Becker's Healthcare September 6, 2024
Major Medicare Advantage carriers have been reporting an increase in inpatient care costs during the first half of 2024, influencing their pricing and plan design strategies for 2025.
Humana’s CEO, James Rechtin, reported that Medicare Advantage exceeded growth expectations in the second quarter, but the company is seeing higher-than-expected inpatient costs, likely linked to the recently implemented two-midnight rule. Meanwhile, CVS Health CFO Tom Cowhey warned in August of rising costs within the inpatient care, dental, and pharmacy spaces, prompting CVS to lower its 2024 earnings guidance.
In contrast, Clever Care, a regional Medicare Advantage company, says its biggest challenge is not related to rising hospital utilization among its members. Karen Walker Johnson, interim CEO at Clever Care, joined the...
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