UnitedHealthcare launches big Medicare expansion

UnitedHealthcare is trying to grow it's already large business selling Medicare Advantage health plans by adding 271 counties to its nationwide service area including seven new counties in Minnesota.

It's the company's "largest footprint expansion in five years," the Minnetonka-based health insurance giant said in a Thursday announcement.

UnitedHealthcare's push is just one of several changes for 2021 that insurers are announcing with the start Thursday of the annual marketing season for Medicare Advantage health plans as well as prescription drug plans that provide Part D benefits.

Government rules allow insurers on Thursday to start sharing plan details in advance of the annual open enrollment period, which begins Oct. 15 and runs through Dec. 7. It's a selling season that will be unusual given COVID-19.

"Safety is our top consideration this sales season, especially to protect Medicare-aged people," officials with UCare, a Minneapolis-based health plan, said via e-mail. "We are offering a plethora of virtual ways to learn about our 2021 Medicare plans."

Medicare Advantage plans are a newer form of Medicare coverage, where beneficiaries elect to receive government-funded benefits via managed care plans run by private health insurers. The market has been a big source of growth and profits for health insurers; the plans often come with lower premiums, but advocates caution that some Medicare Advantage plans offer less choice in doctors and hospitals.

People who stay in the traditional Medicare program, rather than opt for Medicare Advantage coverage, often buy supplemental "Medigap" policies to reduce their out-of-pocket expenses. Some in Minnesota still receive their government benefits through Medicare Cost plans, which the federal government has been trying to phase out in recent years.

Minnetonka-based Medica says that for 2021 it will expand its service area for Medicare Advantage plans in Minnesota from 29 counties to 47 counties. Medica will continue to sell Medicare Cost plans in 21 counties across the state.

Allina Health Aetna is expanding its Medicare Advantage service area in Minnesota from 12 to 20 counties, said Britta Orr, the insurer's chief Medicare officer. The health plan is a joint venture between the Minneapolis-based Allina Health System and the national carrier Aetna, which is adding 115 counties to its service area across the country.

Overall, Aetna says it will sell health plans in 1,793 counties next year. At UnitedHealthcare, the 271 new Medicare Advantage counties will bring the total nationwide service area to in 2,117 counties next year. New counties in Minnesota will mean residents of 50 counties here can purchase Medicare Advantage plans from UnitedHealthcare.

About 36% of the 68.6 million people eligible for Medicare opt for benefits through a Medicare Advantage plan and the market share has been growing, says Mark Farrah Associates, a Pennsylvania-based market research firm. UnitedHealthcare in March was the largest Medicare Advantage carrier with about 26% of the market as of March, the consulting firm says; last year, United also was the nation's largest Medicare Supplement carrier with about 32% of the market.

This is a developing story. Check back for updates.

Christopher Snowbeck • 612-673-4744

Twitter: @chrissnowbeck

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