aetna divestature of PDP to Wellcare

[Spud]

Hi, I noticed Aetna is offering 2 new PDP for 2019 in my market. I trust these will also be included in the spin off of all of their PDP business to WellCare effective 1/1/2019 (because of the FTC requirement to get approval for the CVS/Aetna merger).

Given the new Aetna plans are showing serious competition to the existing and other new plans available in my market, I suspect Aetna simply added the new plans to improve their price of the sale of the Aetna pdp's to WellCare. Let WellCare support them AND see if they can make a dime/break even on the commitment to service/support the new customers with these plans.

Given WellCare has also come to market for 2019 with a new aggressively priced pdp in several markets I expect their goal was at defer as much of the business going to Aetna (if the new business goes to Aetna, i expect it which would raise the closing price of the Aetna sale of their pdp business to WellCare).

Does the consumer win? Maybe if WellCare can both support the significant increase in the size of their customer base and if they can break even/make a dime on these lower premium/fill/refill plans.

Comments on this are appreciated.

 

[Chazm]

Aetna’s pdp’s were in many areas in 2018 and they just stayed the same for 2019. They probably came up with their plan offerings during the summer. Was the deal with CVS in the works yet?

 

[somarco]

Aetna PDP has been in GA for several years but don't recall recommending them much in the past.

Wellcare rode into town here this year with a monthly premium to rival Envision. Both are pegging $14.50 for 2019 with a slight nod to Wellcare for often having lower copay's.

Carriers often do a lot of things that don't make sense. If anyone can figure out why they do the things they do or what the outcome will by my hat is off to them.

About the only thing I can predict with certainty is when they do something incredibly stupid to buy into a market it will come back to bite them in a hurry. The market knows how to punish stupidity.

 

[TwoCents]

I doubt Wellcare will support multiple PDP benefits across plans. Any Aetna members will likely just be rolled over into an existing Wellcare PDP. I could be wrong though since it smacks of "bait and switch."

 

[somarco]

Typically when a carrier assumes a block of business, PDP in this case, new policies with new carrier names do not happen until the end of the calendar year.

Or when the policy terminates mid year due to death, non-payment of premium, etc