Medicare = Big Bucks for Insurers ~ Can They Afford to Leave the Market?

When Congress debated cutting payments to Medicare Advantage plan sponsors, what did the sponsors threaten?  To get out of the Medicare market.  Yet can they really afford not to be in the Medicare market, especially given that 3 of the top Fortune 500 companies in 2011 were WellCare Health Plans, Humana, and Centene, all of which are health insurers with a high proportion of Medicare Advantage enrollees? WellCare’s share price has nearly doubled while Humana and Centene are up about 50%.

Here’s an article about profits these sponsors are earning.

If you have time, also watch the video with Dr. Donald Berwick on “How to heal health care” at the end of the article.

Karen Joy Fletcher

Our blogger Karen Joy Fletcher is CHA’s Communications Director. With a Masters in Public Health from UC Berkeley, she is the online “public face” of the organization, provides technical expertise, writing and research on Medicare and other health care issues. She is responsible for digital content creation, management of CHA’s editorial calendar, and managing all aspects of CHA’s social media presence. She loves being a “communicator” and enjoys networking and collaborating with the passionate people and agencies in the health advocacy field. See her current articles.