Wake up to Mike Allen’s AM, the 10 stories driving your day

Stories

Insurers go all in on Medicare Advantage

Truck advertising Medicare Advantage
Photo: Bill Clark/CQ Roll Call via Getty Images

Medicare’s annual enrollment period started Monday, and health insurers are banking that a lot more seniors and people with disabilities will sign up for private Medicare Advantage plans instead of traditional Medicare coverage.

Driving the news: UnitedHealth Group executives yesterday said earnings per share next year will increase by roughly 13%, due in large part to MA's “extraordinary growth opportunity.”

  • Devoted Health, a startup founded by Todd and Ed Park, just raised $300 million in venture funding as it starts selling MA plans for the first time in eight Florida counties.
  • MA plans are all the rage among hospital-owned insurers, too.
  • MA enrollment increased 8% in 2018, and the feds expect a 12% enrollment bump for 2019.

The bottom line: Both Democrats and Republicans support MA, so the enrollment wave likely won’t subside in the near term. But there are still deep concerns about insurers gaming the program.

More stories loading.