I guess even with 15% skim; its tough to make a buck.
Last month, Humana (HUM) announced that it will exit some Medicare Advantage plans for next year, forcing more than half a million seniors to find a new health plan.
The reason for the coverage cutback: high costs and slimmer profit margins in certain markets, according to Humana CFO Celeste Mellet.
According to KFF research, the percentage of Medicare Advantage enrollees who faced terminated plans this year reached 60% or higher in Wyoming, South Dakota, New Hampshire, North Dakota, and Vermont.
- insurers have been steadily shuttering plans, trimming some benefits, and increasing deductibles.*
Insurers aren’t exiting Medicare Advantage plans as a business — they’re just shedding plans that are dragging profitability.
Of course not. The insurers are making changes to benefit their shareholders not the insured patients.