Mark Farrah Associates Assessed Annual 2015 Performance Results for Leading Health Plans
MCMURRAY, Pa.--(BUSINESS WIRE)--In the latest Healthcare Business Strategy report, Mark Farrah Associates (MFA), www.markfarrah.com, assessed annual 2015 enrollment and profitability for Aetna, Cigna, Health Care Service Corporation (HCSC), Humana, Kaiser Permanente, UnitedHealth Group and Anthem. MFA reported that total medical membership of the leading companies added nearly 3.4 million members since year-end 2014 however year-over year profitability was less than favorable for many insurers. Collectively, total membership for the top health plans as of December 31, 2015 was 147.6 million up from 144.2 million at year-end 2014. Membership data, financial statistics and observations were gleaned from the April 2016 Health Insurer Insights™ series, a Mark Farrah Associates' publication.
Among the 7 leading health plans, all but two insurers realized net gains in the total number enrolled in Commercial, Medicare and Medicaid plans for 2015, reflecting varying degrees of both growth and decline in risk-based and self-funded medical membership. It is important to note that MFA assessed total comprehensive medical membership, therefore, Medicare Supplement enrollment was excluded when MFA found it was integrated with other medical membership figures.
As of December 31, 2015, UnitedHealth maintained its position as the industry leader with nearly 38.3 million medical members, a 1.46 million increase from 36.8 million at year-end 2014. Note that UnitedHealth's Medicare Supplement membership of over 4 million was not included in this assessment. Anthem enrolled over 37.7 million medical members, including over 5.4 million BlueCard members, an increase of 3% year-over-year. For the purposes of this assessment, MFA excluded approximately 845,000 Medicare Supplement lives from Anthem's total medical membership.
HCSC saw an increase of 123,000 total medical members, year-over-year. The company covered over 14.4 million people as of December 31, 2015. Cigna and Kaiser also reported increases in their medical membership for 2015 however Aetna and Humana experienced enrollment declines. Aetna reported a decrease of 165,000 members, reflecting declines in its commercial insured products and ended 2015 with 22.9 million medical members. Humana's medical membership decreased from 9.68 million in 2014 to 9.47 million in 2015.
MFA assessed segment reported revenue and net income for the calculation of profit margins for four of the seven health plans; Aetna, Kaiser, UnitedHealth and Anthem. For the twelve months ended December 31, 2015, Aetna reported the only improvement out of the four insurers with a profit margin of 4.2%, an increase from 4% at year-end 2014. Anthem's profit margin was 3.2%, down from 3.5% a year ago. Kaiser's 2015 operating margin was 3.06%, down from 5.34% at year-end 2014. UnitedHealth's profit margin decreased from 5.84% in 2014 to 5.14% in 2015. Reasons reported for UnitedHealth's decline included imposed ACA fees, Medicare Advantage funding reductions and increased spending on specialty medications.
To read the full text of "Year-Over-Year Membership for Leading Health Insurers Increased by Nearly 3.4 Million", visit the Analysis Briefs library on the Mark Farrah Associates website.
About Mark Farrah Associates (MFA)
MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Medicare Business Online™, Medicare Benefits Analyzer™, Health Coverage Portal™, County Health Coverage™, Health Insurer Insights™, and Health Plans USA™.
Mark Farrah Associates
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