Don’t you love reading about these insurance giants? I’ve tried to write about other topics, but end up being attracted to insurance companies again, and again. UnitedHealth, the nation’s largest health insurance company, is poised to grow by about 9%. After all, it operates commercial Medicaid & Medicare Advantage plans via its UnitedHealthcare health insurance and is expanding its medical care provider business across the country under its fast-growing Optum unit. Go ahead, check it out Optum.com. It’s a monopoly. Really, it is.
This prediction was made in December 2019 and the expected income in 2020 Is about $260 to $262 billion. Cash flows from operations are expected to range from $19 to $19.5 billion and revenues are expected to hit $242 billion.
What is United’s competition? CVS Health, which operates drug stores, retail health clinics and larger pharmacy benefit manager, acquired Aetna, nation’s third-largest insurer. Lastly, Cigna also completed its merger with Express Scripts in 2018, a large pharmacy benefit manager. Other rivals? Humana & Anthem. We are all aware of these insurers, after all, they are the big players.
The race here is to see who can gobble up all the doctor practices, clinics, and anything they can get their hands on to control the flow of healthcare in this country.
Do you see the absurdity in this? You build a business to “manage” health care, buy off as many practices & physicians as you are able, control the flow of drugs and to top of it all off, provide health insurance to consumers. What’s left to control? So much more, oh so much more. Big data consolidation is just getting started.
Does this sound like one of those “illegal” drug cartels? Maybe? Couldn’t be, right? This is after all, legal.