Devoted Health and the Medicare Advantage Market
Devoted Health aimed to build the next-generation Medicare Advantage health insurance plan, taking advantage of tech solutions to ensure cost containment for the company’s bottom line— and a high-quality health care plan that treated members like family. The technology platform would be critical to coordinate the logistics of patient-centered care, identify and recruit the highest-quality providers, and keep a tight control on operating and administrative costs.
The case discusses the cost calculations and competitive landscape in the fast-moving Medicare Advantage market, where start-ups and big insurers were jostling to provide America’s seniors with health plan options beyond the basic Medicare coverage. This type of plan covered one-third of Medicare beneficiaries in 2019, and this figure was projected to grow to 42 percent by 2028. To generate profits, Medicare Advantage companies focused on high-touch patient care to keep patients healthy and out of the hospital. In Devoted’s operating model, high-tech efforts and predictive modeling would also be key to its successful expansion to new markets.