Mutual of Omaha today announced its entry into the Medicare Advantage market through a strategic alliance with Lumeris, an industry leader in delivering value-based health care solutions.
Beginning in 2019, Mutual and Lumeris plan to offer a Medicare Advantage plan with prescription drug coverage in select markets. The multi-year agreement between Mutual and Lumeris will create Medicare Advantage plans across the country to provide high-quality and efficient care for Mutual Medicare Advantage customers.
According to the Kaiser Family Foundation, one in three people with Medicare are currently enrolled in a Medicare Advantage plan, and by 2027 that number is expected to climb to 41 percent.
“Our entrance into the Medicare Advantage market represents a significant step forward for Mutual of Omaha as we strive to respond to customer needs and offer a meaningful suite of senior health solutions,” said Mutual Chairman and CEO James Blackledge. “We’re confident that our collaboration with Lumeris will lead to better health outcomes for our Medicare Advantage customers.”
Lumeris, a pioneer in enabling collaborative relationships between payers, providers and consumers, earned recognition as the Best in KLAS leader in Value-Based Care Managed Services for 2015/2016 and 2017. The company has over 10 years of experience with Medicare Advantage plans and has developed a highly successful, collaborative payer model that consistently delivers better clinical outcomes for patients. The first-of-its kind, value-based model emphasizes the wellness of patients and the pursuit of better health outcomes, lower costs, improved patient experience and physician satisfaction.
“Our new initiative with Mutual of Omaha is exciting because it enables both of our companies to build on our successes, while remaining laser-focused on what matters most—delivering the highest quality care to seniors,” said Lumeris Chairman and CEO Mike Long. “This new partnership also leverages each company’s unique strengths to benefit the larger health care ecosystem. Together, we will make a deeper, more meaningful difference in the lives of patients and providers.”
Blackledge said the alliance will further solidify Mutual of Omaha’s leadership in the senior health market. “Mutual of Omaha was one of the first providers of Medicare Supplement plans, and we intend to continue to meet the changing health care-related needs of seniors. By entering the Medicare Advantage market with Lumeris’ proven value-based care model, we will be able to offer our senior customers a full array of solutions.”
Under the terms of the strategic operating agreement, Mutual of Omaha will own and carry the name of the new Medicare Advantage plans and provide brand, marketing and distribution expertise and capital. Lumeris will work as a strategic operating partner to help evaluate markets, establish networks, align with providers and administer plans. An Executive Steering Committee comprised of Mutual and Lumeris representatives will provide oversight and governance of the plans. In addition, Blackledge has joined the Lumeris board of directors.
Medicare Advantage plans rely on private companies to provide Medicare benefits that are traditionally provided by the government. Most Medicare Advantage plans employ a managed care model and offer additional benefits not traditionally covered by Medicare Parts A and B, including prescription drug coverage.