Press ReleasesBLOG POST: More seniors switching to MA but high-needs beneficiaries turning back to traditional Medicare

New study shows, more Medicare beneficiaries switched from traditional Medicare to Medicare Advantage in 2020 than vice versa for the fourth year in a row.¹

However, high-need beneficiaries were more likely to switch from MA to traditional Medicare, according to the study, published in JAMA Health Forum. The study found that:

• In 2017, 3.7% of beneficiaries switched from MA to traditional Medicare, compared with 5.3% switching from traditional Medicare to MA.²
• In 2020, 2% of beneficiaries switched from MA to traditional Medicare, compared with 6.8% switching from traditional Medicare to MA.²

Switching is increasingly contributing to new MA enrollment growth, from 49% in 2016 and 67% in 2020. Overall, MA’s share of Medicare enrollment increased from 19% in 2007 to 46% in 2021 and is expected to make up more than half this year.²

The study uncovered differences in switching trends among various populations:¹

• Switching in either direction for Medicare-only and dual-eligible beneficiaries tends to decline as beneficiaries age.
• Black and Hispanic beneficiaries had higher switching rates than white beneficiaries and were more likely to switch from traditional Medicare to MA in 2016 and 2020.
• In 2020, Black (13.4%) and Hispanic (13.5%) beneficiaries were more than twice as likely to disenroll from traditional Medicare, compared with white beneficiaries (5.9%).
• Mortality status was also a factor, with more beneficiaries in their last year of life likely to disenroll from MA (5.4%) in 2016 than from traditional Medicare (2.6%). In 2020, 3.1% of beneficiaries in their last year of life disenrolled from MA and 5.1% disenrolled from traditional Medicare.

The researchers noted that switching may also be linked to certain factors, including changes in health status, availability of specific services under MA and cost considerations.²

MA plans that offer innovative supplemental benefits and design plans and outreach that resonate with the populations most likely to switch are likely to enjoy a bigger share of the MA market as it continues to grow.

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^References

1. Bailey, V. Traditional Medicare to Medicare Advantage switching rates grew in 2020. Health Payer Intelligence. Jan 3, 2023. https://healthpayerintelligence.com/news/traditional-medicare-to-medicare-advantage-switching-rates-grew-in-2020
2. Unuigbe, A., Cintina, I., Koenig, L. Beneficiary switching between traditional Medicare and Medicare Advantage between 2016 and 2020. JAMA Health Forum. Dec. 29, 2022. https://jamanetwork.com/journals/jama-health-forum/fullarticle/2799962