Medicare Benefit enrollment has seen regular development over the past 15 years, and over that point, so have the fortunes of many managed care corporations that present plans.
In 2007, there have been ~8M Medicare Benefit (“MA”) enrollees, in response to an analysis from Kaiser Family Foundation (KFF). In 2022, ~28.3M seniors had been enrolled in a MA plan. In 2021, ~26M had been.
In accordance with Kaiser Household Basis, practically half of all Medicare enrollees — 48% — had been additionally in a MA plan this 12 months.
As MA turns into an even bigger income for well being plans, listed below are the managed care corporations which might be benefitting probably the most.
UnitedHealth (NYSE:UNH) is by far the biggest MA insurer based mostly on enrollees, with 7.9M. That accounts for 28% of all MA enrollees.
The insurer has additionally seen good MA development over the past 12 years. In 2010, its plans accounted for 20% of total MA enrollment. Between March 2021 and March 2022, the agency added greater than 749K beneficiaries.
In its just reported Q3 2022 financial results, the MA and retirement section introduced in ~$27.9B, ~12% enhance from the prior-year interval.
The second largest MA insurer within the nation, Humana (NYSE:HUM) accounted for 18% all enrollees. It has 5M enrollees in its plans.
That 18% determine has remained regular since 2016. Humana (HUM) lately benefitted as it’s one of two companies to see Medicare Advantage Star Ratings increases for the 2023 ranking 12 months based mostly on their largest contracts.
In February, the corporate stated it was taking initiatives that will enable it to fund $1B in growth and investment in the MA business.
Elevance Well being
Blue Cross and Blue Defend plans account for the third largest variety of MA enrollees and Elevance Well being (NYSE:ELV), previously generally known as Anthem, presents BCBS plans in 14 states, together with, notably California and New York.
This 12 months, all BCBS MA plans accounted for 4.1M enrollees, 14% of the nationwide whole. BCBS plans’ share of MA enrollees has solely diminished by just a few share factors since 2011.
For 2023, Elevance Well being stated that three-quarters of its affiliated MA health plans will have zero-dollar premiums.
CVS Well being
Due to its possession of Aetna, CVS Well being (NYSE:CVS) has a stake in MA. This 12 months, it has 3.1M MA members, accounting for 11% of all enrollees.
CVS’ (CVS) share of the MA pie has elevated considerably since 2011, when it accounted for simply 5% of whole enrollment.
Earlier in October, CMS downgraded Aetna’s Nationwide PPO MA plan to three.5 stars, which means it will not be eligible for CMS’ high quality bonus funds. CVS (CVS) stated it expects to mitigate any financial impact from the downgrade.