Kaiser: Health insurers’ margins were more than double in Medicare Advantage than in other markets in 2021. Gross margins in the Medicare Advantage market averaged $1,730 per enrollee in 2021, compared with $768 in the Medicaid managed care market, $745 in the individual market and $689 in the fully insured group market.
George Halvorson brought this up in the Health Care Blog article that you cited last week. The subsidy formula for Medicare Advantage is just kicking out huge profits…..and it sure might be time for the government to shrink the lump sum payouts to Med Advantage carriers.