Integrated healthcare becomes the go-to model for Brazilian insurers

In 2016, at the height of what was Brazil’s worst economic crisis on record at the time, the population’s loss of purchasing power took a heavy toll on the health insurance sector. When Covid-19 hit four years later, one expected a perfect storm for private healthcare: increasing costs due to the health emergency and fewer customers due to increased unemployment. 

While the former did come to pass, the latter forecast couldn’t be further from the eventual outcome. Most recent data published by private health regulator ANS shows the sector reached its highest number of customers since 2016 pre-crisis highs. Now, 48.41 million Brazilians have access to private healthcare — nearly one-quarter of the population.

The performance is even more surprising considering premium hikes enforced this year. After Congress banned health plans from jacking up their prices during 2020, consumers were hit with two adjustments in one this year.

Breaking down the numbers, corporate plans led the way, adding 935,000 lives in the first half of the year. Individual plans lost 117,000 customers over the same period, while the affinity segment...