Private insurers are reaping a veritable windfall from the federal government’s heavy spending on the elderly — with demand from the COVID-19 pandemic leading to more robust offerings.
Following a trend that has been growing in the past few years, both Cigna (CI) and United Health Group (UNH) announced expansions of their Medicare Advantage plans for 2021 — with Cigna expanding in 67 counties and UnitedHealth expanding in 300 counties.
In addition, Walmart (WMT) has joined in with its own insurance education services, in order to help seniors sign up for Medicare plans.
The two health insurance giants are expanding in an increasingly competitive market, dominated by players like Humana (HUM) and Centene (CNC). They are also seeing a swell of startups including Clover Health, Oscar and Bright Health.
According to Brian Evanko, Cigna’s president of Government Business, insurers are faced with a convergence of factors that include