Insurtech Investor Talks Highlight Promise of MA Despite Headwinds

During presentations at recent investor conferences and meetings, three of the industry’s so-called “insurtechs” expressed a notable degree of confidence in their ability to profit from the Medicare Advantage space, even as their more diversified and established publicly traded peers struggle with increased utilization and diminishing reimbursement. That’s largely because of the investments they’ve made in proprietary technology that is driving care coordination.

In opening remarks at the company’s June 10 annual stockholder meeting, Clover Health Investments, Corp. CEO Andrew Toy touted year-over-year improvement in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) — the company recorded a profit for the first time — “all in the same year that the greater Medicare Advantage ecosystem took a step back.” Referring to its cloud-based, artificial intelligence-powered clinical support tool Clover Assistant, he told investors, “The fact that our entire clinical management model is driven by technology is something that we believe to be a significant moat for us and something that bodes well for our business as we move into a technology-centric, AI-accelerated world.”

© 2024 MMIT
Lauren Flynn Kelly

Lauren Flynn Kelly Managing Editor, Radar on Medicare Advantage

Lauren has been covering health business issues since the early 2000s and specializes in in-depth reporting on Medicare Advantage, managed Medicaid and Medicare Part D. She also possesses a deep understanding of the complex world of pharmacy benefit management, having written AIS Health’s Radar on Drug Benefits from 2004 to 2005 and again from 2011 to 2016. In addition to her role as managing editor of Radar on Medicare Advantage, she oversees AIS Health’s publications and manages the health editorial staff. She graduated from Vassar College with a B.A. in English.

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