Medicare Advantage plans continue to flourish. As of January 1, 2016, which reflects applications accepted through December 4, 2015, enrollments were up by nearly 900,000 participants, compared to the same period a year earlier. This means that Medicare Advantage (MA) enrollments will soon surpass 17.5 million beneficiaries. While numbers were not final at the beginning of 2016, the initial data indicates a 31% penetration for MA. That's up from 28% a few years ago. Where this growth comes from may surprise you.
Where Are New Members Coming From?
Aside from the 10,000 baby boomers turning 65 every day, the growth in Medicare Advantage Plan enrollments has also been the result of three factors:
- Medicare beneficiaries switching from traditional Medicare to Medicare Advantage plans.
- The tendency of low-income seniors to select Medicare Advantage plans over other Medicare coverage options.
- The tendency of minorities to select Medicare Advantage coverage over other forms of coverage.
It's an interesting caveat that the three factors occur in highly established MA service areas with high Medicare Advantage plan penetration and a high number of available MA plans in the market.
There are three pivotal studies that effectively make the case for these assertions. We combed through each and compiled key insights that indicate what's fueling the growth of Medicare Advantage plans.
We've also highlighted key takeaways you can apply to start growing your own Medicare Advantage plan.
- The key factors driving Medicare Advantage growth
- Which member groups have the highest participation rates
- The greatest Medicare Advantage marketing opportunities