Steven Nelson, CEO of Minnetonka, Minn.-based UnitedHealth Group's UnitedHealthcare insurance arm, said an opportunity exists "to further advance the penetration" of Medicare Advantage, according to a Forbes report.
Mr. Nelson made the remarks during a second-quarter earnings call Tuesday. While roughly 35 percent of Medicare members have Medicare Advantage plans, Mr. Nelson said, "I don't think it's unreasonable to think about something north of . . . 40 percent approaching 50 percent" of seniors enrolling in Medicare Advantage plans. Mr. Nelson did not offer a timeframe for his prediction.
UnitedHealthcare's Medicare business saw revenue increase 17 percent to $16.7 billion in the second quarter of fiscal year 2017. The payer is facing federal allegations it inflated Medicare reimbursements by providing false information on members' health statuses. However, UnitedHealth rejected those allegations and requested they be dismissed.