| Description |
In 2021, the number of eligible Medicare beneficiaries exceeded 62 million, and 42% of those beneficiaries were enrolled in a Medicare Advantage or MA plan, offered by a private insurer (Freed, et al., 2021). Enrollment in Medicare Advantage plans has been on the rise since 2004, increasing from 6 million, to an enrollment of 26 million in 2021; projections suggest that the percent of Medicare beneficiaries enrolled in a Medicare Advantage plan, by 2030, will increase to 51% (Freed, et al., 2021). Known by a variety of names, Medicare Advantage plans have been in place since the inception of Medicare (Patel & Guterman, 2017). Often referenced as MA plans, they are available to Medicare eligible members, in lieu of traditional Medicare, through private insurance companies, and differ from traditional Medicare because they offer additional benefits and are often more affordable. Not only have MA plans become increasingly more popular with Medicare eligible members, as referenced above, the number of private insurance companies offering Medicare Advantage plans has also increased (Freed, et al., 2021). Insurers have found the reimbursement from the federal government to be advantageous, and with a focus on preventative services and care management, it has made for a profitable business. MA plans have also been very innovative in benefit design and in meeting the needs of at risk populations. The popularity of Medicare Advantage plans, when compared to traditional Medicare, is the result of availability, convenience, benefits, and cost. |
