The agency that oversees the federal health care overhaul on Friday named a top Optum executive as its second-in-command as part of an Obama administration effort to bolster management and accountability before the November open enrollment.
Andy Slavitt, 47, will become principal deputy administrator at the Centers for Medicare & Medicaid Services (CMS) and will oversee day-to-day agency program operations, according to the announcement. He will be responsible for integrating policy and operational coordination for the agency's Medicare, Medicaid, CHIP and insurance exchange initiatives.
During Slavitt's time at Optum, a unit of UnitedHealth Group Inc., the company has helped at least four states and the federal government work out technical problems with the Obamacare health exchanges, including in Minnesota.
Health and Human Services Secretary Sylvia Burwell announced Slavitt's appointment Friday as well as a new management structure at the Centers for Medicare and Medicaid. Slavitt joins the federal agency after more than 20 years in the private sector.
Thrivent Financial analyst David Heupel, who has been following UnitedHealth Group's rising influence in the health care marketplace, said the move is evidence that the once "combative attitude" toward the managed care industry is thawing under the need for data-driven decisions.
"The government is realizing that in order to fix the health care system — not just providing insurance coverage through the Affordable Care Act, but providing better products and services in all government-sponsored health plans — they're going to need the private sector's abilities to operate more effectively," Heupel said.
"Quite frankly, the Uniteds, the Aetnas and the WellPoints of the world can probably do a better job than the federal government as it relates to analyzing populations, predicting cost trends and providing a service that is effective both on a cost and a benefit basis."
Slavitt could not immediately be reached for comment, and a CMS spokesman said Slavitt would not be available to speak to the Star Tribune.