit with Cigna’s growth plans to expand into the Seniors and Medicare segment through a premier business and trusted brand name,” said David M. Cordani, President and Chief Executive Officer. “Our two companies share a common strategic vision and philosophy that we create customer value by partnering with health care professionals, and use information and incentives to deliver high-quality, differentiated programs.”

I’m sure each company will release more information in the coming days.  Typically, everything will stay “business as usual” until the buyout is complete.  I assume that will be the case with HealthSpring’s Medicare Advantage Plans and Cigna’s Part D Plans.

Read the full story here.


How to Order Your 2012 Medicare Advantage Enrollment Kits

October 12, 2011

We recently sent out several email blasts letting agents know how to pre-order enrollment kits. Below are links to those emails for companies that have provided their order procedure details. Carriers continue to provide us with information.  Be sure to check back for updates.

To view these emails you must be subscribed to our mailing list.  If you are not currently subscribed, Subscribe Today!  We do not share or sell our lists. Once you click subscribe, enter your email address, check your mail and click reply to be activated.

Aetna

Arcadian

Anthem

Coventry

HealthSpring/Bravo

Humana

UnitedHealthcare

WellCare

Windsor/Sterling


Check the Status of Your Medicare Advantage and Medicare Part D Enrollments

December 30, 2010

As the Medicare Advantage Annual Enrollment Period (AEP) draws to a close, it is vital that you review all of your submitted enrollments to ensure that they were received and are being processed correctly. Below we have provided information for each of the companies on how to check the status of your enrollments:

America’s 1st Choice

To check the status of enrollments, you will need to contact Agent Support at 877-877-0539

Anthem/WellPoint

Please refer to the Excel spreadsheets that we have been emailing out over the past few weeks. If you have any questions, you can contact our enrollment team at 800-962-4693 ext: 243

Care Improvement Plus

Please contact Care Improvement Plus Sales Support at 1-800-711-1656 to check on the status of enrollment applications.

Cigna

  1. Go to CIGNAMedicare.com and click on the “Producers” link
  2. Log in using your assigned username and password. If you need this information, please contact us at 800-962-4693
  3. In the section titled “Compare Plans & Enroll Online”, click on “Compare Plans-2011”
  4. Click “Accept”
  5. Log in again using the same information that you used to access the CIGNAwebsite
  6. On the right hand side, you will see “Search Your Enrollments”. Enter the required information and select “Search”

Coventry

  1. The Application Tracker System can be accessed through the Coventry Broker portal at Coventry-Medicare.com.
  2. Once logged in, you will see App Tracker is an easy-to-use online tool for you to check application status, review your commission payments, run reports and more. Click Here  
  3. Once you select the link from the broker portal for App Tracker, you will be transferred to the log in screen where you enter your AWN and password.

NOTE: For “first time users”, agents will enter your AWN as your User ID. Enter Password – the word Coventry and the last 4 digits of your Social Security Number. Example: Coventy1111

  1. Once logged in, you will be taken to the App Tracker Home Screen where you can set the parameters for your search. The required fields will be highlighted.
  2. When a pie chart graph is generated for a report you can click on any portion of the chart to generate its’ respective report. Reports can be exported in Excel, PDF or CSV formats.

If you have any questions or need help using App Tracker, you can contact Coventry’s Broker Support Unit at 866-714-9301.

HealthSpring

Agents will be able to view copies of their applications in an online system called FileBound. Applications will not be able to be viewed immediately. Applications are only able to be viewed once they are processed by our Enrollment department, and during times of heavy volume, this may take three or four days. 

  1. You can access FileBound at: https://healthspring.filebound.com/v5/
  2. Your username is your Agent ID without the dash (for example XY0123)
  3. Your password has been previously sent to you. All existing agents received the password in an email sent to all agents on November 15, 2010. All new agents received it shortly after receiving your Agent ID. You will be asked to change your password the first time you access the system
  4. When asked to change it, please create a password that meets the following guidelines:
    1. Password must be a minimum of eight characters long
    2. Password cannot contain any part of your Agent ID
    3. Password must contain at least two letters, and one must be a capital letter
    4. Password must contain at least two numbers.
  5. If you are unable to change your password or otherwise unable to access FileBound, please contact the HealthSpring Technical Support Help Desk at 866-780-8553. If the Help Desk is unable to assist in finding a solution, they will escalate it to our vendor to contact you with an answer. You can also contact David Smith at david.smith@healthspring.com
  6. Once you access FileBound, you will be able to search and view all of the applications you have submitted from November 15, 2010 forward.
  7. After you login each time, you will be taken to the Select Project page. Please click on the available project that corresponds to your state (Alabama/Texas or Tennessee/Illinois). 
  8. You will then be taken to the Home page. Click on the Search tab (with the little binoculars) to go to the Search page (once you get there it will say Search in the top left corner). The Home page and the Search page look very similar, but you cannot search from the Home page. Make sure you are searching from the page that says “Search” in the upper left corner.
  9. Then, key in your Agent ID into the Sales Agent field and click search at the bottom of the page. You should be able to see all of your sales.

If you search for an application and do not see it six days after submitting it, please send an email to david.smith@healthspring.com, and please include your name, AgentID, and phone number. They will research it at that point to see if they can find it.

Humana

  1. Go to http://www.humana.com/agents/.
  2. If you have not registered on the agent portal website you will need to do so.  At the top of the page there will be a hyperlink in blue “register”.  Click on this word and register your agent number.
  3. If you have already registered – click on the “Login” link located at the top of the page and login.
  4. Click on the “Medicare Agent Workbench” link located at the bottom of the page – should be right beside a picture of two people.  This will take you to a new page. 
  5. “Track Applications and Enrollments” is the first category on the page.  Click on “ Enter Search Tool”.
  6. You will then be taken to a page where you can enter search criteria to search enrollments.
  7. The best way to search is by using “Signature Date” – enter a beginning signature date and use today’s date for the ending signature date.  Leave all of the other fields as they are.
  8. Then go to “Member State” and select your state or the state where your enrollments were written.
  9. Then Click “Request Report”. 
If you need assistance or cannot locate some of your applications, you can contact Humana Agent Support at 800-309-3163.  

Sterling Health Plans

To verify Sterling enrollments, please contact their Agency Support Desk at 888-268-9658. They will be open 9:00 am – 8:00 pm EST, Monday – Friday.

Universal American

  1. Log into the Medicare Prescription Drug Agent Website at http://www.uafcinfopdp.com/
  2. Under Report Menu click Production
  3. Enter the required information and select Search. You can choose to either view the report on your computer screen (Screen View) or in an Excel spreadsheet

If you have any questions, please contact Agent Sales Support at 866-316-6051

United HealthCare

  1. Go to http://www.unitedhealthproducers.com/ and log in with your username and password.
  2. Click on tab titled Applications & Enrollments then click on the Applicant Search tab
  3. Under applicant search you are able to search applicants by date received, sate, or applicant name.
  4. To view a complete list of all enrollments submitted you may search by sate.  If you have written over 100 enrollments, it is best to search your clients by applicant name. 
  5. When searching, you will be able to click on individual clients and view selected demographics and issued policy information

If you need assistance you can contact the Producer Help Desk at 888-381-8581.

Universal HealthCare

  1. To access the Agent/Broker Portal, go to http://www.univhc.com/ and select ‘Login’ under the Agents and Agencies Heading.
  2. Login to the site or Register if you are a new user. You will need to make sure that you select the ‘Agent’ radio button before submitting your username and password.
  3. This will redirect you to the Agent Home Page. You will need to select the Enrollment tab at the top of the page.
  4. Enter the required information and select Search.

If you have any questions, please contact Universal HealthCare Agent Support at 866-616-6396.


End of AEP – Medicare Advantage and Medicare Part D Enrollment Submission Guidelines

December 30, 2010

As we approach the final days of the Medicare Advantage Annual Enrollment Period (AEP), we want to ensure that agents are aware of the enrollment deadlines and procedures for each company. It is critical that you adhere to these deadlines to make certain that your applications are processed correctly for a January 1, 2011 effective date.

Below you will find the deadlines and instructions for submitting enrollment applications for each company:

Anthem –

  • Faxed enrollments must be submitted by 11:59pm local time based on the enrollee’s time zone.  Agents need to keep fax confirmations that include a date/time stamp.  If you are contracted through us (Integrated Benefits, Inc.) for Anthem, enrollments must be faxed to this number:  1-866-399-5161

Care Improvement Plus –

  • Faxed and online applications must be received by midnight EST on December 31st. Paper enrollment forms and disenrollment requests received via U.S. Mail delivery on Monday, January 3, 2011, regardless of U.S. Postal Service postmark, may be considered “received” on Friday, December 31, 2010. Paper enrollment forms and disenrollment requests received Tuesday, January 4, 2011, through Friday, January 7, 2011, with a U.S. Postal Service postmark on or before December 31, 2010, may be accepted. AEP requests received in the mail after January 7, 2011, regardless of postmark, must be denied.
  • Fax: 866-686-2508
  • Mail: PO Box 691350, San Antonio, TX 78269

Cigna –

  • Part D apps must be faxed to CIGNA by 11:59 pm (local time) on December 31st
  • Fax to: 1-800-735-1469

Coventry –

  • Medicare Advantage and Part D applications and disenrollment requests must be received at Coventry by 11:59 pm local time on December 31st
  • Fax: For Coventry Part D, Fax to: 1-866-415-2232; For CCP Mail and Fax information click here
  • Mail: Paper enrollment forms and disenrollment requests received via U.S. Mail delivery on January 3 regardless of U.S. Postal Service postmark, may be considered “received” on Friday, December 31, 2010, and thus accepted as AEP elections. Paper enrollment forms and disenrollment requests received January 4 through January 7, with a U.S. Postal Service postmark on or before December 31, 2010, may be accepted and considered received on the postmarked date.

Freedom Health/Optimum HealthCare/America’s 1st Choice –

  • The Plan strongly recommends you continue to fax enrollments on a daily basis to adhere to application timeline standards and will process your applications from the faxed copy.  However, CMS guidance states the processing of paper enrollments and dis-enrollments that were written on or before 12/31/2010 have a USPS postmark of the same date. Therefore, it is also recommended that the original applications be mailed no later than 12/31/2010 with a 12/31/2010 post mark should the paper application be necessary. Please be aware that CMS guidelines prohibit the plan from accepting any enrollments or disenrollments past January 7th regardless of postmark.
  • Fax: 866-254-2254 or emergency back up to 813-506-6151

Health Spring –

  • The cutoff date for January 1st effectives via fax will be 11:59 PM (local time) on Friday, December 31st. For mailed applications, they will accept them until January 7th as long as the envelope is postmarked by December 31st.
  • Fax: Fax numbers are state specific:

Alabama – (877) 818-8162 • Florida – (877) 818-8162

Georgia – (877) 818-9299 • Illinois – (877) 818-9225

Mississippi – (877) 818-8162 • Tennessee – (877) 818-9299

Texas – (877) 818-8163

Humana –

  • Paper applications must be in the agent’s possession on December 31st and signed and dated by the enrollee no later than December 31st to be considered for a January 2011 plan effective date. Agents must make every effort to mail or fax the applications by December 31st.
    * All applications must have an enrollee signature no later than Dec. 31st
    * Non postmarked applications will be processed up until January 3rd
    * Postmarked applications will be processed up until January 7th
  • Fax: 877-889-9936
  • Mail: ACS
    c/o Humana Medicare Enrollment
    2432 Fortune Drive
    Lexington, KY 40512-4309

Sterling –

  • Online apps can be keyed into the enrollment system until midnight (Pacific time) on 12/31/10
  • Mail : All paper applications and disenrollment requests received via U.S. Mail delivery on Monday, January 3, 2011, regardless of U.S. Postal Service postmark, may be considered “received” on Friday, December 31, 2010, and thus accepted as AEP elections. Paper enrollment forms and disenrollment requests received Tuesday, January 4, 2011, through Friday, January 7, 2011, with a U.S. Postal Service postmark on or before December 31, 2010, may be accepted and considered received on the postmarked date. AEP requests received in the mail after January 7, 2011, regardless of postmark, must be denied.

Universal American –

  • Online: PDP applications to be submitted online must be input into AgentLink by December 31, 2010 at midnight (local time zone). Fax the AgentLink Cover Sheet, original PDP enrollment form and all applicable paperwork to 1-866-417-5194. (Paper enrollments and applicable paperwork must also be received by December 31, 2010.)
  • Fax: All original PDP paper enrollments and applicable paperwork submitted via DirectFax must be received by December 31, 2010 (midnight, local time zone). DirectFax PDP plan enrollment requests should be sent to:  1-866-635-3177

United HealthCare –

  • The deadline for Annual Election Period (AEP) enrollment applications and disenrollment requests is end-of-day on December 31, 2010. This includes all electronic and fax applications. PDP Paper Enrollment Applications must be postmarked on or before December 31, 2010 and will be accepted January 4-7, 2011. PDP Paper enrollment applications for the Annual Election Period received in the mail after January 8, 2011, regardless of postmark, will be denied.
  • Click here for Fax and Mail information.  These instructions apply to agents contracted through Integrated Benefits, Inc.

Universal Health Care -

  • Universal Health Care will accept Enrollment Applications that are dated on or before 12/31/2010, until 1/6/2011. 1/6/2011 is the absolute last day that we can receive Enrollment Applications for a 1/1/2011 effective date
  • Fax: Fax the Universal Enrollment Fax/Application Log Sheet and the entire application (with any necessary attachments) to one of the following numbers:

(727)497-5730 • (727)-497-5731 • (727)-497-5732

Then mail the entire application to Universal Health Care

  • Mail: Enrollment applications with the Scope of Appointment form (if telephonic scope process was used, make sure the Scope ID number is filled in on the Enrollment Application) may be sent via a mail tracking system – within 48 hours of signature to:

Universal Health Care

Enrollment Department

100 Central Avenue

St. Petersburg, FL 33701 

We appreciate all of your hard work during this AEP and look forward to working with you in the future. Happy New Year!


HealthSpring Completes Acquisition of Bravo Health

December 6, 2010

HealthSpring announced last week that they completed the purchase of Bravo Health plans.  This acquisition will create the nation’s largest company that focuses exclusively on the Medicare Advantage population, according to HealthSpring CEO Herb Fritch.  In my opinion,  HeathSpring will leverage Bravo’s “best practices” and allow them to offer a better-end product to their membership.  Hopefully this acquisition will also allow/encourage HealthSpring to expand into more markets for 2012.  It’s a win-win for beneficiaries and agents.

Here is a link to a Fox Business article that was written when the acquisition was orignally announced back in August.

Below is HealthSpring’s press release on completing the purchase.

HealthSpring, Inc. Completes Acquisition of Bravo Health, Inc.

Company also Announces Addition of Jeffrey Folick to Board of Directors

NASHVILLE, Tenn., Nov 30, 2010 (BUSINESS WIRE) –

HealthSpring, Inc. (NYSE:HS) today announced that it has completed the previously announced acquisition of Bravo Health, Inc., an operator of Medicare Advantage coordinated care plans in Pennsylvania, the Mid-Atlantic region, and Texas, and Medicare Part D stand-alone prescription drug plans in 43 states and the District of Columbia.

HealthSpring acquired Bravo Health, a privately held company, for approximately $545.0 million in cash. The transaction was funded by the use of cash on hand and borrowings under an amended revolving credit and new term loan facility. As amended, the facility consists of the following:

  • $355 million in term loan A indebtedness maturing in February 2015 comprised of:
    • $175 million of term loan A indebtedness ($166 million of which was outstanding prior to the acquisition);
    • $180 million of new term loan A indebtedness (funded at the closing of the acquisition);
  • $175 million revolving credit facility maturing in February 2014 ($100 million of which was drawn at closing); and
  • $200 million of new term loan B indebtedness maturing in November 2016 (funded at closing).

Outstanding loans under the new credit facility bear interest at a spread over LIBOR (initially 375 basis points for term loan A and revolver indebtedness and 450 basis points for term loan B indebtedness), which spread changes depending on the Company’s total leverage ratio. With respect to the term loan B indebtedness, the terms of the facility include a contractual minimum LIBOR of 1.5%.

HealthSpring expects the Bravo Health acquisition to be immediately accretive to earnings, after accounting for expenses related to the transaction in the 2010 fourth quarter. Except for such expenses, HealthSpring’s previous financial guidance for the year ending December 31, 2010, excludes any impact on earnings from Bravo Health operations.

HealthSpring also announced that Jeffrey Folick, the former chairman and chief executive officer of Bravo Health, has joined its Board of Directors. Since 2006, Mr. Folick had been the chairman and chief executive officer of Bravo Health. For over twenty years prior to 2006, he served in various executive roles for a number of different managed care organizations, including Health Net, Inc. and PacifiCare Health Systems.

“I am pleased that Jeff has accepted our invitation to join the HealthSpring Board following the completion of our acquisition of Bravo Health,” said Herbert A. Fritch, Chairman of the Board and Chief Executive Officer of HealthSpring. “I have known Jeff for more than 20 years, and his extensive background in managed care operations will be of tremendous value as we integrate Bravo Health and as we address the challenges of health insurance reform. I know we will greatly benefit from his continued service to our combined organizations.”

About HealthSpring

HealthSpring is based in Nashville, TN, and is one of the country’s largest Medicare Advantage coordinated care plans. HealthSpring currently owns and operates Medicare Advantage plans in Alabama, Delaware, Florida, Georgia, Illinois, Maryland, Mississippi, New Jersey, Pennsylvania, Tennessee, Texas, and Washington, D.C. and also offers a national stand-alone Medicare prescription drug plan. For more information, visit www.healthspring.com. Media information is available at HealthSpring’s press site: http://press.healthspring.com.

Cautionary Statement Regarding Forward Looking Statements

Statements contained in this release that are not historical fact are forward-looking statements, which the Company intends to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend on or refer to future events or conditions, or that include words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions are forward-looking statements. Such statements include statements regarding the expenses associated with the transaction and the accretion to HealthSpring’s projected earnings. The Company cautions that forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause its actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Any forward-looking information in this release or made orally and related thereto are based on management’s beliefs and assumptions and on information available to HealthSpring at the time the statements were or are made, which is subject to change. Although any forward-looking information and the factors influencing them will likely change, HealthSpring will not necessarily update the information except as required by law, as HealthSpring will only provide guidance at certain points during the year. Information contained herein speaks only as of the date of this release.

The following factors, among others, could cause actual results to differ materially from those in the forward-looking statements: risks and uncertainties associated with the regulatory approval process; HealthSpring’s lack of prior experience in Bravo Health’s service areas; and HealthSpring’s ability to manage and integrate successfully the operations of Bravo Healthpost-acquisition, achieve operating efficiencies, and maintain and grow membership as anticipated. The foregoing list of factors is not intended to be exhaustive. Additional information concerning these and other important risks and uncertainties can be found under the headings “Special Note Regarding Forward-Looking Statements” and “Item 1A. – Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, and in other public filings by the Company.

SOURCE: HealthSpring, Inc.

 


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