“Socialism,” Schmocialism…
Will M4A (Medicare for All) happen?
Yes, without a doubt.
Why?
It’s in the BEST INTEREST of the Insurance Companies’ bottom line.
THEY are the ones driving M4A.
Point out JUST ONE example where they have publicly stated that they oppose M4A.
You can’t.
Why not?
Because they don’t.
Researchers analyzed annual corporate filings with the federal Securities and Exchange Commission, known as 10–K reports, for the five largest for-profit commercial insurers. Data are for 2010 through 2016, which includes 3 years before the ACA’s major insurance reforms and 3 years following them.
The five largest commercial insurers together enroll 43% of the insured population, and they increasingly rely on their Medicaid and Medicare business for growth and profitability. Federal and state governments could potentially improve access to coverage by requiring insurers that participate in Medicaid or Medicare to also participate in the marketplaces in the same geographic area.
The 5 largest US commercial health insurance companies together enroll 125 million members, or 43% of the country’s insured population.
Over the past decade those insurers have become increasingly dependent for growth and profitability on public programs, according to an analysis of corporate reports.
“Despite reported losses in insurers’ individual-market business, corporate reports reveal healthy profitability and strong revenue growth overall, with other market segments — including Medicare and Medicaid — offsetting losses. The data underscore a growing mutual dependence between public programs and private insurers.”
In 2016 Medicare and Medicaid accounted for nearly 60% of those companies’ health care revenues and 20% of their comprehensive plan membership.
- Medicare and Medicaid business grew faster than other segments between 2010 and 2016, doubling from 12.8 million members to 25.5 million across all five firms. By 2016, the carriers accounted for 52% of the Medicare Advantage market. Medicaid enrollment also doubled (7 million to 15 million).
- Despite experiencing losses in the individual market, 4 of the 5 (with the exception of Humana) reported that pretax profits either held steady or increased from 2013 through 2016, the first three years of the ACA’s individual-market reforms.
- Profit margins had declined between 2010 and 2013 (prior to ACA implementation) before stabilizing between 2014 and 2016 (with the exception of Humana), as individual-market losses were offset by gains in other segments.
In 2016, Medicare and Medicaid accounted for 59% of combined U.S. revenue for the 5 largest insurers, more than doubling since 2010, from $92.5 billion to $213.1 billion.
• Collectively, the 5 insurers’ membership grew by 23 million (23%) from 2010 to 2016, with 4 of the 5 growing by at least 20%. This was more than double the increase from 2005 to 2010, the five years leading up to the ACA’s passage.
• The stock prices for all five insurers cumulatively increased more than 200% from 2011 to 2016.
Medicaid and Medicare have been a key source of membership growth for the five insurers, with plans strategically positioning themselves to enter or expand in these markets. For example, when Anthem purchased Amerigroup in 2012, it more than doubled its Medicaid membership while expanding into 20 new states.
UnitedHealthcare, meanwhile, expanded into Medicare by partnering with AARP to offer Part D prescription coverage and buying regional plans that had Medicare Advantage business.
At the same time, these insurers have exited a number of state ACA marketplaces, citing financial uncertainty. To stabilize insurance markets across all segments and ensure consumer access to plans, the authors say, federal and state law could require any carrier participating in Medicare or in state Medicaid programs to also offer individual-market plans in those geographic areas. Such “tying” requirements would make it more difficult and costly for plans to jump in and out of markets.
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