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February 18, 2024
Why health insurers suddenly want sicker patients
Summary
Insurers anticipate profit surge from Medicare and Medicaid eligibles despite high healthcare costs. Shift sees profits from government plans like Medicare Advantage and Medicaid managed care. McKinsey report predicts earnings from "dual eligibles" to grow >10% by 2027. 12-13m utilize both Medicare and Medicaid, 29% in private Medicare Advantage plan. Income <$20,000 for 87% dual enrollees and majority low-income, with different health needs.
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