On Tuesday, Sept. 23, A.M. Best issued its Best’s Special Report, “Challenges to Medicare Advantage Will Negatively Impact Profitability,“ discussing the financial health of Medicare Advantage (MA) through 2024. The report states that from 2023 through the end of 2024, the Medicare Advantage sector incurred a $5.7 billion underwriting loss.
Nearly 75% of companies with an MA concentration in business incurred an underwriting loss on the MA business line in 2024. The A.M. Best report also states that in 2025, the number of MA companies with a 4-star MA contract was down 25% from the 2022 level.
Since 4-star MA contracts receive higher payment rates from CMS, this decrease suggests that some MA companies are also experiencing lower revenue from their MA business line. A.M. Best states in its report that these MA companies will continue to evaluate their position in the MA business line in 2026.
What This Means to Medicare Agents
- From 2019 to 2022, MA companies achieved underwriting gains, resulting in profits. Therefore, MA companies must address any underwriting losses they may have.
- MA companies will continue to refocus their operations on the more profitable aspects of MA, as they have over the last couple of years, through service-area reductions and exiting specific policy types.
- MA is still growing, with thousands of baby boomers retiring each day, so leaving a growing market is not a good decision.
- Expand your product portfolio to prepare for lower MA plan benefits, including ancillary products such as dental, vision, hospital indemnity, and critical illness policies.
Scott Meeks, Agility’s Medicare Product Specialist, and Chris Gaston, Agility’s Ancillary expert, are here to help you strategize and connect with Medicare and ancillary products to maximize your revenue. Scott can refer you to the best MA plans in your markets for AEP contracting. Chris can direct you to our Ancillary Products Contracting website, where you can find the best ancillary products available in your market to support your Medicare clients during plan transitions.
Contact the Agility Producer Support Team at (866) 590-9771 or support@enrollinsurance.com to schedule a call or meeting with Scott or Chris, and to get answers to any insurance questions. Producer support can also add you to our free weekly email list for timely tips and updates to help you maximize this Medicare AEP.
