MCMURRAY, Pa.--(BUSINESS WIRE)--Health insurance enrollment trends continue to reflect noticeable shifts amidst the changing industry. As insurers are closely monitoring their competitive position, they remain focused on controlling costs and retaining customers. In the latest Healthcare Business Strategy report, Mark Farrah Associates (MFA), www.markfarrah.com, compared membership by segment between 4th quarter 2015 and 4th quarter 2016 to provide insights about enrollment trends.
MFA’s analysis of data from the NAIC (National Association of Insurance Commissioners), the CA DMHC (California Department of Managed Health Care) and MFA’s ASO estimates indicated the Medicare Advantage and managed Medicaid segments, as well as ASO (administrative services only) business, continued to experience membership increases between December 31, 2015 and December 31, 2016. Enrollment in the Individual, Non-group and Employer Group Risk segments continued to decline over the past year.
Based on membership data filed with statutory financial reports, insurance companies provided medical coverage for approximately 264 million people, as of December 30, 2016. The Employer Group ASO and the Group Risk segments dominated in terms of total membership, covering 45% and 23% of the market, respectively. However, growth was most significant in the Managed Medicaid segment as membership increased by 3.3 million beneficiaries between 4Q15 and 4Q16. The following are key findings from Mark Farrah Associates' assessment of year-over-year fourth quarter enrollment trends:
- Approximately 17.3 million people are currently enrolled in Individual, Non-group medical plans, representing a 3% decrease between 4Q15 and 4Q16.
- Managed Care Organizations (MCOs) now provide coverage for over 50 million beneficiaries, representing 7% growth, year-over-year. According to CMS reports, a total of nearly 74.5 million people rely on Medicaid as their source of health insurance coverage as of January 2017.
- Fourth quarter membership in Medicare Advantage (MA) plans increased to 18.4 million as of December 31, 2016, from 17.6 million in the prior year.
- Employer Group Risk membership declined by 1.1 million members from approximately 60.6 million to 59.5 million.
- According to MFA’s recent estimates, Employer Group ASO membership grew by approximately 980,000 members to 119 million ASO covered lives.
As the healthcare landscape continues to experience a period of transformation, the need for health insurer market share and financial performance data is in high demand. Mark Farrah Associates will continue to monitor enrollment changes and competitive shifts across all healthcare segments.
To read the full text of "Fourth Quarter 2016 Health Insurance Enrollment Trends and Segment Performance", visit the Analysis Briefs library on 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™, and Health Plans USA™.