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The needle has not changed much in newly eligible adults who have opted for Medicare Advantage (MA) plans compared to traditional Medicare: in 2016, 29% of adults took out an MA plan during their first year of eligibility, an increase of 6 percentage points from the 23% who selected a master's degree during their first year of eligibility in 2011, according to a new badysis by the Kaiser Family Foundation.
As a reminder, MA plans are private plans that senior Americans can choose instead of government-run Medicare. This news could silence the enthusiasm aroused by the market potential of professional badociations: the number of registrations in the mbad insurance plans has increased in recent years, but the new badysis could indicate that the Congressional Budget Office 's current predictions that badet management companies should account for nearly half of all Medicare beneficiaries by 2029 are exaggerated.
Here is what it means: The news that newly eligible beneficiaries are not hurrying into the GA, as expected, could rain on the parade of small entrants who are banking on the AG's inscription as a pillar of the growth.
Newcomer insurers may come up against a wall trying to attract new consumers. MA's lucrative projects have attracted the attention of startups in the health sector, paying attention to the growing population of seniors. Since the majority of Medicare Eligible Seniors are still leaning towards traditional service rather than MA, these players may be struggling to win the business of the recipients, especially since the giants of the marketplace are the only ones to benefit. UnitedHealthcare insurer, Humana and Blue Cross Blue Shield have already engulfed half of the MA market and might seem a safer bet for consumers.
And powerful historical operators with market power are preventing newcomers from taking advantage of MA: most of the newcomers in MA have yet to witness any growth.
The largest image: Health insurance companies that focus on the AMM should refine their strategies.
Participants should not hesitate to explore MA, but insurtechs putting all their eggs in the MA basket might have to broaden their horizons. While seniors continue to be content with traditional Medicare, we still believe that MA is poised to grow a sound investment for newcomers: the total number of registrations has doubled over the past year. decade and is expected to reach an unprecedented peak of nearly 23 million members by 2019.
But without a large stream of newly eligible members, startup-style insurteches, Devoted Health and Clover Health – which focus only on MA – could prepare for defeat. Players on MA do not have a buffer as insurgents are just beginning to become familiar with AM regimes: for example, Oscar Health and Bright Health are dealing with the broader insurance market and can rely on these efforts if they manage to conquer a significant share of the AM market be tricky.
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