The Profitable Health Insurance Industry and the Transformative Power of Partnerships

Ben H.

Hatched by Ben H.

Oct 27, 2023

3 min read


The Profitable Health Insurance Industry and the Transformative Power of Partnerships


In the first half of 2023, seven major health insurers in the United States raked in a staggering $683 billion in revenue. These profits were largely driven by taxpayer-supported programs and the pharmacy supply chain. However, this immense financial success has come at a cost. Wall Street's displeasure with these insurers has led to double-digit premium increases for American employers and families. Additionally, insurers have resorted to using AI and other tactics to deny coverage and reject legitimate claims, causing dissatisfaction among policyholders. In this article, we will explore the financial performance of these insurers, their enrollment numbers, and the potential consequences of their dominance. We will also delve into the unique partnership between Innovaccer and Evergreen Nephrology, which aims to empower nephrologists and transform kidney care.

The Financial Success of Health Insurers:

During the first six months of 2023, the seven major for-profit health insurers reported profits exceeding $40 billion on revenues surpassing $600 billion. This represents an 8.1% increase in profits compared to the same period the previous year, with revenues growing by nearly 11%. However, the decline in stock prices for these insurers, such as Molina, Humana, and UnitedHealth Group, suggests that their financial performance may not be sustainable in the long term.

Enrollment Numbers and Market Dominance:

Despite the stock price decline, several insurers experienced growth in their enrollment numbers. UnitedHealth's Medicare Advantage enrollment increased by 10%, while Cigna, CVS/Aetna, and Elevance also saw notable increases in their Medicare Advantage and Medicaid enrollments. However, Centene reported a dip in Medicare Advantage enrollment but compensated with a 7.4% increase in Medicaid enrollment. These numbers indicate that some insurers are adapting and expanding their offerings to meet the changing needs of the market.

The Influence of Pharmacy Benefit Managers:

Three major insurers, Cigna, CVS/Aetna, and UnitedHealth, dominate the pharmacy benefit manager (PBM) marketplace, controlling 80% of the market. By operating their own physician practices and clinics, they can manipulate their medical loss ratios (MLRs) to appear lower than they actually are. This financial maneuvering allows them to allocate funds strategically and maintain profitability. However, this practice may raise concerns about the transparency and fairness of the healthcare system.

The Transformative Partnership between Innovaccer and Evergreen Nephrology:

In contrast to the profit-driven approach of traditional insurers, Innovaccer and Evergreen Nephrology have joined forces to revolutionize kidney care. Evergreen Nephrology, a value-based care organization, aims to empower nephrologists and enhance the care experience for patients with kidney disease. By leveraging Innovaccer's Health Cloud and comprehensive solution suite, Evergreen Nephrology can optimize care management, physician engagement, patient engagement, referral management, and advanced analytics. This partnership exemplifies a patient-centered approach that prioritizes improving clinical outcomes and enhancing quality of life.

Actionable Advice for a Better Healthcare System:

  • 1. Advocate for Transparency: Consumers should demand transparency from insurers, including clear explanations of premium increases and coverage denials. By holding insurers accountable, individuals can contribute to a fairer and more equitable healthcare system.
  • 2. Support Innovative Partnerships: Encourage the development of partnerships, like that of Innovaccer and Evergreen Nephrology, which prioritize patient care and outcomes. These collaborations have the potential to drive transformative change and improve the overall healthcare experience.
  • 3. Stay Informed and Engaged: Stay up-to-date with industry news and developments to better understand the complexities of the healthcare system. By staying informed and engaged, individuals can make more informed decisions about their healthcare and advocate for necessary changes.


The financial success of major health insurers highlights the need for increased transparency and accountability in the industry. While these insurers continue to generate substantial profits, their stock prices suggest potential challenges ahead. Meanwhile, partnerships like Innovaccer and Evergreen Nephrology offer a glimpse into a more patient-centric and transformative approach to healthcare. By taking action, advocating for transparency, and supporting innovative collaborations, individuals can contribute to a more equitable and patient-focused healthcare system.

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