http://managedhealthcareexecutive.modernmedicine.com/managed-healthcare-executive/news/payer-merger-impact-provider-reimbursement?cfcache=true

Though recent payer mergers will have a big impact on the industry, it’s doubtful that impact will be related to provider reimbursement. SafaviThat’s according to Kaveh Safavi, senior managing director for consulting firm Accenture’s global healthcare business.

Safavi says the goal behind the payer mergers is to reduce the cost of doing business, not to reduce reimbursement. Insurance is a highly regulated business, and payers are trying to remain profitable and sustainable over time, he says.

“The profit margin for payers is typically 5%. If they’re going to plan for the future, payers have to lower the cost of doing business. By merging, these payers can become more competitive and keep their administrative costs low.”