Psychotherapy Finances

Public relations has not been the strong suit of health insurers this year. As health care reform was being debated, for example, some companies announced double-digit premium increases.

And WellPoint was the target of scathing criticism in April when a Reuters report accused the company of canceling the policies of women diagnosed with breast cancer. Scrambling to counter the bad publicity, WellPoint announced on May 26 that it was “unilaterally” implementing the federal Breast Cancer Protection Act, which hasn’t even been passed by Congress yet.

Now comes an effort by UnitedHealth Group, one of the nation’s largest insurers and parent company of United Behavioral Health – the largest behavioral managed care organization in the country, surpassing Magellan Health Services. UHG announced last week that it had named a new “vice president of social responsibility.”

Kate Rubin will also become executive director of the United Health Foundation, with a budget of $55 million in 2009.

Speaking of social responsibility, CIGNA Health has this to say on its Website: “CIGNA is one of the fore-runners of displaying corporate social responsibility. CIGNA not only makes monetary donations, but donates water and time to individuals around the globe.

“CIGNA has worked to transform their business to become environmentally friendly. The company conducts most business online to avoid the use of paper and recycles four million pounds of paper every year.”

All of which is bound to make you feel warm and fuzzy about health insurance companies, right?

By the way, look for insurers to become increasingly competitive in the Medicaid market, both in terms of medical services and behavioral health. That’s because a major prong of the health care reform law will be increasing Medicaid rolls throughout the 50 states (using federal money).

Magellan’s First Health Services, which targets the Medicaid market, is changing its name to Magellan Medicaid Administration on July 1. Coincidence? Perhaps not.