Mark Farrah Associates Assessed Year-Over-Year Health Insurance Segment Profitability

MCMURRAY, Pa.--(BUSINESS WIRE)--Mark Farrah Associates (MFA), www.markfarrah.com, released an analysis brief providing insights into the 2022 profitability for commercial and government lines of health insurance business. MFA compared year-over-year profitability for the Individual, Employer-Group, Medicare Advantage and managed Medicaid segments. Financial insights were gleaned from aggregated 2021 and 2022 National Association of Insurance Commissioners (NAIC) statutory financial data from MFA’s Health Coverage Portal™.

• For 2022, the average medical expense ratio for the Individual segment was 86.5%, as compared to 87.8% the previous year.
• For the Employer-Group Risk segment, growth in premium, which more than offset the increase in medical expenses, pushed the average medical expense ratio for this segment down to 86.2% for 2022, from 88.7% in 2021.
• For Medicare Advantage, premium growth, which was greater than the increase in medical expenses, pushed the average medical expense ratio for this segment down to 86.1% for 2022, from 87% in 2021.
• For Managed Medicaid, the increase in premiums offset the increase in medical expenses per member per month, dropping the medical expense ratio down slightly to 86.5% in 2022.

Market analysts throughout the industry rely on enrollment data and segment performance metrics to gain better insights into health plan market share and competitive positioning. Mark Farrah Associates maintains financial data as well as enrollment and market share for the health insurance industry in its subscription-based Health Coverage Portal™. MFA will continue to monitor health plan performance and competitive shifts across all healthcare segments.

To read the full text of "2022 Health Insurance Segment Profitability", visit the MFA Briefs library on Mark Farrah Associates' website.

About Mark Farrah Associates (MFA)

MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include: Health Coverage Portal™, Medicare Business Online™, Medicare Benefits Analyzer™, County Health Coverage™, Health Plans USA™ and 5500 Employer Health Plus. Follow us on LinkedIn!