Where Medicare Advantage Enrollment Lags, Health Systems See Opportunity

Kevin Weinstein
312-273-6623
kweinstein@valencehealth.com

Two large Midwest health systems are building an insurance plan together centered on Medicare Advantage. The joint venture marks yet another example of providers' burning ambition to join the insurance game. Many of them are honing their play in the Medicare league. The growth of provider-owned health plans likely will not subside because systems want to raise revenue where they can. They also see value in controlling premium dollars, which could help them manage care for high-risk patients like Medicare beneficiaries, who typically represent half of a hospital's patient base. Another benefit of starting out with Medicare plans: Private insurers often don't have footprints so large that it's daunting to enter the market. Read more here