As Insurers Bet Big on Government Business, Challenges Remain

  • Mar 18, 2022

    For the country’s major health insurers, an increasing amount of revenue and growth comes from business lines that serve government programs. Industry experts tell AIS Health that they don’t envision this changing anytime soon, but they do see ongoing business risks that will keep insurers on their toes.

    “The aging of the U.S. population has had a positive impact on the senior products segment and has led to consistent growth in the segment’s revenues and earnings for health insurers, a trend that is expected to continue in 2022 and beyond,” noted a recent report from the insurance-focused credit rating firm A.M. Best. Medicare Advantage premiums reached $292.9 billion in 2020 — about 13.8% higher than 2019 and more than double that of 2012.

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  • Leslie Small

    Leslie has been working in journalism since 2009 and reporting on the health care industry since 2014. She has covered the many ups and downs of the Affordable Care Act exchanges, the failed health insurer mega-mergers, and hundreds of other storylines spanning subjects such as Medicaid managed care, Medicare Advantage, employer-sponsored insurance, and prescription drug coverage. As the managing editor of Health Plan Weekly and Radar on Drug Benefits, she writes and edits for both publications while overseeing a small team of reporters who also focus on the managed care sector. Before joining AIS Health, she was a senior editor for the e-newsletter Fierce Health Payer, and she started her career as a copy editor at multiple local newspapers. She graduated with a dual degree in journalism and political science from Penn State University.

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