Fierce Healthcare January 29, 2024
Medicare Advantage (MA) continues to grow, but there are signs that its profitability is on the decline, according to a new report from Moody’s Investors Service.
The analysis found that margins declined from 4.9% in 2019 to 3.4% in 2022. Margins also fell in the commercial risk-based sector, but by a smaller amount, and they grew in Medicaid during that window, according to the report.
These data are based on reports from 10 payers rated by Moody’s, which encompass two-thirds of all MA enrollees.
Dean Unger, vice president at Moody’s and one of the report’s authors, told Fierce Healthcare that MA has continued to balloon given the sheer volume of people reaching Medicare eligibility, but translating higher membership to profitability...
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