Healthcare Finance News February 2, 2024
A significant spike in utilization is putting cost pressure on insurers, which will likely affect earnings.
While Medicare Advantage remains attractive to the healthcare industry due to strong growth, high revenue and earnings per member, profitability is on the decline, according to a new analysis by Moody’s Investor Service.
The signs began around 2022, when MA earnings were 2% lower than in 2019 despite substantial membership and premium growth. UnitedHealth Group, Humana and Aetna, which together comprise more than half the MA market by membership, have fared better, generally maintaining margins. Newer entrants, with smaller market shares, have struggled.
MA performance has remained under pressure in 2023 because of a significant spike in utilization for most of the companies, which...
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