Aetna, Banner Health launch joint venture health plan in Arizona

Aetna and Banner Health have created a jointly owned health plan company, Banner|Aetna, that will provide health coverage to employers and their employees in Maricopa and Pinal counties in Arizona, with plans for future statewide expansion.

Banner|Aetna combines Banner's care management capabilities, facilities, providers and delivery system with Aetna's health plan expertise, analytics and health information technology, the organizations said.

The partnership builds upon the success of Aetna and Banner's five-year accountable care organization relationship formed in 2011, that has shown significant clinical improvements, according to both organizations. This includes a 24 percent decrease in avoidable surgery admissions; a 4 percent increase in generic prescribing; an 11.5 percent overall reduction in medical costs and more than $2.6 million in savings in 2015.

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"Through the Aetna Whole Health-Banner Health Network ACO partnership, we have achieved a shared total savings of more than $9.9 million to date for members and customers in Arizona," said Tom Grote, president of Aetna's Arizona market.

Banner Health also runs an ACO with the Centers for Medicare and Medicaid Services Pioneer ACO model that in the most recent reporting year saved more than $24 million.

The new Banner|Aetna health plan hopes to save money by eliminating redundancies in care and services, and will pass on those savings to consumers and employers through lower premiums, Banner|Aetna said, though they did not clarify what redundancies would be slashed.

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New commercial products for fully insured and self-insured customers in Maricopa and Pinal counties will be available beginning January 1, 2017. Aetna members who are currently part of the Aetna Whole Health Network ACO plans will have the opportunity to transition into plans offered through the new partnership.

Aetna members will have access to the Banner Health Network, which includes more than 900 primary care physicians, 5,800 specialists, 125 urgent care centers, 14 hospitals, nine health centers and 11 emergency centers.

Members will have secure online access to plan information and their providers, and will be able to schedule appointments, view claims, lab and test results in a link between Aetna's secure member site and Banner's patient portal.

Twitter: @SusanJMorse