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Illinois Medicaid Cuts Drive Out Humana, Inc. (HUM) And UnitedHealth Group, (UNH) According To HealthLeaders-InterStudy

10/19/2005 5:13:17 PM

NASHVILLE, Tenn., Oct. 4 /PRNewswire/ -- HealthLeaders-InterStudy, a leading provider of managed care industry intelligence, finds that Humana Inc. and UnitedHealth Group have quietly pulled out of the Illinois managed Medicaid market. According to the latest issue of Illinois Health Plan Analysis from HealthLeaders-InterStudy, severe cuts in Medicaid reimbursement are making it more difficult for any health plan to offer a managed Medicaid product in Illinois.

"Medicaid in Illinois is highly politicized," said Rick Byrne, HealthLeaders-InterStudy analyst. "Though a study recommended expanding managed care in the state's Medicaid program, the legislature instead cut reimbursements. Managed care could show some real cost savings if allowed to operate properly, but I don't see that as a realistic possibility in the near future."

Unlike many states, Illinois does not assist in membership enrollment, leaving the entire cost to the managed care plans. The resulting high marketing costs and low enrollments make it difficult for the health plans to operate efficiently.

Other health plan news in Illinois: -- Health plans are expected to show significant increases in their marketing and advertising spending in the next year, as they push their new Medicare plans. -- A recent survey by Great-West Healthcare revealed that consumers still have little idea of how much healthcare services cost, making it harder for health plans to tout the cost savings of their consumer- driven products. -- Two plans new to Illinois, WellCare and HealthSpring, are taking advantage of the buzz around Medicare Part D to start Medicare HMOs in the state. About HealthLeaders-InterStudy

HealthLeaders-InterStudy, a company of Decision Resources, Inc. (, is the authoritative source for managed care data, analysis, and news. For more information, please visit

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

For more information, contact: Alex Jablokow Decision Resources 781-296-2562

Decision Resources, Inc.

CONTACT: Alex Jablokow of Decision Resources, +1-781-296-2562,

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