Report offers a comprehensive profile of enrollment growth,
beneficiary demographics, affordability trends, health care quality, and
consumer attitudes
Washington, D.C. – Better Medicare Alliance (BMA), the leading research and advocacy
organization supporting Medicare Advantage, unveiled its State of Medicare Advantage 2020 report, showing
greater diversity, lower costs, and better outcomes in Medicare Advantage, as
compared to Traditional Medicare.
The report offers a comprehensive picture of
Medicare Advantage today – from beneficiary demographics to consumer savings
and satisfaction, health outcomes, and projections for the future.
“Policymakers deserve complete, timely information on Medicare
Advantage – particularly as enrollment continues to grow as more beneficiaries
make an active choice for this coverage option,” said Allyson Y.
Schwartz, President and CEO of the Better Medicare Alliance. “Better
Medicare Alliance continues to do what no one else has by bringing all of the
latest findings together in a single, easy-to-read report to deliver a
one-of-its-kind, comprehensive account of the state of Medicare Advantage
today.”
Schwartz continued, “Our report – aided by research from a wide array of independent
sources – reveals that Medicare Advantage is markedly more diverse in
beneficiary population than its Traditional Medicare counterpart, with 28
percent minority representation in Medicare Advantage compared to 21 percent in
Traditional Medicare. Medicare Advantage beneficiaries also enjoy an average
savings of $1,598 per year over Traditional Medicare, fewer avoidable
hospitalizations, and a record-high 99 percent satisfaction rating. The state
of Medicare Advantage is strong, and its success offers timely insights for
policymakers on the importance of value-based, integrated care in health
financing and care delivery.”
Key Findings from the Report Include:
·
Enrollment
Trends: Medicare Advantage
enrollment has nearly doubled over the last decade and grown by over 30% since
2017 alone. Medicare Advantage is projected to increase to nearly 51% of total
Medicare enrollment by 2030.
o
Medicare Advantage
enrollment growth has been spurred by high consumer satisfaction, strong
enrollment growth in employer-sponsored retiree plans (EGWPs) as well as
Special Needs Plans (SNPs).
·
Beneficiary
Demographics: Medicare Advantage
is the preferred option for those who are low-income and for racial and ethnic
minorities. Medicare Advantage enrollees also have higher rates of clinical and
social risk factors.
o
50% of Medicare
Advantage beneficiaries live on annual incomes of less than $24,500 a year,
compared to 40% in Traditional Medicare. 21% of Medicare Advantage
beneficiaries are also eligible for Medicaid, compared to 16% in Traditional
Medicare.
o
28% of Medicare
Advantage beneficiaries are racial minorities, compared to 21% in Traditional
Medicare. Latinx representation in Medicare Advantage is double that of
Traditional Medicare (12% versus 6%). African American representation is 50%
higher in Medicare Advantage than in Traditional Medicare (12% versus 8%).
o
Medicare Advantage
beneficiaries are 64% more likely to enroll in Medicare due to disability, have
a 57% higher rate of serious mental illness, and have 16% higher rate of
alcohol, drug, or substance abuse.
·
Access
and Affordability: In
2020, 99% of Medicare beneficiaries have access to at least one Medicare
Advantage plan, with on average, 39 plan choices per county.
o
When comparing average
annual out-of-pocket costs, Medicare Advantage beneficiaries save $1,598 more
than those in Traditional Medicare.
o
The out-of-pocket costs
associated with inpatient facility stays is seven times higher for
beneficiaries in Traditional Medicare than those in Medicare Advantage ($126
versus $15).
·
Supplemental
Benefits: Over 80% of Medicare
Advantage plans offer at least a vision, hearing, wellness, or dental benefit
and more than half of plans offer all four benefits.
o
Vision benefits are the
most commonly offered additional benefit, with about 94% of plans including or
offering a vision benefit.
o
In 2020, 619 Medicare
Advantage plans are offering Special Supplemental Benefits for the Chronically
Ill (SSBCI).
o
Health
Outcomes: Medicare Advantage
beneficiaries had lower rates of potentially avoidable hospitalizations than
Traditional Medicare beneficiaries.
o
A large-scale report
that examined care for individuals with multiple chronic conditions found that
Medicare Advantage beneficiaries experienced 23% fewer inpatient hospital stays
and 33% fewer emergency room visits than in Traditional Medicare.
o
Another study showed the
risk-adjusted 30-day readmission rate among Medicare Advantage beneficiaries
was 13% to 20% lower than the rate in Traditional Medicare.
o
Another recent study
found value-based contracting in Medicare Advantage led to a 32% lower risk of
death.
·
Consumer
Satisfaction: A May 2020 survey of
Medicare Advantage beneficiaries found a 99% satisfaction rate with Medicare
Advantage, including 64% who identify as “very satisfied.”
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