Dive Brief:
- The choice by America's Health Insurance Plans to bring on former CMS administrator Marilyn Tavenner as the group's new CEO shows that it has embraced the Affordable Care Act and sees high value in having a government insider onboard to help guide the industry's development, Modern Healthcare reports.
- AHIP had previously "played both sides of the fence," the publication notes. Under former CEO Karen Ignagni, AHIP supported the ACA's key insurance provisions, but also fought against provisions that impacted profits, including medical-loss ratios and Medicare Advantage cuts, and it funded the U.S. Chamber of Commerce's efforts to oppose the law.
- AHIP's choice also indicates that it has accepted the ACA as a permanent fixture, following the SCOTUS ruling last month that upheld subsidies.
Dive Insight:
Tavenner's selection appears aimed at helping health plans adapt to the new post-ACA industry landscape.
"The ACA is now business, whereas during its passage, it was seen as a threat by AHIP," Larry Jacobs, health policy professor at the University of Minnesota, told Modern Healthcare. "This (hire) is a signal change."
With exchange plans and Medicare Advantage seen as two major areas for growth in the private industry, Tavenner provides inside knowledge and Congressional connections, as well as a high profile image, experts suggest—which could help the lobbying group rally following its downward financial trend and the recent departure from the group of UnitedHealth.