2/8/2024 0 Comments Price penetration strategy![]() ![]() Individual segment profit pools are estimated to expand at a 27 percent CAGR from 2022 to 2027 as enrollment rises, propelled by enhanced subsidies, Medicaid redeterminations, and other potential favorable factors (for example, employer conversions through the Individual Coverage Health Reimbursement Arrangement offered by the Affordable Care Act) EBITDA margins are estimated to improve from 2 percent in 2022 to 5 to 7 percent in 2027. Growth is likely to be partially offset by enrollment changes in the segment, prompted by a shift from fully insured to self-insured businesses that could accelerate as employers seek to cut costs if the economy slows. We also estimate commercial segment profit pools to rebound as EBITDA margins likely return to historical averages by 2027. Finally, the duals population enrolled in managed care is estimated to grow at more than a 9 percent CAGR from 2022 through 2027. 1 Congressional Budget Office Baseline Projections, May 2023 Medicare Advantage penetration was increasing by less than 2 percent annually from 2016 to 2019 but increased by about 3 percent annually in 20-for further information, see “Medicare Advantage/Part D contract and enrollment data,” Centers for Medicare & Medicaid Services, US Government. Medicare Advantage enrollment has grown historically by 9 percent annually from 2019 to 2022 however, we estimate the growth rate will reduce to 5 percent annually from 2022 to 2027, in line with the latest Centers for Medicare & Medicaid Services (CMS) enrollment data. Enrollment in Medicare Advantage, and particularly the duals population, will continue to grow. Several factors will likely influence shifts in profit pools. On the other hand, some segments will continue to see slow growth, including general acute care and post-acute care within health systems, and Medicaid within payers (Exhibit 1).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |