MCMURRAY, Pa.--(BUSINESS WIRE)--Mark Farrah Associates (MFA), www.markfarrah.com, released an analysis brief providing insights into year-end 2020 profitability for commercial and government lines of health insurance business. MFA compared year-over-year profitability to further assess the pandemic’s effect on financial and enrollment results. Financial insights were gleaned from aggregated 2019 and 2020 National Association of Insurance Commissioners (NAIC) statutory financial data from MFA’s Health Coverage Portal™.
- At the end of fourth quarter 2020, the average medical expense ratio for the Individual segment was 74.5%, as compared to 79.5% the previous year.
- The decline in medical expenses pushed the average medical expense ratio for the Employer-Group segment down to 82.8% at the end of 2020 from 84.6% in 2019.
- For Medicare Advantage, premium growth outpaced increasedmedical expenses pushing the medical expense ratio down to 82.8% from 85.4% in 2019.
- An increase of 5.8% in premiums per member per month pushed the medical expense ratio for Managed Medicaid down to 85.8% from 89.4% in 2019.
Market analysts throughout the industry rely on enrollment data and segment performance metrics to gain better insights into health plan market share and competitive positioning. Mark Farrah Associates maintains financial data as well as enrollment and market share for the health insurance industry in its subscription-based Health Coverage Portal™. MFA will continue to monitor health plan performance and competitive shifts across all healthcare segments.
To read the FREE full text of “Year-End 2020 Segment Profitability for Health Insurance Business", visit the Analysis Briefs library on Mark Farrah Associates' website.
About Mark Farrah Associates (MFA)
Mark Farrah Associates (MFA) is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Our product portfolio includes Health Coverage Portal™, County Health Coverage™, 5500 Employer Health Plus, Medicare Business Online™, Medicare Benefits Analyzer™, and Health Plans USA™. For more information about these products, refer to the informational videos and brochures available under the Our Products section of the website or call 724-338-4100. MFA will continue to monitor enrollment changes and competitive shifts across all healthcare segments.