Oak Street Health and Aetna team up to expand value-based MA coverage in Michigan and Indiana

Under a new value-based network agreement, 1.6 million Aetna members will now have access to Oak Street Health’s locations in Indiana and southeast Michigan.

Oak Street, a network of primary care centers that serve Medicare patients, announced the agreement with Aetna that will expand coverage for its members in both states.

Aetna Medicare Advantage members will now have access to the 10 primary care centers in both states run by Oak Street Health.

"Expanding our partnership with Aetna will bring our proven model of preventive, personalized care to Aetna's members in Indiana and Michigan," said Rafe Petty, division president of Oak Street Health, in an announcement. "We couldn't be more excited to introduce an additional 1.6 million Medicare-eligible Aetna members to our holistic approach to health. We look forward to seeing these members in our centers throughout Michigan and Indiana over the coming months."

The agreement took effect on April 1. It will allow Aetna Individual Medicare Advantage members and retirees that receive coverage through Aetna Group Medicare Advantage plans to have access to Oak Street Health's primary care centers. Aetna became part of CVS Health last November as part of a $69 billion deal.

The agreement marks further growth for Oak Street Health, which has been rapidly growing its primary care centers for adults on Medicare in medically underserved communities.

Oak Street's care is based on a new model that focuses on value for its patients—not on volume of services—according to the organization. The company is accountable for its patients' health, spending more than twice as long with its patients and taking on the risks and costs of their care, the company said.

According to Oak Street, its facilities feature more comprehensive services than a traditional doctor's office, including 24-hour access to a physician, flexible scheduling, more face time with doctors, community health and wellness events, and a dedicated care team to coordinate patients’ health needs. The strategy has reduced Medicare hospitalizations in other Oak Street facilities by more than 40%, company officials said.

"Aetna is a leader in providing innovative ways to access care for our members, enabled by strong, collaborative provider partnerships with aligned incentives for all," said Gregg Kimmer, executive director and general manager for Aetna Great Lakes Individual Medicare Advantage plans.

"By working together with Oak Street Health, we will be able to collectively help deliver improved outcomes and a superior experience to our Medicare members, meeting them in their communities where many of the conversations between patients and providers occur,” he said.