Medicare Advantage enrollment has doubled over the past decade, and about 45% of the Medicare population has opted for Medicare Advantage, according to new data Report Provided by the Alliance for Better Health Insurance. Medicare Advantage is a type of health insurance that provides Medicare benefits through private sector health insurance companies.
The Better Medicare Alliance is a research and advocacy group that supports Medicare Advantage. The annual report compiles research and data on Medicare Advantage and its demographic and enrollment trends.
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About 45% of the Medicare population chooses Medicare Advantage over fee-for-service, and the Better Medicare Alliance estimates that by 2026, half of all Medicare-eligible beneficiaries will choose Medicare Advantage.
Of those enrolled in Medicare Advantage, 33.7% identified as a racial or ethnic minority, compared with 16% for Medicare fee-for-service. Since 2013, Medicare Advantage enrollments of minority beneficiaries have increased 111 percent, the report said.
More black and Latino Medicare beneficiaries are enrolled in Medicare Advantage: 53% of Latino beneficiaries, 49% of black beneficiaries, 34% of white beneficiaries and 31% of other racial beneficiaries.
The majority of those enrolled in Medicare Advantage chose the Medicare Advantage-Prescription Drug plan, 90.8%. That includes their prescription drug coverage in a single plan, the report said.
Part of the increase in Medicare Advantage plan enrollment was due to increased access to the plan, the report said. The number of plans offered has doubled over the past decade to 3,834 by 2022, and 99.7% of beneficiaries have access to at least one Medicare Advantage plan. For those in the metro area, 99.9% of beneficiaries had access to at least one plan, compared to 98.4% of beneficiaries in the non-metro area.
affordability
Medicare Advantage plans are generally more affordable than fee-for-service plans, the report found. Those in the Medicare Advantage plan spent $1,965 less on out-of-pocket costs and premiums.
The average monthly premium for Medicare Advantage is $19, the lowest in 15 years, and about 10% lower than the average Medicare Advantage premium in 2021, the report found.
Additionally, Medicare Advantage provides beneficiaries and the federal government with $32.5 billion in additional value annually. It does this by reallocating savings from providing Medicare-covered benefits for less money, the report said. It also covers all Medicare-covered benefits at 24% less than fee-for-service.
result
Of those enrolled in a Medicare Advantage plan, 94% said they were satisfied with their coverage, the report said.
Compared with beneficiaries using fee-for-service, these beneficiaries had a 43% lower avoidable hospitalization rate in all conditions. In 2020, during the Covid-19 pandemic, Medicare Advantage beneficiaries experienced a 19% lower hospitalization rate and lower in-hospital mortality compared to fee-for-service Medicare beneficiaries.
Medicare Advantage members were also 21 percent more likely to see a doctor within 14 days of discharge, the report found.
“With 94% beneficiary satisfaction, nearly $2,000 in annual consumer savings, better health outcomes, and lower government spending per beneficiary, Medicare Advantage has proven its value to seniors and the healthcare system, “Mary Beth Donahue, president and CEO of the Alliance for Better Health Insurance, said in a statement. Press Releases.
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