Apr 5, 2022 - Health

Medicare Advantage insurers get a pay bump

Adriel Bettelheim

A health cross with money at its base. — Illustration: Aïda Amer/Axios

Private insurers who administer Medicare Advantage plans can expect a 5% average increase in federal payments next year — half a percentage point above what the Biden administration proposed in February.

Why it matters: The pay bump in the controversial program marks a big win for insurers like UnitedHealth Group and Humana and doused speculation the administration would break with a trend of strong recent increases.

The MA plans’ total expected revenue, factoring other changes, would rise 8.5% in 2023, compared to a 7.6% increase in 2022, per the announcement.

Zoom out: More than 28 million seniors and people with disabilities were enrolled in a private MA plan at the beginning of this year, an 8.8% increase from the same time in 2021.

Critics worry that insurers and private investors are gaining a growing share of federal Medicare dollars and boosting profits, not patient care.
Six health insurers control roughly three-quarters of the MA market, an Axios analysis of federal data found earlier this year.
Insurers say Medicare Advantage delivers better services, better access to care and better value than traditional Medicare.

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Medicare Advantage insurers get a pay bump

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