Eliminate Managed Care From Your Practice ForeverManaged Care in the Medicare population hasn't gone over too well. It doesn’t have significant penetration into most Long-Term Care markets. Because of that... As unbelievable as that seems, let me assure you it’s true. Even in the high penetration states like California there is still a significant portion of geriatric patients that are straight Medicare. The reason for this is strictly economic. The insurance companies don’t make as much profit on sick seniors as compared to healthier younger customers. Even if a geriatric patient is in a Managed Medicare product, many will cancel their enrollment and go back to straight Medicare if they become chronically ill. The coverage they have isn't helpful with chronic illness, and the insurance companies are glad to have them drop coverage. The future looks equally bright for the lack of significant Managed Medicare as the senior population ages. Once again, this population doesn't represent the “low hanging fruit” for insurance companies. They are much more likely to target the younger healthier populations. I haven’t participated in any Managed Medicare contract (I’m mainly talking capitated programs here) and don’t plan to. There are plenty of straight Medicare patients to go around. Life is too short to deal with Managed Medicare and all their added administrative nonsense. Chronically ill geriatric patients because of their relative high need of medical attention and poor profit potential (for the insurance companies) will continue to provide a haven from Managed Medicare. Astute physicians, like you, who recognize this economic reality are perfectly positioned to benefit.
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