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Anthem Ties Up With Walmart to Better Serve Medicare Members
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In an effort to better serve its Medicare members, Anthem Inc. has tied up with Walmart. This collaboration will allow more than a million Medicare enrollees of the former to buy drugs over the counter across 4700 Walmart stores.
The agreement, effective January 2019, will permit Anthem’s Medicare Advantage (MA) members to purchase OTC medications and health-related items such as, first aid supplies, support braces and pain relievers from Walmart’s 4,700 stores as well as online at Walmart.com. With improving access to these items, the agreement will automatically reduce out-of-pocket costs such plan participants. Out of pocket expenses for medical care are those expense that are not reimbursed by insurance. These include deductibles, coinsurance and copayments for covered services plus all costs for services, which are notcovered.
In recent years, high out-of-pocket costs have prevented the patient population from seeking medical services causing unsuccessful patient outcomes. This has induced increasing costs but inadequate healthcare. Walmart asserts that 90% Americans live within 10 miles of its outlets, providing great convenience to members buying drugs. The members have been given extra frills for availing of free two-day shipping on OTC medication basis if the bill exceeds $35.
The tie-up is expected to lower the medical care cost for Anthem and will also be easy on the pockets of its MA members.
This deal is built on the company’s strong growth in its MA business, which it has achieved through a combination of organic and inorganic measures. The acquisition of HealthSun in late 2017 and America First Choice earlier this year has consolidated its MA business.
In a year's time, the stock has surged 35%, almost in line with the industry's growth of 34%.
The partnership should help the company attract more MA members. MA — a plan for senior citizens — creates a market with great growth potential on the back of huge demand from the increasing strength of baby boomer population that touches the retirement age daily. Medicare Advantage as the name implies, provides better health benefits and add-ons than the traditional government run Medicare. Thus, this plan remains much sought after by the seniors. Big players, namely UnitedHealth Group Inc. (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Aetna Inc. serve large number of MA enrollees.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Anthem Ties Up With Walmart to Better Serve Medicare Members
In an effort to better serve its Medicare members, Anthem Inc. has tied up with Walmart. This collaboration will allow more than a million Medicare enrollees of the former to buy drugs over the counter across 4700 Walmart stores.
The agreement, effective January 2019, will permit Anthem’s Medicare Advantage (MA) members to purchase OTC medications and health-related items such as, first aid supplies, support braces and pain relievers from Walmart’s 4,700 stores as well as online at Walmart.com. With improving access to these items, the agreement will automatically reduce out-of-pocket costs such plan participants. Out of pocket expenses for medical care are those expense that are not reimbursed by insurance. These include deductibles, coinsurance and copayments for covered services plus all costs for services, which are notcovered.
In recent years, high out-of-pocket costs have prevented the patient population from seeking medical services causing unsuccessful patient outcomes. This has induced increasing costs but inadequate healthcare.
Walmart asserts that 90% Americans live within 10 miles of its outlets, providing great convenience to members buying drugs. The members have been given extra frills for availing of free two-day shipping on OTC medication basis if the bill exceeds $35.
The tie-up is expected to lower the medical care cost for Anthem and will also be easy on the pockets of its MA members.
This deal is built on the company’s strong growth in its MA business, which it has achieved through a combination of organic and inorganic measures. The acquisition of HealthSun in late 2017 and America First Choice earlier this year has consolidated its MA business.
In a year's time, the stock has surged 35%, almost in line with the industry's growth of 34%.
The partnership should help the company attract more MA members. MA — a plan for senior citizens — creates a market with great growth potential on the back of huge demand from the increasing strength of baby boomer population that touches the retirement age daily. Medicare Advantage as the name implies, provides better health benefits and add-ons than the traditional government run Medicare. Thus, this plan remains much sought after by the seniors. Big players, namely UnitedHealth Group Inc. (UNH - Free Report) , Humana Inc. (HUM - Free Report) and Aetna Inc. serve large number of MA enrollees.
Anthem carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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