Centene growing Medicare Advantage footprint by 26% in 2022

Photo: Cecilie Arcurs/Getty Images

Centene, like other insurers before it, will be broadening its reach in the Medicare Advantage space in 2022, expanding into 327 new counties and three new states: Massachusetts, Nebraska and Oklahoma.

In all, this represents a 26% expansion of Centene's MA footprint, with the offering available to a potential 48 million beneficiaries across 36 states. Currently, Centene serves more than 1.1 million MA members across 33 states.

In September, Centene also announced it would consolidate its current Medicare brands, including Allwell, Health Net, Fidelis Care, Trillium Advantage, 'Ohana Health Plan and TexanPlus, under one unified brand dubbed Wellcare. 

To add some pizzazz to this brand consolidation, Hall of Fame NFL quarterback Joe Montana will serve as Wellcare's brand ambassador. Montana will collaborate on TV commercials, digital ads, social media and other communications to help seniors understand their Medicare options.

"As our national footprint continues to grow, we are focused on creating one Medicare brand to better align with our strategy and goals, help us deliver on our mission, and, most importantly, better serve our 1.1 million Medicare Advantage members across the country," said Rich Fisher, senior vice president and CEO of Medicare for Centene.

WHAT'S THE IMPACT?

Medicare Advantage has become a hot market for insurers heading into next year.

The average premium for Medicare Advantage plans will be lower in 2022 at $19 per month, compared to $21.22 in 2021, according to the Centers for Medicare and Medicaid Services, though Part D coverage is rising to $33 per month, compared to $31.47 in 2021.

The agency released the 2022 premiums, deductibles and other key information for Medicare Advantage and Part D prescription drug plans in advance of the annual Medicare open enrollment, which begins on October 15 and ends on December 7.

Enrollment in MA continues to increase, CMS said. In 2022, it's projected to reach 29.5 million people compared to 26.9 million enrolled in a Medicare Advantage plan in 2021.

THE LARGER TREND

Centene joins several other payers, including UnitedHealthcare and Cigna, in growing its Medicare Advantage footprint heading into 2022, the latter two insurers having made their announcements this week.

UnitedHealthcare, which already has significant market control with its Medicare Advantage plans, will strengthen its foothold in the space by adding a potential 3.1 million members and reaching 94% of Medicare-eligible consumers in the U.S. in 2022, the company said.

Yet despite UHC's foothold, the company underwent scrutiny from the federal government earlier this month, when CMS blocked four Medicare Advantage plans from enrolling new members in 2022 because they didn't spend the minimum threshold on medical benefits. Three UnitedHealthcare plans and one Anthem plan failed to hit the required 85% mark three years in a row.

Medicare Advantage plans are required to spend a minimum of 85% of premium dollars on medical expenses. Failure to do so for three consecutive years triggers the sanctions.

Cigna, meanwhile, will grow its MA plans into 108 new counties and three new states – Connecticut, Oregon and Washington – which will increase its geographic presence by nearly 30%, the payer announced.

Cigna has increased its geographic presence in MA by 80% since 2019, the insurer said. The company now offers plans in 477 counties across 26 states and the District of Columbia.
 

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com