Aetna health insurance company has entered an agreement to acquire Coventry Health Care. Coventry is a group and individual medical insurance provider and Medicare Advantage / Medicare Part D provider. The purchasing of Coventry will help Aetna’s managed care growth, something the insurance carriers are focusing on with the advancement of Health Care Reform. Many carriers are sidelining the traditional PPO to focus on ways to offer affordable health coverage through managed care options. Coventry has a good track record for building low cost physician and hospital relationships, which is the key for gaining market share in the coming years. In the future, with coverage expected for all Americans, many individuals and families will not want to pay for expensive PPO’s and will opt for managed care so they can save premium dollars.
Coventry has upward of four million health subscribers and over one million Part D subscribers. Coventry’s current structure will enhance Aetna’s already huge offering of products and plans. Furthermore, Coventry has strong membership in Florida, Georgia, St Louis, Missouri, and Pittsburg, Pennsylvania. One of Coventry’s past weaknesses was operating under so many company names including: Altius, , Cambridge, Carelink, Confident Care, CoventryCares, Coventry Health, Coventry Health Care, Coventry Health and Life, Coventry Summit, First Health, First Health Life, Group Dental Service, Health America, Health Assurance, Health Care USA, MH Net, MH Net Life, Preferred Health Systems, and also WellPath. Now under the Aetna name, hopefully, it will all become Aetna. This will allow for better branding and less confusion.
Aetna’s purchasing of Coventry will allow Coventry to leave its weaknesses in the past and allow the strong aspects of the company to grow. Administrative savings will be huge as Aetna can easily absorb administrative duties and modernize the Coventry system. Aetna insurance is front and center in the battle for health insurance market share. Surely, one would expect more acquisitions as medium sized companies like Coventry may not be able to survive Health Care Reform and the Affordable Care Act. By reading Aetna reviews you can learn more about what Americans think of Aetna insurance.
What will happen to my Coventry Health Insurance?
Currently, Aetna and Coventry have come to no final agreement. However, in the past many insurance companies have bought other insurance companies and left the plans alone. Wellpoint did by UniCare and UniCare did end and members were able to get other plan offerings. Our best advice, is if you currently have Coventry Health Care it may be a good time to shop for additonal health insurance quotes, including Aetna.