MCMURRAY, Pa.–(BUSINESS WIRE)–Mark Farrah Associates (MFA), www.markfarrah.com, released an analysis brief providing insights into mid-year profitability for commercial and government lines of health insurance business. Just as Covid-19 generated serious implications on small businesses and the economy, the repercussions of the virus for U.S. health insurers became evident late in the first quarter. MFA compared year-over-year profitability for second quarter to assess the pandemic’s effect on financial and enrollment results. Financial insights were gleaned from aggregated 2Q19 and 2Q20 National Association of Insurance Commissioners (NAIC) statutory financial data from MFA’s Health Coverage Portal™.
- At the end of second quarter 2020, the average medical expense ratio for the Individual segment was 73.6%, as compared to 73.9% the previous year.
- The decline in medical expenses pushed the average medical expense ratio for the Employer-Group segment down to 77.6% in 2Q20 from 81.4% in 2Q19.
- For Medicare Advantage, premium growth along with a drop in medical expenses pushed the medical expense ratio down to 79.3% from 84.7% in 2Q19.
- An increase of 9.4% in premiums per member per month pushed the medical expense ratio for Managed Medicaid down to 85.6% from 92% in 2Q19.
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™. As stakeholders watch closely to see how COVID-19 will impact the industry, MFA will continue to monitor health plan performance and competitive shifts across all healthcare segments. To read the full text of “Health Insurance Segment Mid-Year 2020 Profitability“, visit the Analysis Briefs library on Mark Farrah Associates’ website.
About Mark Farrah Associates (MFA)
Mark Farrah Associates (MFA) is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Our product portfolio includes Health Coverage Portal™, County Health Coverage™, 5500 Employer Health Plus, Medicare Business Online™, Medicare Benefits Analyzer™, and Health Plans USA™. For more information about these products, refer to the informational videos and brochures available under the Our Products section of the website or call 724-338-4100. MFA will continue to monitor enrollment changes and competitive shifts across all healthcare segments.
Mark Farrah Associates
Ann Marie Wolfe, [email protected]
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