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Herb Fritch, chairman and CEO of HealthSpring, shared his views on what is needed to effectively drive health care reform to both reduce cost and increase quality  with attendees at the Council Capital Healthcare Breakfast on Friday, December 16, 2011. In October health insurer Cigna announced a definitive agreement with HealthSpring for the acquisition of HealthSpring by Cigna for $3.8 billion, with closing expected in the first half of 2012.

As head of one of the country’s largest and fastest growing companies focused primarily on Medicare Advantage plans, Fritch emphasized the importance of moving healthcare providers from a fee-for-service structure to a value-based system with incentives for better outcomes, compliance and cost savings.  HealthSpring’s model includes a focus on primary care physicians delivering a coordinated network of care with patients being referred to specialists by their primary care physician. Twenty-five percent of the Medicare population is enrolled in Medicare Advantage plans. 

Fritch also discussed the influence of politics on health care policy.  According to Fritch, the healthcare legislation rightly addresses insuring the 30 million uninsured, but has too little em

phasis on cost savings and too little focus on quality improvement.  Because politicians are reluctant to take anything away from beneficiaries, he does not expect significant changes in Medicare and Medicaid.