Coventry Looks to Gain Market Share with New Medicare Part D Products

Company Targeting the Medicare Stand-Alone Segment with 2012 Products, According to New Report from HealthLeaders-InterStudy

NASHVILLE--(BUSINESS WIRE)-- HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that Coventry Health Care seeks to become a major player in the Medicare Part D business through its new slate of products for 2012. Two of the three new Coventry Medicare Part D products have no deductibles, a key differentiator that may attract large numbers of seniors, according to the National MCO Analyzer: Coventry.

Coventry is marketing a new suite of stand-alone Medicare Part D plans nationwide that use Walmart, Target and Walgreen’s pharmacies as its network.

“This network-based Part D Plan distinguishes itself with a zero copay for Tier 1 drugs,” said HealthLeaders-InterStudy Principal Analyst Paula Wade, who noted that the higher drug tiers have significant cost-sharing. “The product will likely appeal to seniors who want first-dollar coverage of generics, but are confident they won’t need drugs on the plan’s higher tiers.”

According to the report, Coventry can offer copay-free Tier 1 drugs by pricing Tiers 2, 3, 4, and 5 largely with coinsurance rather than copayments.

“If these new Medicare products are successful, they will drive up Coventry’s drug purchasing clout,” said Ms. Wade.

The National MCO Analyzer: Coventry will answer the following questions:

  • How does Coventry's regional commercial footprint distinguish it from other national carriers?
  • Where is the company growing/not growing/likely to expand?
  • How does its Medicaid strategy tie in with its Commercial market strategy and the creation of the health exchanges?

You can view an abstract of this report here:

About National MCO Analyzer

National MCO Analyzer is the account manager’s tool for in-depth analysis of national MCO strategies, opportunities and challenges. Profiling the country’s 14 largest managed care organizations, each series includes:

  • Product mix and offerings
  • Benefit reductions and cost sharing
  • Focus on outcomes and integration of care
  • Mergers, acquisitions and partnerships

About HealthLeaders-InterStudy

HealthLeaders-InterStudy, a Decision Resources Group company, is the authoritative source for managed care data, analysis and news. For more information, please visit

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Kristi Guillemette, 781-993-2618
[email protected]
Decision Resources Group
Elizabeth Marshall, 781-993-2563
[email protected]

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