Health

Medicare Advantage growth slows in 2023: Chartis . Group


The market is growing more slowly but several insurers are leading the industry as a whole. For the first time in several years, nonprofit insurers Blue Cross and Blue Shield gained market share. These companies cover 10.2% of Medicare Advantage members and 13% of new customers.

In contrast, other nonprofit insurers continue to lose market share to for-profit competitors. In response, nonprofit service providers like SCAN Group and CareOregon are banding together to strengthen their position against for-profit and venture-capital-backed rivals.

For-profit insurers have captured 86% of new members this year. Medicare Advantage heavyweights UnitedHealth Group and Humana continue to lead the market in terms of new customers: UnitedHealthcare signed up 55% of new members and Humana 23% for 2023. The pair account for a total of 78 % of overall market share.

That’s despite UnitedHealth Group being banned from selling Medicare Advantage plans in some areas last year because the insurer failed to meet federal medical loss ratio standards. “What’s more remarkable is that they’ve grown so fast when you think about it,” Herro said.

CVS Health subsidiaries Aetna and Cigna increased registrations at a slower rate than the overall market: Aetna registrations increased 0.8% and Cigna increased 3.4%.

Centene is the only large, for-profit service provider that has lost members since last year, when registrations dropped by 44,000. The Centers for Medicare and Medicaid Services banned the company from geographically expanding in some areas next year because of poor scores on its Medicare Advantage star rating program.

“There is a very clear correlation between quality performance and enrollment performance,” says Herro. “Their star rating change is the most profound and their subscription change the most profound.”

Herro said smaller, for-profit insurers Bright Health Group and Alignment Healthcare also reported declining enrollment for 2023. Alignment Healthcare offers plans in more areas for this year but still falls. , Herro said. However, enrollment among health insurance startups has increased, led by Devoted Health, albeit at a slower rate than in previous years.

Competition in the Medicare Advantage market has deteriorated. Nearly 85% of counties lack competition, especially in rural areas, according to Chartis Group. The consulting firm says the growth of UnitedHealth Group and Humana can be attributed to reduced competition.

However, customers have more options than ever before. The average Medicare beneficiary has 43 different plans to choose from or this year, up from 39 in 2022.

news7g

News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button