Becker's Healthcare January 26, 2024
Though Medicare Advantage enrollment keeps climbing, the program may not have the profitability it once did for insurers.
In an analysis shared with Becker’s, Moody’s analysts wrote that the program “seems to be losing some of its luster,” facing a significant increase in medical costs and lower reimbursement rates from CMS.
Earnings in Medicare Advantage shrunk by 2.1% among the insurers Moody’s rated from 2019 to 2022, despite premiums and members growing by 40% in the same time period.
Humana, the second-largest Medicare Advantage insurer by membership, posted a $541 million loss in the fourth quarter of 2023, a result of what executives called an unprecedented increase in medical utilization.
Other insurers are not immune to...
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