Press Release - NOVEMBER 17, 2017
A.M. BestTV: Demographics and Product Availability Drive Growth of Medicare Advantage
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 17, 2017
Double-digit premium growth in the Medicare Advantage sector has been the status quo for the past decade. This consistent uptick increased the segment share to nearly a quarter of all health insurance premiums in 2016, up from 16.6% in 2007. Net premiums nearly tripled to $187.5 billion during this same period.
“Almost one-third of Medicare beneficiaries are now enrolled in a Medicare Advantage plan,” said Maehr. “This is partially attributed to increased availability of Medicare Advantage products by insurers as insurers continue to look to this segment for premium growth. Additionally, the population of Medicare-eligible people is growing at a faster rate than ever before, with almost 10,000 people turning 65 every day.”
Hopper addressed the matter of serious deterioration in underwriting margins between 2013 and 2015.
“There were a couple of regulatory and legislative changes, which contributed to the deteriorating operating performance between 2013 and 2015. In no specific order, the Patient Protection and Affordable Care Act was a large contributing factor. Furthermore, sequestering also played a role, as well as the American Tax Payer Relief Act.”
To access the Best’s Special Report, “Medicare Advantage – Highly Concentrated; Suppressed Margins,” go to http://www3.ambest.com/bestweek/purchase.asp?record_code=267427 .
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