Medicare Advantage (MA) has been a consistent earnings booster for insurers, but recent challenges in this space are likely to ding profitability, according to a new report. Analysts at AM Best found that elevated utilization trends beginning in 2023 led to a $5.7 billion underwriting loss in 2024 for MA plans, while insurers reported gains in the previous five years. Underwriting gains in MA accounted for 40% of total gains from 2019 to 2022, but that dropped to 20% in 2023. The report found that close to three-quarters of companies with a significant concentration in MA reported underwriting losses in 2024.
Read the full article: Elevated Utilization Drove $5.7B Medicare Advantage Underwriting Loss in 2024: Report //
Source: https://www.fiercehealthcare.com/payers/elevated-utilization-drove-57m-medicare-advantage-underwriting-loss-2024-report