Over the past few years, the number of people enrolled in Medicare Advantage has exploded, thanks to an aging population that prefers the extra benefits not offered in traditional Medicare. The latest federal data show that 26.4 million people were in Advantage plans as of January – up 41.4% from 2017. During that same time, the number of those eligible for Advantage plans rose 10.3%. As enrollment grows, the gross profitability of Medicare Advantage has exceeded all other business lines for insurers. A 2020 Kaiser study found that Medicare Advantage plans averaged $200 gross margin per member per month (up from $139 pmpm in 2018). [Modern Healthcare, March 6, 2021]
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