Healthcare DIVE August 7, 2019
Dive Brief:
- The Medicare Advantage, individual and group markets all pack healthy profit margins for insurers, according to a Kaiser Family Foundation report released this week.
- Average gross margins — the average amount by which premium income exceeds yearly claims costs for each covered person — are considered a critical benchmark for insurer financial performance. Of the three private health insurance markets, the Medicare Advantage market had the highest gross margins, with an average of $1,608 per enrollee per year.
- The average gross margin for the MA market was about double the gross margins of the other two markets, pegged at $855 per covered person for the group market, and $779 per covered person for the individual market.
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