Medicare Advantage Plans have become an increasingly popular option for Medicare beneficiaries in recent years. These private health plans provide all Original Medicare Part A and Part B coverage along with additional benefits not included in traditional Medicare. Enrollment in Medicare Advantage Plans has grown substantially over the past decade. According to data from the Centers for Medicare and Medicaid Services (CMS), over 29 million Medicare beneficiaries were enrolled in Medicare Advantage Plans as of January 2023. This represents nearly half of all Medicare beneficiaries in the United States.
The number of traditional Medicare beneficiaries enrolled in Medicare Advantage Plans has increased dramatically since the Medicare Advantage program was first established in 1997. In 2023, Medicare Advantage enrollment grew to 29.5 million beneficiaries, up from 24.1 million in 2021. This represents a 22% increase in Medicare Advantage enrollment numbers over just two years. The 29.5 million Medicare Advantage enrollees in 2023 account for 53% of the total Medicare population.
Medicare Advantage enrollment growth can be attributed to several factors. Medicare Advantage Plans often provide more robust coverage with lower out-of-pocket costs compared to traditional Medicare. Most plans include prescription drug coverage along with additional benefits such as dental, vision, hearing, and wellness programs. The additional benefits not included in traditional Medicare enrollment make Medicare Advantage an attractive option for many beneficiaries.
Health insurers have also expanded their Medicare Advantage Plan offerings in recent years. More plans are available in 2023 than ever before, giving Medicare beneficiaries a wide variety of options to choose from during open enrollment. Insurers are incentivized to offer Medicare Advantage Plans since Medicare program pays the insurer a fixed monthly payment per enrollee, so enrollment growth directly benefits these private insurers.
With 53% of all Medicare beneficiaries enrolled, Medicare Advantage has a significant market share of the Medicare population. Since 2010, total Medicare Advantage enrollment has more than doubled from 14.1 million to over 29 million in 2023. Over the same time period, the percentage of Medicare beneficiaries enrolled in Medicare Advantage Plans increased from 24% in 2010 to 53% in 2023.
Medicare Advantage market share varies by state, with some states having over 60 percent of Medicare beneficiaries enrolled in Medicare Advantage Plans. States with the highest Medicare Advantage penetration include Florida, California, Minnesota, Pennsylvania, and New York. The percent of Medicare beneficiaries choosing Medicare Advantage over traditional Medicare continues to rise each year during open enrollment.
A subset of Medicare Advantage Plans, called Special Needs Plans (s), have seen rapid growth in recent years. SNPs serve specific populations, including beneficiaries dually eligible for Medicare and Medicaid, those with certain chronic conditions, and people living in nursing homes or institutions.
Enrollment in SNPs grew 15% from 2022 to 2023 to reach 7.6 million enrollees. SNP enrollment make up over one-quarter of total Medicare Advantage enrollment in 2023. The enhanced benefits and specialized care coordination provided by SNPs offers significant value for these vulnerable Medicare populations. Approximately 2.6 million Medicare-Medicaid dual eligible are enrolled in SNPs. This represents nearly half of all dual eligible, indicating the importance of SNPs for this group.
Medicare Advantage enrollment is poised for continued growth in 2023. According to CMS, over 73% of eligible Medicare beneficiaries have access to a Medicare Advantage Plan for 2023. This is up from 72% last year, meaning even more access and options for beneficiaries evaluating Medicare coverage during open enrollment.
More than 3,000 counties across the country will have access to a Medicare Advantage Plan for the first time in 2023. This expanded access will likely translate to higher Medicare Advantage sign ups during open enrollment. Additionally, new supplemental benefits like grocery allowances and meal delivery are being added b to Medicare Advantage Plans for 2023. These improved benefits could incentivize more beneficiaries to enroll in a Medicare Advantage Plan over traditional Medicare.
Overall, expectations are for Medicare Advantage beneficiaries enrollment to exceed 30 million members by the end of 2023. This would represent over half of the total Medicare population enrolled in private Medicare Advantage Plans. As long as insurers continue enhancing benefits while keeping premiums and out-of-pocket costs low, Medicare Advantage enrollment is forecasted to steadily rise for the foreseeable future.
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Over half of all Medicare beneficiaries are enrolled in Medicare Advantage Plans as of 2023, up significantly from just one-quarter a decade ago.
While a majority of Medicare recipients are now in Medicare Advantage, about one-third remain enrolled in Traditional Medicare alone. Enrollment has been shifting towards Medicare Advantage in recent years.
Based on CMS enrollment data for 2023, there are over 28 million beneficiaries enrolled in Medicare Advantage health plans.
Medicare Advantage enrollment has more than doubled in the past 10 years, growing at a significantly faster pace than both Traditional Medicare and the total Medicare population. Several million new beneficiaries join Medicare Advantage Plans each year.
In addition to coverage of all Medicare Part A and B benefits, most Medicare Advantage Plans now offer supplemental benefits such as vision, dental and hearing coverage that are not included under Traditional Medicare. Prescription drug coverage is also typically included.
Beneficiaries can generally enroll in Medicare Advantage Plans during the annual Open Enrollment period from October 15th to December 7th. Medicare Advantage enrollment is subject to approval by Medicare and plans must meet coverage guidelines.
Key advantages include potentially lower out-of-pocket costs due to maximum annual limits and inclusion of extra benefits. Medicare Advantage Plans also aim to provide seamless coverage through a single insurance plan and provider network.
Yes, the percentage enrolled in Medicare Advantage versus Traditional Medicare differs based on state, with some states having strong MA plan penetration and others retaining most beneficiaries in Original Medicare.
Main drivers include efforts by MA insurers to offer more attractive supplemental benefits and lower costs that appeal to beneficiaries. Greater rural access and expansion of special needs plans have also boosted MA membership. In a nutshell, Medicare Advantage enrollment has grown, new enrollment or Medicare enrollment continues.
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Plans are insured or covered by Medicare Advantage (HMO, PPO, and PFFS) organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment in the plan depends on the plan’s contract renewal with Medicare. We do not offer every plan in your area. Please contact medicare.gov or 1-800-Medicare to get information on all your options.
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