Report: Commercial Revenue Decreasing Among Health Insurers

From a report by Mark Farrah (http://www.markfarrah.com/healthcarebs.asp):

Due to economic and demographic changes health insurers have seen a shift in sources of revenue. Comprehensive commercial coverage as a percentage of total revenues has fallen from 59% in 2006 to 51% in 2009. The growing senior population accounts for some of the growth in the Medicare segment, managed Medicare products now account for 21% of health plan total revenues, up from 16% in 2006. Revenue from state Medicaid programs also grew as a percentage of total revenues from 10% in 2006 to 14% in 2009, a consequence of current economic conditions and a result of more states moving toward managed care to insure low income residents.

With health care reform making more individuals eligible for Medicaid, look for this trend to continue. This trend away from commercial business is the major reason United Healthcare started its emphasis on Medicaid managed care several years ago.