Humana said its individual enrollment in Medicare Advantage plans would jump by “at least 625,000” for 2023 in what is becoming a banner year for the popular privatized health insurance for U.S. seniors.
The projection for Medicare Advantage growth was included in Humana’s fourth quarter earnings report, that included a $15 million loss thanks to investment costs in its health plans. Revenues rose to $22.4 billion in the fourth quarter on Medicare Advantage growth and higher premiums compared to $21 billion in the year-ago period.
“Humana is pleased to start the year in a position of strength, with robust 2023 individual Medicare Advantage membership growth expected to be at least 625,000 for the year, a year-over-year increase of 13.7 percent,” Humana chief executive Bruce Broussard said. “This robust membership outlook reflects high quality growth, with our improvement in retention more than doubling expectations, and marks a continuation of our strong track record of membership growth, with our compounded annual growth from 2018 to 2022 at 10.4 percent as compared to industry growth of 9.7 percent.”
Medicare Advantage plans, which are a large share of Humana’s business, contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs.
Humana’s forecast of membership growth comes following a recent report from the Centers for Medicare & Medicaid Services showing a record of more than 30 million Americans enrolled in Medicare Advantage plans across the country. That’s almost half of all Medicare beneficiaries now enrolled in privatized coverage sold by companies like Humana, CVS Health’s Aetna, UnitedHealth Group, Cigna and an array of startups, regional health plans and Blue Cross and Blue Shield companies.
Humana said its January 2023 individual Medicare Advantage membership stood at 5.06 million, up “approximately 494,400, or 11 percent from December 31, 2022, reflecting net membership additions during the recently completed 2023 Annual Election Period (AEP).”