DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/qxtdw7/michigan_health) has announced the addition of the "Michigan Health Market Review 2014, Part One" report to their offering.
Profits for Michigan health plans declined in 2013, but enrollment in Medicaid and individual plans have surged in 2014. These findings and others are reported in Part One of Michigan Health Market Review 2014.
This is the 18th year that this report has analyzed health care payer and provider markets in Michigan. The publisher is an independent researcher and consultant based in Minnesota.
Key findings in this new report include:
- After posting strong profits in 2011 and 2012, profitability for Michigan health plans dropped in 2013. Michigan HMOs had net income of $212 million in 2013, or an average margin of 1.8% of underwriting revenues. That was down from net income of $311 million in 2012. Blue Care Network (including its Medicaid HMO) was still the most profitable HMO, but its net income declined from $167.4 million in 2012 to $110 million in 2013. Michigan HMOs added almost $200 million to their capital in 2013 and now have almost $1.4 billion more than the minimum required by law.
- Profits on Medicaid plans have dropped sharply since 2009. In 2009, Medicaid HMOs in Michigan reported underwriting income of $96.4 million, but by 2013 that had dropped to $41.2 million. The average underwriting margin for Medicaid plans was 0.9% in 2013.
- Medicaid HMO enrollment did not grow in 2013, but is poised to grow sharply in 2014. In less than three months, more than 300,000 low-income Michigan residents have enrolled in Healthy Michigan, the state's version of the Medicaid expansion under the Affordable Care Act, and they will enter HMOs. The state is also moving to expand the use of managed care for aged and disabled Medicaid recipients, so another 200,000 persons could migrate into HMOs and other managed care arrangements.
- Enrollment in individual insurance plans has surged since the beginning of 2014. Enrollment in individual plans through HMOs and other insurers increased by 88,000 in the first three months of 2014, or almost 40%. We expect a similar increase to be reported for the second quarter of the year. Blue Care Network got the lion's share of the new enrollment, adding more than 58,000 individuals. Based on this strong enrollment growth,
- The health insurance exchange has demonstrated its viability in Michigan as a competitive marketplace where individuals can shop for affordable coverage. Five new companies plan to market products on the exchange during the open enrollment season this fall and many insurers are reducing their premiums to be more competitive in a price sensitive market. Only two of the companies have proposed rate increases of more than 10%.
Key Topics Covered:
2. Market Structure
3. Health Plans
4. Provider Systems
5. Trend Review
6. Health Plan Enrollment
7. Medicaid Managed Care
8. Medicare Plans
9. Net Income
10. HMO Premium Trend
11. HMO Expenses and Provider Payments
12. Health Plan Capital
13. A Look Ahead
For more information visit http://www.researchandmarkets.com/research/qxtdw7/michigan_health