Medicare Map Favors Aetna

Geography could play an important role in the new Medicare game.

In recent months, managed care companies from across the nation have rushed to capitalize on a major expansion of the government insurance program for senior citizens. However, national carriers like Aetna (AET Quote) and WellPoint (WLP Quote) may have already secured the best places in line. Meanwhile, regional players like Sierra Health Services (SIE Quote) could find themselves stuck behind, competing for less-profitable segments of the new Medicare Part D drug-coverage business.

That's the suggestion offered Wednesday by Credit Suisse First Boston analyst Patrick Hojlo, who recently discovered that the new senior business appears to be worth more in certain parts of the country than in others. Hojlo reached his conclusion after looking beyond national estimates for Medicare premiums to more specific -- and often widely varying -- state-by-state data. ...