HealthSpring

Analyst: Paula Wade

Report Summary

HealthSpring, a carrier of Medicare Advantage and Part D plans, is now the largest national carrier whose entire focus is the senior population. With major operations in eleven states, the acquisition-driven company has recently completed its largest purchase to date, that of Baltimore-based Bravo Health, and its leaders are promising to expand its company-owned or exclusively-contracted clinics, in addition to expanding its footprint contiguous to its major market centers. It is actively on the hunt for other regional provider-based MA plans, and is also making a foray into serving those dually eligible for Medicaid and Medicare.

Questions Answered in This Report

HealthSpring's chief differentiator is its reliance on a close network of integrated providers, in some markets backed up by company-owned health centers for HealthSpring members. How has this structure served to boost HealthSpring's revenues and profits so effectively? How does the integrated structure utilize care centers?

HealthSpring has grown to be a leading MA player in its largest markets - usually ranking second only to Humana or United in those markets - because of its strong provider ties and its emphasis on incentive-based contracts with physician groups. Where are HealthSpring's major markets, and how is it expanding from those bases?

HealthSpring's purchase of Bravo practically doubled its Part D membership, and its overall Rx membership. How are the two companies going to be combined and what are the likely changes to product designs?

Primary Research

Analysis of data from HealthLeaders-InterStudy, the Centers for Medicare & Medicaid Services, 10-K filings, Investor briefings, company websites.