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Enrollment Growth: What Percentage of People Use Medicare Advantage in 2023?

October 15, 20239 min read

Medicare Advantage enrollment has been steadily growing over the past decade. In 2023, over 29 million Medicare beneficiaries are expected to be enrolled in Medicare Advantage Plans, accounting for nearly 50% of the total Medicare population. This reflects a significant shift towards Medicare Advantage and away from Original Medicare.

Medicare Advantage Program Enrollment Growth

In 2022, 28.5 million Medicare beneficiaries were enrolled in Medicare Advantage Plans. This represented 46% of the total Medicare population and a 15% increase in Medicare Advantage enrollment from 2021.

For 2023, the Centers for Medicare and Medicaid Services (CMS) has reported that Medicare Advantage enrollment is projected to reach 29.5 million members. This would mean that 49% of Medicare beneficiaries would be enrolled in a Medicare Advantage Plan in 2023.

This continued growth in Medicare Advantage reflects beneficiaries' preferences for the additional benefits, reduced costs, and coordinated care that Medicare Advantage Plans can provide compared to Original Medicare.

Current Medicare Advantage Enrollment

As of February 2023, there were over 29 million people enrolled in Medicare Advantage Plans. This represents:

·        49% of the total Medicare population

·        37% growth in Medicare Advantage enrollment since 2018

·        Over 1 in 2 eligible Medicare beneficiaries choosing Medicare Advantage

In particular, enrollment in Medicare Advantage Plans grew by more than 2 million members from 2022 to 2023. This 8% annual growth rate is higher than recent years and indicates Medicare Advantage Plans are becoming even more popular.

Medicare Advantage enrollment growth is occurring nationwide, with all 50 states plus Washington D.C. seeing more seniors join Medicare Advantage Plans this year. However, states like California, Florida, and Pennsylvania with large senior populations have seen some of the highest growth in Medicare Advantage membership.

Projected Medicare Advantage Enrollment for 2023

According to estimates from the Congressional Budget Office (CBO), Medicare Advantage enrollment will continue growing in 2023 but at a slightly slower pace than 2022.

The CBO projects there will be 29.5 million beneficiaries enrolled in Medicare Advantage Plans in 2023. This represents 49% of the total Medicare population, up from 46% in 2022.

While the 8% annual growth rate in 2022 was unusually high, the CBO still expects Medicare Advantage enrollment to increase by about 4% in 2023. This would mean 1.2 million more seniors joining Medicare Advantage next year.

Driving this continued growth are factors like expanded plan choices, innovative benefits, cap on out-of-pocket spending, and CMS policies that make it easier to enroll in Medicare Advantage Plans.

Why Medicare Advantage Enrollment is Increasing

There are several key reasons more Medicare beneficiaries are choosing Medicare Advantage Plans over Original Medicare:

Additional Benefits - Medicare Advantage Plans often provide additional benefits not covered by Original Medicare like dental, vision, hearing, transportation, and fitness benefits. Approximately 92% of Medicare Advantage enrollees are in plans with supplemental benefits.

Lower Out-of-Pocket Costs - Medicare Advantage Plans have an annual limit on how much enrollees pay out-of-pocket each year for covered medical services. In 2023, the maximum out-of-pocket limit is $8,300. Original Medicare does not have an out-of-pocket spending cap.

Coordinated Care - Medicare Advantage Plans usually provide integrated care management through provider networks, leading to a more coordinated patient experience compared to Original Medicare.

Increasing Plan Options - More Medicare Advantage Plans are being offered with different premiums, benefits, and costs making it easier to find an affordable plan that meets an individual's needs.

Innovation - Medicare Advantage Plans are innovating with value-based care models, supplemental benefits, and technology tools that improve health outcomes and the patient experience.

CMS Policy Changes - CMS has implemented policies like eliminating the maximum out-of-pocket cap on supplemental benefits and allowing Medicare Advantage Plans to offer more telehealth benefits, which provides flexibility for insurers to enhance benefits.

As a result of these advantages, more Medicare beneficiaries are seeing Medicare Advantage as a better alternative for their healthcare needs. This is leading to the steady increases in Medicare Advantage enrollment projected over the next decade.

Medicare Advantage Market Share and Penetration

Medicare Advantage Plans have rapidly grown their market share over the past several years. Here is a look at Medicare Advantage market penetration nationwide:

·        In 2018, 34% of Medicare beneficiaries were enrolled in Medicare Advantage Plans

·        In 2021, 42% of the Medicare population had Medicare Advantage coverage

·        In 2022, 46% of Medicare beneficiaries are now in a Medicare Advantage Plan

·        By 2023, Medicare Advantage is projected to have 49% market share of the Medicare population

This demonstrates the growing dominance of Medicare Advantage Plans in the Medicare marketplace. Original Medicare enrollment has been flat or declining as a share of the total Medicare population as enrollment shifts to private Medicare Advantage Plans.

The Congressional Budget Office estimates that by 2030, Medicare Advantage Plans will have a 54% market penetration rate. This means over half of Medicare beneficiaries would be enrolled in some form of Medicare Advantage coverage.

As more baby boomers age into Medicare eligibility, this will drive further growth in Medicare Advantage, allowing plans to continue gaining market share.

Enrollment by Plan Type

Most Medicare Advantage enrollment is in HMO and PPO plans:

·        63% of Medicare Advantage enrollees are in HMO plans

·        31% are enrolled in PPO plans

·        6% are in the Private Fee-for-Service (PFFS) plan type

·        1% are in Special Needs Plans (SNPs) for certain chronic conditions

HMO and PPO plans have become more popular as they offer coordinated care, provider networks, and focus on preventive health. Between 2021 to 2022, HMO plan enrollment in Medicare Advantage increased by 16% while PPO plan enrollment grew by 10%.

Special Needs Plans (SNPs) are also one of the fastest growing segments. SNPs limit membership to people with specific diseases, certain dual eligibility, or institutionalized individuals. SNP enrollment is expected to continue rising as Medicare Advantage insurers offer more customized plans for these vulnerable populations.

Top States by Medicare Advantage Enrollment

Some states have much higher Medicare Advantage enrollment than others. Here are the top 5 states based on the share of Medicare beneficiaries who have enrolled in Medicare Advantage Plans:

Florida - 67% of Florida Medicare beneficiaries are in a Medicare Advantage Plan, the highest of any state

Hawaii - 61%

Minnesota - 58%

Pennsylvania - 58%

Wisconsin - 57%

States with the lowest Medicare Advantage enrollment percentages are Alaska (15%), Washington D.C. (21%), Wyoming (29%), and Oregon (30%).

But all states have seen Medicare Advantage Plan enrollment grow substantially since 2017 highlighting the nationwide momentum towards Medicare Advantage.

Is Medicare Advantage Enrollment Still Increasing in 2023?

Yes, Medicare Advantage enrollment is still growing rapidly in 2023.

The Centers for Medicare and Medicaid Services (CMS) reported that as of January 2023, over 29 million Medicare beneficiaries were enrolled in Medicare Advantage Plans. This represents a 8% increase in Medicare Advantage membership from 2022 to 2023.

In particular, a number of states with high senior populations like California, Texas, Florida, Pennsylvania, and New York saw double-digit growth in Medicare Advantage sign-ups this year.

Based on CMS enrollment data, 49% of eligible Medicare beneficiaries across the country have chosen Medicare Advantage coverage for 2023. This is up from 46% in 2022 and 42% in 2021.

Several factors are driving seniors to continue enrolling in Medicare Advantage Plans during open enrollment:

·        Expanded supplemental benefits including more health-related services and allowances for food and utilities

·        Increased access to telehealth and virtual care options

·        New plan options from insurers and PPOs with broader provider networks

·        Overall increased satisfaction with the healthcare coverage and experience Medicare Advantage Plans provide

Given the sustained trends in enrollment growth, Medicare Advantage sign-ups are expected to continue rising over the coming years as seniors find Medicare Advantage Plans are meeting more of their healthcare needs.

Projections for Medicare Advantage Growth

Looking ahead, analysts and government projections expect strong Medicare Advantage enrollment growth over the next 5 to 10 years:

·        The Congressional Budget Office estimates 49% of Medicare beneficiaries will have Medicare Advantage coverage by 2023 and 54% by 2030.

·        Private forecasters like eHealth expect over half of the Medicare population will have enrolled in Medicare Advantage Plans by 2025.

·        The Centers for Medicare and Medicaid Services (CMS) actuary projects the number of Medicare Advantage enrollees will reach 44 million by 2029.

This continued enrollment growth will be driven by an aging population, expanded plan options, increasing plan satisfaction, and favorable CMS payment policies.

Barring any major legislative overhauls to Medicare, Medicare Advantage is poised to become the dominant form of Medicare coverage within this decade. This will have major implications.

We’re Here to Help

You do not have to spend hours reading articles on the internet to get answers to your Medicare questions. Give the licensed insurance agents at Bourgeois Insurance a Call at (985) 803-8999. You will get the answers you seek in a matter of minutes, with no pressure and no sales pitch. We are truly here to help.


What is the enrollment trend for Medicare Advantage in 2023?

Medicare Advantage enrollment reaches new highs in 2023.

Who is eligible to enroll in Medicare Advantage?

 All beneficiaries who are enrolled in Medicare are eligible to enroll in a Medicare Advantage Plan.

How many beneficiaries are enrolled in Medicare?

 There are millions of beneficiaries enrolled in Medicare.

Can beneficiaries choose between traditional Medicare and Medicare Advantage?

 Yes, beneficiaries have the option to choose between traditional Medicare Part A and b or Medicare Advantage Plan options.

What is SNP enrollment?

 SNP enrollment refers to beneficiaries who are enrolled in both Medicare program and Medicaid.

How many beneficiaries are enrolled in traditional Medicare?

 A significant number of beneficiaries are enrolled in traditional Medicare.

How many beneficiaries are enrolled in both Medicare and Medicare Advantage?

 A significant number of beneficiaries are enrolled in both Medicare and Medicare Advantage.

How much did the enrollment for Medicare Advantage grow?

 The enrollment for Medicare Advantage grew in 2023.

How many Medicare beneficiaries are there in total?

 There are millions of Medicare beneficiaries in total.

What percentage of all Medicare beneficiaries are enrolled in Medicare Advantage?

 A certain percent of all Medicare beneficiaries are enrolled in Medicare Advantage.

What percentage of Medicare beneficiaries are eligible for Medicare Advantage?

 A certain percent of Medicare beneficiaries are eligible for Medicare Advantage.

How does Medicare Advantage Plan enrollment continue to grow?

 Medicare Advantage Plan enrollment continues to grow due to increased awareness and availability of plan options.

Are there any specific insurance companies that offer Medicare Advantage Plans?

 Yes, insurance providers like Blue Cross Blue Shield offer Medicare Advantage Plans.

What is the share of Medicare Advantage among Medicare beneficiaries?

Medicare Advantage has a significant share among Medicare beneficiaries.

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