CVS Health Corp., one of the providers of medications and Medicare services throughout the United States, announced recently that it is going to remove at least 10% of the beneficiaries enrolled in its Medicare Advantage plans from its services. The chief financial officer, Tom Cowhey, stated at a conference on Tuesday, May 14, that the company has decided to prioritize profit recovery after earning about $900 million below what its shareholders had projected.
This entails reducing benefits for 10% of its Medicare Advantage beneficiaries or users provided by CVS. Data from the company itself indicates that it has a total of 4.2 million beneficiaries or members as of today, which would mean that around 420,000 individuals will be left without medical coverage starting in 2025. Everything indicates that CVS had underestimated medical care benefits by $900 million in its medical cost budget. Of these $900 million, approximately $400 million were attributed to higher utilization of outpatient services, outpatient pharmacy, and behavioral mental health.
CVS faced criticism for a $250 million difference within the $900 million, where Cowhey mentioned that the company miscalculated seasonality. Upon further investigation, hospital services for respiratory illnesses exceeded CVS’s expectations significantly, reflecting similar levels to those in 2018 and 2019. A decrease in seasonal respiratory illnesses is expected in the coming quarters.
Other Medicare Advantage Providers Where You Can Enroll
If you are among the 420,000 individuals who will be disenrolled from CVS’s Medicare, here are some other options you have for nationwide coverage.
AARP Medicare Advantage
For instance, you can opt for AARP Medicare Supplement, a supplemental Medicare insurance plan offered by the American Association of Retired Persons (AARP). It offers a wide range of plans with different coverage levels to complement your original Medicare. The plans may include coverage for Medicare Part deductibles, copays not covered by hospitals, and even out-of-network medical care. AARP Medicare Supplement also offers additional benefits like fitness plans and discounts on products and services.
UnitedHealthcare Medicare Advantage
UnitedHealthcare Medicare Advantage is another major healthcare insurance provider in the United States and offers a wide range of Medicare Advantage services. UnitedHealthcare Medicare Advantage plans include HMO, PPO, and Special Needs Plans (SNP).
It also offers plans that include prescription drugs, dental care, vision, hearing, and even wellness services. UnitedHealthcare also offers a national network of providers and plans with fairly accessible premiums.
Humana Medicare Advantage
Humana Medicare Advantage is another option you could consider if you are excluded from CVS plans. Among the benefits that Humana offers are HMO, PPO, and SNP plans.
These plans can cover prescription drugs, dental care, vision, hearing, as well as wellness services. Humana also has an extensive network of providers and offers plans with competitive premiums.
Cigna Medicare Advantage
Cigna Medicare Advantage is a global insurance company that offers a variety of Medicare Advantage plans and other types of medical coverage plans tailored to all needs and budgets. Cigna Medicare Advantage plans include HMO, PPO, and SNP plans. You can inquire about plans that include prescription drug coverage, dental care, vision, hearing, as well as general wellness services.
Aetna Medicare Advantage
Complete this quintet of companies with Aetna Medicare Advantage, a company with mostly U.S. coverage whose plans offer HMO, PPO, and SNP options.
Inquire about plans that include prescription drug coverage, dental care, vision, hearing, and general wellness services. Aetna also has an extensive network of providers and offers plans with competitive premiums.
