Today is an exciting day for Convey Health Solutions as we are now a publicly traded company trading on the New York Stock Exchange under the ticker “CNVY”. I am proud of our team’s focus, discipline, and commitment to our Medicare Advantage (MA) and prescription drug plan (PDP) clients. It is their efforts that have made us successful.
Juggling Priorities: Competition, Membership & Compliance
Managing a healthcare technology company focused on the government sector is challenging because of the highly regulated and continuously evolving nature of the work, combined with the need to utilize technology to improve clinical outcomes and reduce costs in the health care system. At Convey, we have found that by bringing together purpose-built technology, member engagement tools, and leading advisory expertise, we can offer solutions that meet the challenges that our health plan clients face.
The proliferation of value-based reimbursement models, like Medicare Advantage, require broad ecosystem coordination that may fall outside a health plan’s core competencies. Operating in an increasingly competitive environment, health plans need the assurance of proven technology and a partner like Convey to effectively support their plan operations and their members. A partner like us who is on the forefront of interpreting and responding to rapid changes in the highly regulated government sector is vital for our clients’ continued success.
Convey has proven year after year that focusing on technology that helps health plans provide benefits to members and that improves member engagement is a winning strategy. We are committed to creating best-in-class technology and to providing an excellent work environment for our team members. Last year when COVID-19 struck, we launched a rapid work at home initiative that combined the efficiencies and automation in our Miramar platform with the operational expertise of our business teams. As a result of our timely response to the COVID-19 challenges, we fulfilled the needs of our health plan clients throughout the crisis.
It’s critical to have dedicated compliance, advisory, and quality control teams monitoring the complex and highly regulated Medicare market. Many health plans have elected to adapt legacy systems designed for commercial health markets to work in the more complex government sector. We created purpose-built technology from the start; technology designed for the government sector. As a result, our technology offerings are frequently both less expensive than the competition in total cost of ownership and higher quality. As Medicare Advantage plans grow in popularity, health plans are increasingly seeing the need to partner with organization’s like Convey who have the technology and the market expertise to deliver.
Sustained Market Growth Ahead
According to U.S. Census data, the 65-and-older population in the U.S. grew by over 33% during the past decade, resulting in large and rapidly growing Medicare population base. Medicare Advantage enrollment realized a 7% compounded annual growth rate from 2015 to 2020, and is expected to grow at a similar pace through 2025. Simply put, Medicare Advantage will remain a very important part of our client’s business for years to come with increased attention being placed on both improving clinical outcomes and reducing costs.
The Centers for Medicare & Medicaid Services (CMS) has embraced supplemental benefits through Medicare Advantage as a way to improve care. As an early pioneer in over-the-counter supplemental benefit administration, Convey Health Solutions recognized that health plans offering supplemental benefits could gain a competitive advantage, and the value proposition has never been stronger than it is today. In 2021, plans who offered supplemental benefits grew their membership by nearly four times the rate of those that didn’t offer such benefits. In addition, heath plans now recognize that social determinants of health and over-the-counter health products can improve clinical outcomes and reduce costs. Lastly, CMS is now allowing MA plans to specifically tailor supplemental benefits to address specific chronic conditions. This change in CMS position is good for the health plan, the member, and for Convey.
Expanding Solutions & Investments
Our successful integration of GHG Advisors (formerly Gorman Health Group), HealthScape Advisors, and Pareto Intelligence has enabled us to gain critical insights into market trends and individual client needs… and we are now doing it at scale. Convey currently supports 19% of Medicare members in the US, and our Miramar platform processed over 2.2 billion transactions last year between health plans, CMS, financial institutions, claims processors, and others.
We are excited about meeting the future needs of this growing market through innovation and active investment in technology and services. With our commitment to these investments, Convey will be able to expand on a larger scale that will allow us to improve our client operations and member engagement.
We expect to achieve solid growth in the coming years, which will be driven by the shift to value-based care platforms and will include:
- Cross-sell and up-sell within our existing client base,
- An increase in the number of enrollees in Medicare Advantage,
- Rising prevalence, spend, and utilization of supplemental benefits,
- Introduction of new internally developed technologies within the MA and PDP markets,
- New client wins, and
- Acquisition of accretive complementary technology solutions and services.
Convey is ready for the future. Thanks to our over 3,000 employees across the globe who embody our values of integrity and teamwork every day, we are where we are today… beginning an exciting and new chapter.