Karen Ignagni started a new role Sept. 1 as president and CEO of New York City-based EmblemHealth, the parent company of Group Health Incorporated and the Health Plan of New York. In a recent interview with Crain's New York Business, the former president and CEO of America's Health Insurance Plans discussed her new gig.
Here are six things to know about Ms. Ignagni's position at EmblemHealth.
1. EmblemHealth has no plans to convert to a for-profit structure. New York Governor Andrew Cuomo hinted at the possibility of Emblem becoming a for-profit insurer late 2011. But for now, Emblem will remain a nonprofit. Ms. Ignagni is pleased with the decision. "Our board has made a very clear decision [that] we are, and will be, a nonprofit plan," she said.
2. One of Ms. Ignagni's top priorities is turning around EmblemHealth's finances. HIP and GHI reported a loss of $494 million in 2014 on $7 billion in revenue. In the first quarter, they reported combined net losses of $40 million. But Ms. Ignagni addressed these issues with employees on her first day. "Every plan looks to make sure it is always right-sizing its workforce," she said. "We're looking at our corporate management structure and how to support that mission."
3. EmblemHealth will continue operating in all its current market segments. Ms. Ignagni wants to continue to deliver the quality coverage people expect from Emblem. "We will stay in the individual and small-group markets," said Ms. Ignagni. "In the commercial market, we will continue offering affordable, effective coverage."
4. Ms. Ignagni believes she can differentiate EmblemHealth from other insurers. "Paying for quality and value has to be real," she said. Ms. Ignagni stressed how Emblem has an incentive structure for hospitals, complete with new contracts with quality and performance standards. She also discussed Emblem's Advantage Care Physicians, an embedded physicians' practice. Ms. Ignagni proposed providing a new set of offerings, such as a tristate strategy for employers.
5. Ms. Ignagni highlighted EmblemHealth's growth strategy. Emblem will rethink how to structure benefits, choose partners and add value to the market. "We have an opportunity to add value," Ms. Ignagni said. "We need to tell that story."
6. Ms. Ignagni has no trepidation about her decision to leave AHIP. "I feel like the luckiest person in the world being offered this job," she said. After working with leaders of health plans during her time at AHIP, Ms. Ignagni is eagerly anticipating working on the operational side of health insurance.