{"id":11580,"date":"2026-02-24T02:47:52","date_gmt":"2026-02-24T02:47:52","guid":{"rendered":"https:\/\/medical-article.com\/?p=11580"},"modified":"2026-02-24T02:47:52","modified_gmt":"2026-02-24T02:47:52","slug":"which-types-of-health-insurers-make-the-most-money","status":"publish","type":"post","link":"https:\/\/medical-article.com\/?p=11580","title":{"rendered":"Which types of health insurers make the most money?"},"content":{"rendered":"<p>It turns out the answer is Medicare Advantage plans according to a <a href=\"https:\/\/www.kff.org\/medicare\/health-insurer-financial-performance\/#fd69ae5c-8132-44fc-9fec-372c3f580b48\">KFF analysis released today.<\/a>  However the reason why Medicare Advantage is more profitable may not be obvious:<\/p>\n<p> At the end of 2024, gross margins per enrollee ranged from $608 in the Medicaid managed care market to $1,655 in the Medicare Advantage market. Gross margins per enrollee in the group market was $846, roughly half the level observed among Medicare Advantage plans on average. Per enrollee gross margins in the individual market in 2024 amounted to $987. The level of margins reflects, in part, the overall health needs and spending in a market segment. A similar margin in percentage terms will translate to a higher margin in dollars per enrollee when average health expenses are higher. <\/p>\n<p>In fact, Medicare Advantage medical loss ratios (i.e., the percent of premium income that insurers pay out in the form of medical claims) was much higher for Medicare Advantage (90%) than the individual (85%) and group market (88%), but slightly lower than Medicaid Managed Care (91%).<\/p>\n<p>Perhaps surprisingly, health insurance gross margins have remained relatively flat\u2013or even declined\u2013between 2018 and 2024.  <\/p>\n<p>You can read the full analysis <strong><a href=\"https:\/\/www.kff.org\/medicare\/health-insurer-financial-performance\/#40a31c73-4ed5-4edf-97e3-d8fb755eba96\">here<\/a><\/strong>.<\/p>","protected":false},"excerpt":{"rendered":"<p>It turns out the answer is Medicare Advantage plans according to a KFF analysis released today. However the reason why Medicare Advantage is more profitable may not be obvious: At the end of 2024, gross margins per enrollee ranged from $608 in the Medicaid managed care market to $1,655 in the Medicare Advantage market. Gross&#8230;<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-11580","post","type-post","status-publish","format-standard","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/posts\/11580"}],"collection":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11580"}],"version-history":[{"count":0,"href":"https:\/\/medical-article.com\/index.php?rest_route=\/wp\/v2\/posts\/11580\/revisions"}],"wp:attachment":[{"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medical-article.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}