Final 2019 Annual Election Period results demonstrate continued
growth in the Medicare Advantage program, with overall membership climbing 7%
from 21.5 million a year ago to 22.6 million. Changes in enrollment this year
were likely due to a combination of factors, from the elimination of Medicare
Cost plans in certain markets to new supplemental benefits that sweetened the
deal for consumers, industry experts observe.
"Nationally it was a big year for Medicare Advantage," says Cary Badger, principal with HealthScape Advisors. "And what was unique about this year was…a large portion [of the MA growth] was coming from both the group and the individual plans."
The February data reflecting enrollments accepted though Jan. 4 also showed year-to-date MA enrollment growth of 4.3%. Securities analyst A.J. Rice noted this was "modestly below" last year's year-to-date membership increase of 4.9%.
One of the market disruptors was the final phasing out of Medicare Cost plans, which the federal government required insurers to eliminate in counties where two or more MA plans are competing.
Switch rates are also up, and that may be due to the availability of new supplemental benefits.
"The primary driver of switching is usually change, such as changes in the network or coverage and premiums…but now what we're seeing is that seniors are shopping for better coverage rather than just going to the market to see if they can get a better deal," remarks Badger.
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