Trends in Medicare Advantage Enrollment. It's Rising September 2, 2022 09:40
According to Kaiser Family Foundation analysis, enrollment will increase by 8% between 2021 and 2022.
Medicare Advantage plans, which were originally a minor component of the Medicare program, are rapidly becoming the primary means through which the majority of Medicare enrollees are covered by the government program.
The Kaiser Family Foundation stated that over half (48%) of Medicare users are enrolled in Medicare Advantage plans, an 8% rise from 2021.
According to the Kaiser analysis, it translates to 28.4 million people enrolled in Medicare Advantage plans this year.
A little more than a quarter (27%) of seniors were enrolled in Medicare Advantage plans ten years ago.
There are numerous theories as to why Medicare Advantage membership is increasing. Beneficiaries benefit from the plans since they combine Parts A, B, and D. (which covers prescription drugs). Many plans also include vision, hearing, and dental care. According to some experts, the government has overpaid plans so that they can add coverage for vision, hearing, and dental care, which may make them more enticing. The fundamental trade-off for Medicare Advantage plan beneficiaries is that their coverage is limited to hospitals and providers in their network.
The Kaiser Family Foundation researchers conducted their investigation using CMS enrollment files and other sources.
According to the Kaiser researchers, two-thirds (66%) of persons enrolled in Medicare Advantage chose an individual plan. Another 18% are enrolled in plans offered by their employer or union, and 16% are enrolled in Special Needs plans, the majority of whom are dual eligible for Medicare and Medicaid.
The states with the highest proportion of Medicare enrollees enrolled in Medicare Advantage plans are dispersed across the country and do not adhere to a red-blue state pattern. According to the Kaiser data, they are New Mexico (49%), Indiana (46%), Washington (46%), Idaho (45%), West Virginia (45%), South Carolina (41%), and New Jersey (41%). Wyoming (7%), North Dakota (9%), South Dakota (12%), and Alaska (1%), have the lowest proportion of Medicare Advantage beneficiaries.
United Healthcare (7.9 million), Humana (5 million), the Blues plans collectively (4.1 million), and CVS Health have the most people enrolled in Medicare Advantage plans (3.1 million).