In 2011, L.E.K. Consulting published an article entitled, “Whatever Doesn’t Kill You Makes You Stronger,” asserting that despite the many structural and regulatory threats for payers competing for Medicare Advantage members, the product would still maintain an attractive consumer value proposition for seniors and drive membership into those plans.

Now, more than 15 million seniors are enrolled in a Medicare Advantage plan and member satisfaction remains high. Medicare Advantage represents the first real “retail” health insurance market of scale, coming a full decade before the “exchange,” and making way for more markets as the number of insured increases. In this Executive Insights, L.E.K. discusses three of the structures pervasive in Medicare Advantage that are likely to be replicated in other markets, and what is next for payers to achieve success in the “retail” healthcare market.

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