Health Payer Intelligence April 30, 2018
Reports from the first quarter of 2018 indicate that Medicare Advantage health plans and high premiums drove increases in profits for payers.
Healthcare payers experienced strong first quarter profits in 2018 because of sharp growth in Medicare Advantage (MA) enrollment and premium revenues, according to newly released earnings statements.
The reports confirm the stability and profitability of the Medicare Advantage market, which has developed into a $187 billion segment. Payers also noted strong returns on premiums, citing increased rates and efficient healthcare spending as primary drivers.
Larger commercial payers in general struggled with the sale of individual health plan products and experienced some membership decreases. However, payers with specialized plan offerings in Medicaid and individual markets noted positive revenue gains...
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