Though mega-mergers have taken the insurance industry by storm, Harvard Pilgrim Health Care President and CEO Eric Schultz believes there is still an important place for regional payers, according to Hartford Business.
Harvard Pilgrim covers 1.2 million lives and reported $3 billion in revenue in 2017 across the four states it serves.
"Honestly, we aren't at a point where we're reacting to [mega-mergers]," Mr. Schultz told Hartford Business. "The best thing you can do is watch this in a very measured way so you know how to best compete, either as an innovator or a fast-follower."
Mr. Schultz said even more than payer consolidation, mergers between major health systems have affected his business by giving providers better leverage when negotiating reimbursement rates.
"The real question now is: What will the healthcare systems do to effectively use their size for ultimately creating a better healthcare system?" Mr. Schutlz told Hartford Business.