OMAHA, Neb. and ST. LOUIS, Jan. 17, 2018 /PRNewswire/ -- 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.
About Mutual of Omaha
Founded in 1909, Mutual of Omaha is a Fortune 500 organization offering a variety of insurance, banking and financial products for individuals, businesses and groups throughout the United States. In the individual market, Mutual is a leader in the Medicare Supplement, life, long-term care, disability and annuity lines. The company also offers a portfolio of employee benefit and retirement solutions. With $8 billion in assets, Mutual of Omaha Bank is a full-service bank providing financial solutions to individuals and businesses across the United States. For more information about Mutual of Omaha, visit www.mutualofomaha.com.
Lumeris serves as a long-term operating partner for organizations that are committed to the transition from volume- to value-based care and delivering extraordinary clinical and financial outcomes. We guide health systems and providers through transitions from volume to value, enabling them to deliver improved and more affordable care across populations—with better outcomes. And, we work collaboratively with payers to align contracts and engage physicians in programs that drive high-quality, cost-effective care with satisfied consumers—and engaged physicians.
An industry recognized leader, Lumeris was awarded 2017 Best in KLAS for Value-Based Care Managed Services for helping clients deliver improved clinical and financial outcomes. This was the second year we received this distinguished award. For the past seven years, Essence Healthcare, Lumeris' premier client with more than 63,000 members in Missouri and Illinois, has received 4.5 to 5 Stars from the Centers for Medicare and Medicaid Services. We enjoy working with all of our clients, delivering these same results and aligning our proven multi-payer, multi-population model with their value-based care vision. For more information, go to www.lumeris.com.
Lisa Chernikoff, 734-678-5513
Mutual of Omaha
Jim Nolan, 402-351-2944
Christopher Currington, 314-770-3723