Seechange Health acquires Central Benefits National Life Insurance company

SeeChange Health, the nation’s only fully-insured, value-based health insurance provider, announced today the acquisition of Central Benefits National Life Insurance, a health and life insurance company based in Westerville, OH. The transaction closed on July 31, 2009.

The acquisition of Central Benefits National Life Insurance Co. will allow SeeChange Health to rapidly expand their fully-insured, value-based products into 25 states in the coming months. The program is expected to launch in California later this year pending final regulatory approval.

“Value-based health care is an innovative approach toward lowering health care costs while at the same time improving the quality of care,” said Janice Rahm, executive vice president of SeeChange Health. “Instead of continuing to shift health care costs from insurer to employer and plan member, our new value-based plans will actually reduce medical claims, because the plans will ultimately improve the health of our members.”

“It has been over 20 years since a new insurance company entered the California market,” said Martin Watson, CEO of SeeChange Health. “We are confident SeeChange Health is uniquely positioned to adjust quickly to both market needs and regulatory changes that may impact the industry.”

About Value-Based Health Care

The problem with health care today is that the current system only focuses on delivering care when treatment options are most costly and outcomes are most limited. The “80/20” rule stipulates that 20% of the insured population accounts for 80% of the health care spent today. By only focusing on the current 20% who are high claimants, we are not managing the 80% who are tomorrow’s high claimants.

Value-based health care, on the other hand, is designed to drive consumer engagement by incenting individuals to access highly-valued preventive care, and value-based insurance companies are able to do this by rewarding participants with richer benefits when compliance criteria (pre-defined health actions) are completed. Compliance examples include:

• Completing a health questionnaire
• Participating in an annual biometric (lab) screening
• Following age, gender and condition specific guidelines

The rewards and incentives for participating in a value-based program include:

• Waiving or reducing copays, deductibles and/or coinsurance
• Reducing health insurance premiums

http://www.seechangehealth.com