A key aim of the Medicare Benefit program was to advertise competitors to enhance well being advantages and decrease prices for seniors. Nevertheless, a brand new report from KFF reveals that this might not be occurring.
The report printed Monday discovered that in 2024, 79% of counties within the U.S. have been extremely concentrated for Medicare Benefit, and 18% have been very extremely concentrated.
As well as, 89% of Medicare Benefit enrollees have been in a extremely concentrated market, and 4% have been in a really extremely concentrated market in 2024. About 90% of Medicare beneficiaries lived in a county the place a minimum of half of Medicare Benefit enrollees have been in plans sponsored by one or two insurers.
“Increased market focus in Medicare Benefit insurance coverage markets might decrease the inducement for insurers to compete for potential enrollees by planning extra interesting by means of extra complete advantages or decrease prices,” the researchers stated.
For the evaluation, KFF examined publicly accessible, county-level Medicare Benefit plan info and enrollment information for all 50 states, in addition to Washington D.C. and Puerto Rico.
KFF additionally discovered that rural counties had extra concentrated Medicare Benefit markets. In 2024, about 39% of essentially the most rural counties have been very extremely concentrated, in comparison with 6% of city counties.
As well as, UnitedHealthcare or Humana was the most important Medicare Benefit insurer in additional than half of the counties in 2024. UnitedHealthcare was the most important Medicare Benefit insurer in 41% of counties in 2024, whereas Humana was the most important Medicare Benefit insurer in 25% of all counties. Blue Cross Blue Protect plans, in the meantime, have been the most important in 11% of counties, adopted by CVS Well being (8% of counties) and Elevance Well being (4% of counties).
UnitedHealthcare and Humana have lengthy been the 2 largest insurers within the Medicare Benefit market, and collectively, they accounted for practically 47% of whole enrollment nationwide in 2024.
The researchers famous that though the Medicare Benefit market has change into very concentrated, this has not been a latest focus for policymakers or regulators.
“The newest exercise on the federal degree occurred in 2017 when the Division of Justice blocked a merger between insurers Aetna and Humana, arguing if it went by means of it could considerably elevate market focus within the Medicare Benefit market,” KFF stated within the report. “Extra just lately, the dialog relating to competitors in well being care has revolved round elevated consolidation in supplier markets, particularly hospitals and well being methods.”
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