KPMG: Tailwinds and Headwinds for Payers in 2024

In 2023, payers experienced several major M&A deals, with CVS Health making an $8 billion purchase of Signify Health and a $10.6 billion purchase of Oak Street Health and UnitedHealth Group’s Optum acquiring Amedisys for $3.3 billion. KPMG predicts that payers will continue to be important in the U.S. healthcare system in 2024, but they will face challenges such as regulatory pressures against Medicare Advantage and pharmacy benefit managers. KPMG outlines five tailwinds, including reduced recession worries and premium increases, and five headwinds, including antitrust scrutiny and talent recruitment challenges. They also highlight potential crackdowns on pharmacy benefit managers and increased regulatory scrutiny of Medicare Advantage plans.

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