United, Humana Win With Medicare Benefit (AP)

By KEVIN FREKING, Associated Press Writer

WASHINGTON - United HealthCare and Humana are the biggest winners among insurers offering the new Medicare drug benefit, according to enrollment numbers released Friday.

While about 90 companies are administering more than 3,000 private plans around the country, enrollment is heavily concentrated in just a handful of companies, according to the Centers for Medicare and Medicaid Services.

United HealthCare, which has a joint marketing relationship with AARP, was a clear No. 1. It obtained 27 percent of the enrollment in stand-alone drug plans, or 3.8 million enrollees. It also led among the Medicare Advantage offerings with 20 percent of the market share, or 1.2 million enrollees. The Medicare Advantage offerings operate like an HMO where consumers get comprehensive health care coverage, rather than just prescription drug coverage.

Humana Inc. was the only other insurer capturing a double-digit share of the market. About 2.4 million beneficiaries enrolled in Humana plans, or 18 percent of total enrollment so far. Humana was also third in the Medicare Advantage offerings, with about 800,000 enrollees, or 13 percent.

Dan Mendelson, president of Avalere Health, a consulting firm, said the companies with the largest enrollment numbers early on will have a big advantage going into the second year.

Mendelson said the partnership with AARP was a huge boost for United Health Care.

"Their offering is pretty mainstream honestly, but they come in with very solid name recognition both from AARP and from their local managed care presence," Mendelson said. "They are the largest managed care company in the country."

Mendelson said Humana Inc. distinguished itself by offering low premiums. In some regions, those premiums were as low as $1.87 a month, attracting beneficiaries who had low drug costs.

"Humana came in with a very innovative set of offerings," Mendelson said.