UnitedHealth Group expects to add around 1 million Medicare Advantage and commercial members by the end of 2023.
UnitedHealth Group CEO Andrew Witty told investors on an Oct. 13 call the company is confident it has made necessary adjustments to respond to rate changes being phased in by CMS over the next three years, which will reduce reimbursements plans receive from the federal government in some cases.
"That has really been the story behind the investments of 2023 in response to the changes that have been signaled by CMS, so that we go into 2024, 2025, 2026 and 2027 feeling strong, feeling that we've taken advantage of these last several months to ensure that we've adjusted and adapted our strategy and business in readiness for the change in the funding environment," he said.
UnitedHealthcare is the largest Medicare Advantage insurer. As of Sept. 30, the company had 7,645,000 MA members, up 540,000 from the end of 2022, according to its third-quarter earnings report.
The company also expects to add around 1 million members in its commercial business by the end of the year. UnitedHealthcare's fastest-growing commercial plans have no annual deductibles, COO Dirk McMahon told investors.
"UnitedHealthcare members in these offerings are receiving more preventive care, while paying about 50% less out of pocket, compared to people enrolled in traditional offerings, and their employers can reduce the total cost of care with an average savings of 11%," Mr. McMahon said. "These results are why such new offerings are among our fastest growing."