Study: Medicare Advantage Enrollment on the Rise

Enrollment in Medicare Advantage jumped 9.7 percent to 14.4 million beneficiaries in 2013 from last year and has increased 30 percent since 2010, according to a report by the Kaiser Family Foundation.

The privately administered, capitated health insurance plan for elderly and disabled Americans now accounts for 28 percent of total Medicare enrollment, and historic fee-for-service Medicare plans account for 72 percent of the Medicare trust's beneficiaries.

Participation in Medicare Advantage varies widely between states. Just under half of Minnesotan Medicare beneficiaries are in MA plans, whereas less than 1 percent of eligible Alaskans are enrolled in the program, according to the report.

Experts at one time speculated the program's growth would stagnate thanks to predicted payment changes included in the federal healthcare reform law, but the study's authors found little evidence to support that argument.

Sixty-five percent of MA enrollees in 2013 are members of HMOs, versus 22 percent and 7 percent in local and regional PPOs, respectively. Just 4 percent of MA plans follow the traditional fee-for-service payment model, according to the report.

Uptake for special needs plans, which cover dual eligibles and beneficiaries with severely disabling conditions through a managed care plan, has grown to 1.6 million in 2013, though much of that growth is concentrated in nine states, with another 14 states having no beneficiaries enrolled in such managed care plans.

More Articles on Medicare Advantage:

Partnering With Payers: Key Lessons Fairview Health Services Learned
ACOs and Shared Savings Agreements: 16 Statistics
5 Points Hospitals Should Know About the 2013 Medicare Trustees Report

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