Annual gross margins of Medicare Advantage plans averaged$1,608 per covered person between 2016 and 2018–about double thegross margins for the ACA and employer-based groupmarkets.
As some presidential candidates have begun proposing MedicareAdvantage-type plans as a way to implement Medicare for All, a new study finds those plansare likely more profitable for private insurers thanemployer-sponsored plans or the plans on Obamacare’s individualmarket.
The report by the Kaiser Family Foundation (KFF)looked not at actual profits—since these different models havedifferent levels of administrative costs—but at gross margins, thedifference between premiums taken in and medical costs perindividual.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
