KENNEBUNK, Maine, July 8, 2015 /PRNewswire/ -- The Individual and Medicaid markets continue to drive growth for health plans nationwide, according to a recent analysis of enrollment trends by Mark Farrah Associates. Health insurers are investing in growth opportunities afforded by the ACA (Affordable Care Act), specifically Marketplace Exchanges and Medicaid expansion. The Medicare market is another growth segment that many health plans are pursuing by virtue of aging Americans. Meanwhile, Employer Group Risk membership continues to decline. Mark Farrah Associates substantiated these trends by comparing segment enrollment totals from 1st quarter 2014 with 1st quarter 2015.
Insurance companies provide medical coverage for approximately 258 million people, based on 1Q15 statutory financial reports. The Employer Group ASO (administrative services only for self-funded plans) and Employer Group Risk segments are by far the largest with respect to total membership. However, in recent years, health reform and demographics have been fueling growth in Medicaid, Medicare and the Individual, Non-Group segment. The following are key findings from Mark Farrah Associates' assessment.
- According to the latest membership figures, more than 20.1 million people are currently enrolled in Individual, Non-Group medical plans.
- Year over year, Managed Medicaid membership increased by 11.5 million.
- Membership in Medicare Advantage (MA) plans increased to 17.3 million as of 1Q15.
- Employer Group Risk membership dropped to 59.8 million.
- Employer group ASO (administrative services only for self-funded business) membership grew to 115.6 million covered lives.
Changes abound in the dynamic health insurance industry. Five of the largest health insurers are in negotiations for potential M&A deals. How the pending mergers and acquisitions fall out and how these potential deals will impact markets and competition remain to be seen.
For further speculation, the outcome of the 2016 presidential election could also set the tone for change. In the interim, health plans large and small are working to solidify whatever footholds they have established. As the industry braces for more change, the need for health insurer market share and financial performance data has never been greater.
To read the full text of "Health Enrollment Trends and Market Outlook", visit the Analysis Briefs library on the Mark Farrah Associates website www.markfarrah.com.
About Mark Farrah Associates (MFA)
Mark Farrah Associates (MFA) is a leading provider of health plan market data and analysis tools for the healthcare industry. If your company relies on accurate assessments of health plan market share to support business planning, we encourage you to contact us to learn more about our products. Our portfolio includes the Health Coverage Portal™, County Health Coverage™, Health Insurer Insights™, Medicare Business Online™, Medicare Benefits Analyzer™, and Health Plans USA™ - - www.markfarrah.com.
Mark Farrah Associates
Ann Marie Wolfe, 412-595-7124
SOURCE Mark Farrah Associates