With the state lawmakers busy debating about the impact of New York’s Medicaid transformation, Elevance Health, a key insurance provider company is slowly expanding its business by sealing deals with major players of the healthcare industry. During the initial start of this year, Elevance Health in a filing with the SEC disclosed that it is planning to close a deal with Centers Plan for Healthy Living, a Medicaid long-term care plan in New York. 

The agreement also stated that the tie-up between Elevance Health Medicaid NY will bring optimistic growth in the entire healthcare industry of New York. The NY healthcare industry is experiencing a high service for Medicaid spending for long-term in-house services. The reports further include that the acquisition announcement was already revealed and was in talks back in the 2023 annual report sent to the SEC filing. The report stated that:

On December 31, 2023, we made a deal to acquire Centers Plan for Healthy Living LLC and Centers for Specialty Care Group IPA, LLC (“Centers”). The acquisition is projected to be completed in the third quarter of 2024, pending standard closing requirements and approvals.

Empire Center, an independent think tank based in New York, stated that the agreement signifies the Elevance Health Medicaid NY acquisition. Still, no specific purchase price was mentioned in the document. The acquisition will result in Elevance Health undertaking the responsibility of providing healthcare to 38% of New York’s Medicaid recipients, which totals up to 110,000 individuals.

Scrutiny of New York’s Managed Long-Term Care Plans Increases as Medicaid Costs Rise

The most recent report relating to the ongoing acquisition revealed that Managed long-term care plans falling under the healthcare industry acted as intermediaries in New York’s Centers Plan for Healthy Living. This Managed Care organization focuses on targeting a specific group of older or disabled individuals who reside in settings other than nursing homes. The state gives a monthly fee to the plans for every member, and the plans are responsible for handling the expenses of their members’ mainly home-based services. New York has the highest per capita spending on Medicaid home care among all states, with costs and enrollment increasing quickly over the past ten years, leading to debates in Albany.

During private discussions about the delayed state budget, Governor Hochul and legislative leaders of the healthcare industry are negotiating different ideas to control the $18.5 billion program, such as tightening regulations for managed long-term care plans. Certain legislators have suggested getting rid of those plans entirely. 

It is still unknown which, if at all, of these cost-saving measures will be implemented. Elevance, previously named Anthem, joined the home-care market in New York three years ago through the purchase of Integra, the state’s leading managed long-term care plan at the time. As of March, 57,000 people were enrolled in the plan, which is currently called Anthem Blue Cross and Blue Shield Health Plus.

The Centers Plan for Healthy Living, which has 53,000 members, is a division of Centers Health Care, a network that offers services for seniors and individuals with disabilities in multiple states. This includes 38 nursing homes in New York, along with assisted living facilities and home-care agencies in the healthcare industry.

Elevance Health Medicaid NY Strengthening Its Market Position 

The purchase of Centers Plan for Healthy Living by Elevance Health Medicaid NY strengthens its position and services in the New York Medicaid market. The Centers Plan for Healthy Living successfully obtained a significant $16 billion agreement from the state to manage long-term care services from 2022 to 2026, underscoring its importance in the industry. At the same time, Elevance Health Medicaid NY secured a $13 billion deal for the identical period, as reported by the Empire Center.

This deal represents another significant achievement in Elevance Health’s expansion journey in the healthcare industry after acquiring Integra Managed Care, a well-known New York-managed long-term care plan, in 2021. In addition, Elevance Health has shown a tendency to grow its range by purchasing numerous specialty care companies in the last few years, solidifying its position as a major player in the healthcare industry.

Impact of New York Medicaid transformation on Elevance Health Medicaid NY

Essentially, the acquisition of the Centers Plan for Healthy Living by Elevance Health Medicaid NY shows great potential for the future of managed care in New York. The impact of New York Medicaid transformation has a beneficial impact across the healthcare industry. These healthcare leaders are ready to transform the way care is provided and patient results are improved in the Medicaid industry by utilizing their combined knowledge, assets, and creativity. 

As regulatory procedures progress and operations are combined, stakeholders can expect a transformative experience with improved access, quality, and efficiency in Medicaid services across the healthcare industry. This partnership showcases the Elevance Health Medicaid NY, strong dedication to promoting positive transformation and building a healthier, more sustainable future for Medicaid recipients throughout the state.

Final Thoughts 

This was all about how Elevance Health acquisitions for the Centers Plans for Healthy Living are transforming the way the Medicaid New York plans work in the healthcare industry.

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FAQs

• What is the impact of New York Medicaid transformation on acquisition by Elevance Health?

Ans. Now York Medicaid is expected to have a positive impact with the acquisition by Elevance Health. It is expecting its ability to increase in providing more high-quality, efficient care. Also, with the acquisition of the Centers Plan for Healthy Living, Elevance Health is focusing on improving the accessibility and better health treatment to the undergoing Medicaid recipients.

• How does Elevance Health Medicaid NY plan to address the rising costs of the acquisition of New York Medicaid?

Ans. To address the rising cost of New York Medicaid, Elevance Health Medicaid NY aims to combine the expertise with the services of the Centers Plan for Healthy Living. As a result, the operational efficiency will be enhanced, and the patients undergoing any medical treatments will receive cost-effective and high-quality home-based long-term care.

• What are the benefits of Elevance Health Medicaid NY’s acquisition of Centers Plan for Healthy Living?

Ans. The acquisition and closing of the deal will strengthen Elevance Health Medicaid NY’s market position. This will result in providing better-coordinated care and innovative solutions. Leading to improved patient outcomes and a more sustainable Medicaid program in New York.