Medicare Advantage plans can expect to see a significant increase in enrollment through the remainder of the decade, as they are expected to cover more than 50% of all Medicare beneficiaries by 2030, according to the Better Medicare Alliance.1 Currently, MA covers 42% of Medicare beneficiaries, with 26 million members as of early this year.
Increasing competition and a projected doubling of the over-65 age bracket in the US in the coming decades are expected to reshape the MA landscape. These changes suggest plans that want to tap the MA market should get their offerings up and running quickly.
Benefit design is one way to stand out (Separate Your Medicare Advantage Plan from the Herd).2 Already, about 90% of MA plans offer wellness, dental, vision, or hearing coverage – benefits that are not available in traditional Medicare – and about 68% offer all four. Meanwhile, more plans are offering supplemental benefits specifically designed for chronically ill members or to address social determinants of health. This is an important draw, as MA enrollees have higher rates of clinical and social risk factors than enrollees in traditional Medicare.
The report found that 52.7% of Medicare Advantage beneficiaries live below 200% of the Federal Poverty Level, compared with 39.1% of beneficiaries in traditional Medicare, and cost savings may be fueling interest in MA. The BMA found that MA beneficiaries spend $1,640 less per year on healthcare than those in traditional Medicare.
Along with unique offerings to address chronic ailments and SDOH, plans can benefit from designing offerings that target more diverse populations. The report found that as the MA population grows, it is also becoming more diverse. Minorities make up 33.7% of MA enrollees, compared with 16% of enrollees in traditional Medicare, with Hispanic members making up the largest share, followed by non-Hispanic Black enrollees.
Additional findings from the report include:
- 96% of MA beneficiaries have access to at least one zero-dollar-premium plan
- MA beneficiaries have a 98% satisfaction rate with their plans
- MA has 43% fewer avoidable hospitalizations
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- State of Medicare Advantage. Better Medicare Alliance. May 2021. https://bettermedicarealliance.org/wp-content/uploads/2021/05/BMA-State-of-MA-Report-2021.pdf
- Separate your Medicare Advantage plan from the herd. RAM Technologies. 2021