How Big Companies Increased Revenue Amid Membership Losses
Challenges and Revenue Growth for Private Health Plans
According to KFFhealthNews, as states could now drop individuals from Medicaid,\ private Medicaid health plans faced big challenges. But even though they lost lots of members big companies like UnitedHealthcare, Centene, and Molina found ways to make more money. They convinced states to pay them more for each person in Medicaid thinking younger healthier people were leaving and only sicker ones stayed. So they got more money like Molina did from 19 states.
During the Medicaid changes health plans didn’t know what would happen as states checked who could stay in the program. Before this they expected the people left in Medicaid to be sicker. Still, UnitedHealthcare Centene and Molina earned more money in 2023 up to 18%. Even though they lost Medicaid members they got more money from states and paid more to some places.
Medicaid Health Plans Navigate Revenue Growth Amid Membership Decline
Overall as pandemic rules ended Medicaid health plans faced big problems. But some like UnitedHealthcare Centene and Molina made more money by getting states to pay more for each Medicaid person. Even though they lost some members they still earned more in 2023.