Mutual of Omaha Medicare will initiate in 2019 its Medicare Advantage health plan in association with Lumeris Inc. This is a very big step that Mutual of Omaha joined hands with St. Louis Company, to manage the plans of health care. This Omaha based insurer is doing health insurance business as Mutual of Omaha Medicare and is doing this business for over a decade. It also sold Medicare supplement plans right from 1966 and is the source of insurance plans ranking to be the second largest. The enrollment of Medicare supplement plan 2018 is expected to reduce and the sales of Medicare Advantage will see an increase. Medicare supplement is referred to as Medigap and is available through private companies to pay the costs that is not paid or covered by government Medicare that is the Traditional Medicare.
However, now even the Medicare Advantage plans are available through private companies and are alternative to Medicare that is government run, thereby offering traditional coverage and additional benefits. Medicare supplement recipients of Mutual of Omaha Medicare are almost one-fifth and are using the Medicare plans, but even the Medicare Advantage plans are also effective with around one-third. Mutual got out of major individual, small-group and group health insurance by taking apart its network of health care provider between 2001 and 2007.
Lumeris will be setting up new providers network based on its expertise and is ascertained to offer value-based care depending on the medical outcomes rather than each medical service for traditional fees. Lumeris will tap the statistical metropolitan areas, where the new plans may compete for its market share. Lumeris was created by a group of doctors about 10 years ago seeking ways to provide health care. This group started its own drug plan of Medicare Advantage referred as Essence Healthcare in the St. Louis area with around 65,000 members. It has a developed technology selling its medical providers value based model for health care and operates for other companies Medicare Advantage plans.
The Mutual of Omaha Medicare venture will be the broadest and is expected to be most impactful. This project for Lumeris is also beneficial to bring out growth and this will depend on how it is executed, how the markets are receptive to the value-based model and new competition, thus the ways it will meet the federal and state regulators requirements. The two companies expect to be come with new Medicare open enrollment period starting from Oct. 15, 2018 so that the plans will be effective from Jan. 1, 2019.