Nursing Home Giant, Signature Health, Enters Insurance Business
Posted on Thursday, August 20, 2015 9:54 AM
One of the country's largest nursing facility companies, Signature Healthcare, is nearing its entry into the health insurance business. Enrollment for Signature Healthcare residents is set to begin in October.
In March, the Louisville-based skilled nursing facility (SNF) operator registered a company called Signature Advantage LLC with the Kentucky Department of Insurance. The new company is defined as a "provider-sponsored organization," or a provider group that accepts full risk for beneficiaries in exchange for a fixed monthly payment. It is one of the first companies of its kind to be approved by both the state of Kentucky and CMS.
Having its own insurance company will allow Signature to have a stronger alignment with its physicians, and will also fight the push from the insurance industry to give providers lower reimbursement rates.
Signature joins Humana, another Louisville-based company that started out as a SNF provider before entering the insurance business. Humana is slated to be acquired by Aetna. The consolidation of insurance companies could be "worrisome" for providers, and may lead to lower reimbursements, according to some experts.
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