Medicare Advantage plans are health insurance plans offered by private companies that contract with Medicare to provide coverage. Medicare pays these companies to cover everything that Original Medicare covers, but the plans can do so through managed care arrangements like HMOs or PPOs. Medicare Advantage plans cover all Medicare Part A and Part B benefits, excluding hospice care, and many plans also offer extra benefits like vision, hearing, dental and wellness programs.
Over 26 million Medicare beneficiaries, or 42% of all beneficiaries, are enrolled in a Medicare Advantage plan in 2023. This number has grown substantially in recent years as more seniors choose Medicare Advantage for its affordability, benefits and convenience compared to Original Medicare. When looking for a Medicare Advantage plan, it can be helpful to know which insurance companies are the largest providers in terms of membership. The market share of different insurers can give you an idea of which plans have the most resources and experience serving Medicare members nationwide.
The 5 Largest Medicare Advantage Providers
The top 5 companies with the most Medicare Advantage enrollees for 2023 are:
1. UnitedHealthcare
2. Humana
3. CVS Health (Aetna)
4. Kaiser Permanente
5. Anthem
These 5 insurers account for about two-thirds of the total Medicare Advantage market in 2023. Here is a breakdown of each company’s market share:
| Company | 2023 Enrollment | Market Share |
|---|---|---|
| UnitedHealthcare | 7.9 million | 30% |
| Humana | 5.1 million | 19% |
| CVS Health (Aetna) | 3.8 million | 15% |
| Kaiser Permanente | 3.4 million | 13% |
| Anthem | 2.5 million | 10% |
As you can see, UnitedHealthcare is the clear leader in the Medicare Advantage market with over 7.9 million members and 30% market share in 2023. Humana and CVS Health (Aetna) also have strong positions with over 5 million and 3.8 million members, respectively. The top 5 insurers account for about 22.7 million total MA enrollees nationwide.
Why UnitedHealthcare Leads in Medicare Advantage
UnitedHealthcare has held the top spot as the largest Medicare Advantage provider for many years. Here are some key reasons why UnitedHealthcare dominates the MA market:
– National footprint – UnitedHealthcare offers Medicare Advantage plans in all 50 states, allowing it to reach the broadest geographic coverage. Many other carriers have more regional footprints.
– Brand recognition – After decades serving commercial members, UnitedHealthcare is a recognized brand name that Medicare-eligible seniors often trust.
– Broad network access – UnitedHealthcare contracts with a vast number of doctors, hospitals and facilities across the U.S. to give members access to care.
– Plan options – UnitedHealthcare provides a diverse range of MA plan types, including HMOs, PPOs, private fee-for-service plans and Special Needs Plans. This variety caters to different preferences.
– Benefit offerings – UnitedHealthcare offers affordable plans with rich benefits like dental, vision, hearing, fitness memberships and over-the-counter allowances to attract enrollees.
– Technology focus – UnitedHealthcare invests heavily in data analytics and digital resources to improve customer experience and care management.
– Financial strength – As part of UnitedHealth Group, UnitedHealthcare has the resources and scale to grow its Medicare Advantage business.
UnitedHealthcare’s market-leading status gives it unique advantages in leverage, reputation and experience that are difficult for competitors to rival. The company will likely maintain its #1 position in Medicare Advantage for years to come. However, insurers like Humana and Aetna continue chipping away at UnitedHealthcare’s lead.
Other Major Medicare Advantage Providers
Beyond the top 5 largest companies, there are a number of other sizable insurers competing in the MA market nationwide:
– Cigna – 2 million members, 8% market share
– Wellcare (Centene) – 1.2 million members, 5% market share
– Blue Cross Blue Shield companies (Anthem BCBS) – 2.2 million members combined, 8% market share
– Kaiser Foundation Health Plans – 3.4 million members, 13% market share
– Alignment Healthcare – 200,000+ members, 1% market share
– Devoted Health – 100,000+ members, <1% market share
Some of these insurers have strongholds in certain states. For example, Kaiser Permanente leads in California, while Florida Blue (BCBS) dominates in Florida. Others are nationwide carriers looking to gain share like Cigna and Wellcare. Newer insurers like Alignment Healthcare and Devoted Health are positioning themselves as innovative Medicare Advantage disruptors.
There are also many regional or state-focused Medicare Advantage carriers with hundreds of thousands of members in select areas, such as Tufts Health Plan, HealthPartners, UPMC Health Plan, Priority Health and BayCare Health Plans. No single insurer has majority share across the U.S. - the market remains fragmented across dozens of payers.
Medicare Advantage Market Outlook
Looking ahead, Medicare Advantage enrollment is expected to continue growing substantially over the next decade as more baby boomers age into Medicare:
| Year | Projected MA Enrollment | Year-Over-Year Growth |
|---|---|---|
| 2023 | 28.5 million | 13% |
| 2024 | 31.4 million | 10% |
| 2025 | 34.8 million | 11% |
| 2026 | 38.5 million | 11% |
| 2027 | 42.6 million | 11% |
Based on projections from the Congressional Budget Office, Medicare Advantage enrollment will reach 42.6 million members by 2027. This represents a 50% increase over 2023 levels.
Driving this growth is an aging population, more attractive plan benefits, expanding plan options, and the convenience of one-stop Medicare and drug coverage. UnitedHealthcare and other top insurers will compete aggressively to capture new Medicare-eligible customers during this period of expansion. Smaller or newer carriers will also look to carve out geographic niches and differentiate themselves.
Insurers that can deliver affordable premiums, strong networks, supplemental benefits and quality care coordination will likely gain market share. Offering competitively priced Medicare Part D prescription drug plans can also attract new MA members. Digital capabilities and customer experience will be key competitive differentiators as well. Government funding and regulation of the Medicare Advantage program will also significantly shape the direction of the market.
Conclusion
UnitedHealthcare is undoubtedly the leading Medicare Advantage provider today with over 7.9 million enrollees nationwide. The company has held the #1 position for many years due to its brand awareness, national scale, broad networks and benefit offerings. However, insurers like Humana and Aetna are not far behind in membership.
The Medicare Advantage market is projected to see huge growth over the next 5 years as more seniors seek out the affordability and convenience of MA plans compared to Original Medicare. All the major insurers will compete aggressively for new members during this expansion period. Carriers that provide budget-friendly premiums, strong provider networks and attractive supplemental benefits will likely gain market share. Even with growth opportunities abound, UnitedHealthcare is poised to maintain its position as the largest Medicare Advantage provider for the foreseeable future.