CMS Forecasts Stronger MA Market as Plans Offer More Choices, New Benefits

by Lauren Kelly 

New data from CMS signals an increasingly robust Medicare Advantage market in 2019, with significantly more plan choices per county that are likely driven by a combination of new entrants, geographic expansions and the elimination of meaningful difference requirements. And with premiums continuing to decline, CMS expects MA penetration to reach 36.7% in 2019, compared with the current rate of 34.3%.

According to data released alongside the 2019 MA and Part D landscape files, the average number of MA plan choices per county will be 34, up from approximately 29 plan choices per county in 2018 and 27 in 2017. More than 91% of Medicare eligible beneficiaries will have access to 10 or more MA plans in 2019, compared with nearly 86% in 2018, said CMS.

While new entrants are adding to the number of MA plans, the increase is “also fueled by new offerings from long-time MAOs,” suggests Michael Adelberg, a principal with FaegreBD Consulting and a former top CMS MA official. “It will be especially interesting to see if the new benefit flexibilities coupled with elimination of the meaningful difference review resulted in MAOs offering more products in legacy service areas.”

CMS reported that nearly 270 MA plans will be providing an estimated 1.5 million enrollees with new types of supplemental benefits, including expanded health-related supplemental benefits (e.g., adult day care services, in-home and caregiver support services) and reduced cost sharing and additional benefits for enrollees with certain conditions.

While most plans didn’t have enough time to operationalize the new benefits for 2019, that won’t be the case in 2020, says Kirk Twiss Clear View Solutions, LLC. “There is a lot of interest, and CMS has said they’ll issue further guidance this year, so hopefully the guidance will be in place before the planning cycle starts for the 2020 benefits and bids,” says Twiss. 

From RADAR on Medicare Advantage

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