CVS Health acquires Hella+Health amid Medicare Advantage troubles
The Medicare Advantage broker, Hella+Health, has stated that it receives commissions but does not accept rewards from carriers.
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- CVS Health has acquired Hella+Health, a Medicare Advantage broker based in New York City, New York.
“Hella+Health is part of the CVS Health family of companies with a vision to empower older Americans to live healthy, happy lives,” the broker’s website states.
CVS Health has not made a formal announcement about the acquisition. However, the founder and chief executive officer of Hella Group, LLC, Rafal Walkiewicz posted that, “Hella+Health is now part of CVS Health,” on his personal LinkedIn page.
Hella+Health serves Medicare-eligible individuals in every state and the District of Columbia. The broker firm guides consumers through the Medicare plan selection process via the company’s wholly-owned, licensed insurance agency called “audomo insurance services LLC.”
The company offers three primary services. Its tools support Medicare eligibility and coverage coaching, Medicare plan shopping, and tracking changes to the Medicare market or an individual Medicare plan.
When asked via email for comment, CVS Health directed HealthPayerIntelligence to the Hella+Health website and to Walkiewicz’s post. HealthPayerIntelligence contacted Walkiewicz via LinkedIn for further comment, but did not receive a timely reply.
The website emphasizes that the broker does not push certain plans. The advisor tool might suggest that consumers purchase products that the broker does not offer. The site also states that health insurance carriers contribute to the company’s revenue through commissions.
If Hella+Health is obliged to receive a reward for a sales quota under its contract with a company, the reward is donated, the company states. Otherwise, the broker does not take marketing incentives.
The move came around the time that CVS Health revealed a somewhat sour Q1 2024 report, largely due to its Medicare Advantage business. The healthcare company cut its operating income by more than half due to its lower Medicare Advantage star ratings and higher Medicare utilization. Net income dropped to $1.12 billion, a steep decline from $2.14 billion in 2023.
However, the payer saw its total revenues for the Health Care Benefits segment increase, in part due to Medicare growth. Aetna Medicare Advantage plan enrollment grew from 3.38 million enrollees at the end of March 2023 to 4.20 million by the end of the first quarter of 2024.
“We are confident we have a pathway to address our near-term Medicare Advantage challenges,” Karen S. Lynch, president and chief executive officer of CVS Health, said in the company’s Q1 2024 report.
