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Major insurance companies like UnitedHealthcare and Humana have edged out private equity firms from investing in Medicare Advantage, according to a new report.

But investors have found pockets of profits by backing companies involved in enrolling seniors in MA plans and keeping track of them once they’re there. They’re investing in insurance brokerages, marketers, in-home assessment companies, and “insurtechs,” the report said, based on a new analysis of deals in the space since 2016.

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Overall, private equity investors made only 4 investments in Medicare Advantage-related companies last year, compared with 12 in 2022, down from a peak of 19 in 2021, per the Private Equity Stakeholder Project, a group focused on holding private equity firms accountable for their impacts on people and the planet, according to its website.

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