Conventry Health Care National MCO Analyzer

Analyst: Paula Wade

Report Summary
Coventry Health Care continues to grow through acquisitions of smaller regional health plans, and is looking for more acquisition targets. It's also working to expand its Medicaid presence and has announced a new suite of national Medicare Part D products with Wal-Mart, Walgreens and Target Stores as network providers. But it faces stiff challenges with healthcare reform, which will inhibit its ability to underwrite and to raise premium rates. 

Questions Answered In This Report
Coventry is strongest in the Midwest, Mid-Atlantic and South, but has substantial market presence in just a dozen mid-sized urban markets. How does Coventry's regional commercial footprint distinguish it from other national carriers?  Where is the company growing/not growing/likely to expand?

Coventry has wanted to grow its Medicaid footprint for many years now, and its leaders still talk about the goal of Medicaid making up 20 percent of the business. What has Coventry done to get closer to that goal? How does its Medicaid strategy tie in with its Commercial market strategy and the creation of the health exchanges?

Coventry had to trim back its Medicare Advantage business in 2009 after cost concerns, and lost Part D members in 2011. What is Coventry's MA and Part D strategy now? How does its new Part D plan manage to offer free generics and no deductible?

Primary Research
Documents and research from HealthLeaders-InterStudy, Citigroup Global Markets, Centers for Medicare & Medicaid Services, Coventry Health Care