Health Insurers Feeling the Pain as Older Patients Flock to Doctors

Oh Giggity Giggity! Health Insurers in a Pinch

Looks like health insurers are in a sticky situation as older patients are heading to the doctor in droves. CVS and Humana both cut their profit outlooks blaming the surge in medical costs. It seems like the old folks are finally catching up on all those procedures they've put off during the pandemic.

Medicare Advantage: Suffering from Success?

Medicare Advantage has been a great way for insurance companies to rake in the dough. With more than half of Medicare beneficiaries enrolled in these plans the industry has been booming. But it looks like the runaway costs are starting to catch up. Guess it's not all fun and games!

CVS Feels the Pain

CVS executives revealed that their insurance division saw higher rates of outpatient care including those hip and knee surgeries. They also noticed an uptick in the use of supplemental benefits like dental and vision care. Looks like all those seniors are getting some extra TLC.

Humana Takes a Hit

Humana on the other hand saw an even bigger jump in medical costs. They blamed it on higher outpatient activity and an unexpected increase in inpatient care. Ouch! Looks like Humana is feeling the pain more than its competitors.

Are Health Insurers Doomed?

The big question now is how a new policy called the 'two midnight rule' will impact these insurance companies. Starting this year Medicare Advantage plans have to cover hospitalizations at the higher inpatient rate if doctors predict a stay beyond two midnights. It's a game changer that could have a major impact on the industry.

Could 23andMe Survive the Storm?

In other news genetic testing company 23andMe is going through a rough patch. They reported lower revenue and are considering splitting up their consumer and therapeutics businesses. Looks like their stock price needs a little boost. Maybe they should try a DNA test to figure out what's wrong.