A Closer Look at the Five Largest Publicly Traded Companies Operating Medicaid Managed Care Plans


Overall Medicaid and CHIP enrollment is now over 90 million. The newest nationwide Medicaid controlled care enrollment knowledge (from 2020) display 72% of Medicaid beneficiaries were enrolled in complete managed care organizations (MCOs). In FY 2021, bills to complete Medicaid MCOs accounted for 52% of total Medicaid spending (or greater than $376 billion). Medicaid is a significant supply of revenue and profits for multi-state insurance coverage firms. KFF research of National Association of Insurance Commissioners (NAIC) knowledge display gross margins according to enrollee within the Medicaid controlled care marketplace had been upper in 2021 than they had been pre-pandemic. Medicaid MCOs have performed a key position in responding to the COVID-19 pandemic and are anticipated to work with states in accomplishing outreach and providing support to enrollees all the way through the “unwinding” of the continual enrollment requirement. Starting April 1, 2023, states had been ready to restart disenrollments (which were paused since February 2020) after accomplishing a full review of eligibility. Many of us can be discovered to be not eligible for Medicaid, whilst others may just face administrative boundaries and lose coverage despite remaining eligible. Medicaid MCOs have a monetary passion in keeping up enrollment, which might additionally save you disruptions in take care of enrollees. This transient takes a better take a look at the 5 greatest publicly traded firms (additionally known as “dad or mum” corporations) working Medicaid MCOs which account for part of Medicaid MCO enrollment nationally. Data and knowledge reported on this transient come from quarterly corporate income reviews, monetary filings, and different corporate fabrics in addition to from nationwide administrative knowledge.

Medicaid enrollment within the 5 greatest publicly traded firms working Medicaid MCOs

5 for-profit, publicly traded firms – Centene, Elevance (previously Anthem), UnitedHealth Crew, Molina, and CVS Well being – account for fifty% of Medicaid MCO enrollment nationally (Determine 1). All 5 are ranked within the Fortune 500, and 4 are ranked within the most sensible 100, with overall revenues that ranged from $32 billion (Molina) to $324 billion (UnitedHealth Group) for 2022. Every corporate operates Medicaid MCOs in 12 or extra states (Determine 2). All 5 corporations additionally function within the industrial and Medicare markets (Determine 3); alternatively, the distribution of club throughout markets varies throughout corporations. Two corporations – Molina and Centene– have traditionally centered predominantly at the Medicaid marketplace. Medicaid participants accounted for over 90% of Molina’s total clinical club and just about 70% of Centene’s clinical club as of March 2023 (Determine 3).

Mixed Medicaid enrollment around the 5 corporations larger through 13.5 million or 44.1% from March 2020 to March 2023 (Determine 4)
. Medicaid enrollment total grew by more than 20 million (or about 31%) all the way through the continual enrollment duration (February 2020 to January 2023), leading to expansion in MCO enrollment as smartly. Enrollment expansion has been basically attributed to the Households First Coronavirus Reaction Act (FFCRA) provision that required states to ensure continuous enrollment for Medicaid enrollees in alternate for a short lived building up within the Medicaid fit price. Expansion in dad or mum company Medicaid enrollment might also replicate different process together with company acquisitions and/or new contracts. For the corporations that record this data, Medicaid earnings expansion 2022 over 2021 ranged from 11% (Centene) to 18% (UnitedHealth) to 21% (Molina). Those similar corporations reported Medicaid earnings expansion starting from 13% (Centene) to 16% (UnitedHealth) to 43% (Molina) year-over-year 2021 over 2020. Molina reported the clinical margin earned through the Medicaid section used to be $3.0 billion in 2022 and $2.3 billion in 2021 (clinical margin = top rate earnings – clinical prices).

Implications of “unwinding” for the 5 greatest publicly traded firms working Medicaid MCOs

All 5 corporations be expecting Medicaid enrollment losses following the tip of the continual enrollment requirement (over 2023 and 2024); alternatively, corporations be expecting to retain some participants who lose Medicaid protection of their Market and different merchandise (Appendix Table). The Consolidated Appropriations Act, 2023 ended the continual enrollment provision and allowed states to renew disenrollments beginning April 1, 2023. Whilst the selection of Medicaid enrollees who may be disenrolled all the way through the unwinding duration is very unsure, it’s estimated that hundreds of thousands will lose protection. KFF estimates 17 million people may just lose Medicaid protection – together with some who’re not eligible and others who’re nonetheless eligible however face administrative boundaries to renewal. Charges of Medicaid protection loss will range throughout states relying on how states approach unwinding. CMS has issued particular guidance permitting states to permit MCOs to replace enrollee touch data and behavior outreach concerning the eligibility renewal procedure to facilitate persevered enrollment in addition to Market transitions, the place suitable. In June 2023, CMS launched new guidance highlighting a number of new methods to be had to states to forestall procedural terminations together with allowing controlled care plans to help enrollees in finishing sure portions of renewal bureaucracy.

In first quarter 2023 investor income calls, executives of the publicly traded firms working Medicaid MCOs expressed the purpose of maximizing continuity of protection for participants thru supporting persevered enrollment in Medicaid and transitions to the Market (and different merchandise), the place suitable. The corporations record accomplishing direct and oblique outreach, together with textual content messages, reside calls, and community-based supplier campaigns, to teach participants about Medicaid redeterminations and the renewal procedure in addition to about their Market choices if they’re not eligible for Medicaid (Appendix Table).

All 5 corporations be offering a Certified Well being Plan (QHP) within the ACA market in lots of states the place they function a Medicaid MCO, alternatively there might not be plan alignment if plans function locally. Present enrollees who’re decided to not be eligible for Medicaid could also be eligible for ACA market (which has upper source of revenue eligibility thresholds than Medicaid) or different protection (e.g., CHIP coverage or employer subsidized insurance coverage (ESI)). Folks eligible for protection within the Market would possibly qualify for plans with zero premiums; alternatively, folks transitioning to Market protection would possibly face upper cost-sharing and other supplier networks. Prior analyses suggest that people face boundaries shifting from Medicaid to different protection techniques and lots of would possibly enjoy gaps in coverage. CMS guidance outlines states would possibly inspire MCOs that still be offering a QHP to proportion data with their very own enrollees who’ve been decided ineligible for Medicaid to help within the switch of people to Market protection (so long as state-specific rules and/or contract necessities don’t limit this process). To steer clear of gaps in protection, controlled care plans would possibly achieve out to folks ahead of they lose protection so they can practice for Market protection upfront.

Having a look Forward

Medicaid controlled care plans have a monetary passion in keeping up enrollment, which might additionally save you disruptions in take care of enrollees. The 5 publicly traded corporations which can be the topic of this research account for part of all Medicaid MCO enrollment nationally. As states unwind the continual enrollment provision, many of us can be discovered to be not eligible for Medicaid. Others may just face administrative boundaries and lose protection in spite of last eligible. Medicaid controlled care plans can help state Medicaid companies in speaking with enrollees, accomplishing outreach and help, and in the end, in making improvements to protection retention – together with facilitating transitions to the Market.



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