Medicare Advantage Insurer’s Margins on the Rise

March 2, 2023

An analysis from the Kaiser Family Foundation shows that insurers in Medicare Advantage saw strong margins in 2021, twice that of other markers. This is leading many insurers to enter into the market and many others to redouble their efforts, Humana which announced it is pivoting away from the commercial market.

According to Arielle Dreher and Tina Reed, “Gross margins in the Medicare Advantage market in 2021 averaged $1,730 per enrollee, similar to levels seen in 2018 and 2019 before the pandemic began, per KFF. That was substantially higher than margins seen in the individual ($745 per enrollee), fully insured group ($689 per enrollee) and Medicaid managed care ($768 per enrollee) market”

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(Source: Axios, March 1st, 2023)

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