What Percentage of People Use Medicare Advantage in 2023?

Medicare Advantage (MA) enrollment has seen rapid growth over the past decade, now making up a significant portion of the total Medicare population. In 2023, over 48% of all Medicare beneficiaries are enrolled in a Medicare Advantage Plan, up from 42% just two years ago. This trends shows no signs of slowing down as millions shift from Original Medicare to MA plans each year.

Medicare Advantage Enrollment Reaches New Highs in 2023

According to data from the Centers for Medicare and Medicaid Services (CMS), over 30.7 million people or beneficiaries are enrolled in Medicare Advantage Plans as of January 2023. This represents an increase of 2.7 million enrollees from 2022. In contrast, the number of beneficiaries in traditional Medicare enrollment declined by 1.3 million over the same period to 29.5 million.

Medicare Advantage now makes up 48% of the total Medicare population, compared to just 24% in January 2010. The MA market share has grown steadily each year, indicating a clear preference among beneficiaries for private insurance plans over Original Medicare.

The factors driving this shift include expanded benefits, lower out-of-pocket costs, and innovative care coordination offered by many MA plans. Enrollees are attracted to the all-in-one structure of MA compared to navigating Original Medicare Parts A, B, and D.

For-Profit Insurers Control the MA Market

While Medicare Advantage enrollment is surging overall, the gains are heavily concentrated among for-profit insurance providers.

Over 70% of Medicare Advantage enrollees are now covered by the major national for-profit insurers like UnitedHealthcare, Humana, Aetna, and Anthem Blue Cross Blue Shield. Between 2022 and 2023, UnitedHealthcare and Humana accounted for 65% of the total growth in MA plan membership.

The share of the MA market held by non-profit Blue Cross Blue Shield plans has declined to around 15%. Other non-profit providers like Kaiser Permanente maintain a steady but small portion of the total enrollment.

Insurer	2023 MA Enrollment	Market Share
UnitedHealthcare	7.2 million	23.4%
Humana	5.3 million	17.2%
BCBS	4.5 million	14.7%
Aetna	3.7 million	12.0%
Wellcare	3.1 million	10.1%
Cigna	2.3 million	7.5%
Anthem BCBS	1.8 million	5.9%
Kaiser Permanente	1.6 million	5.2%
Other	1.2 million	3.9%
Total	30.7 million	100%

Table showing top Medicare Advantage providers and market share in 2023. Data source: Kaiser Family Foundation

This concentration among a handful of large insurers raises concerns about competition and choice for Medicare beneficiaries shopping for plans. Over 90% of rural counties have 2 or fewer MA insurers, indicating limited options in these regions.

Special Needs Plan Enrollment Up Significantly

One area of Medicare Advantage that saw particularly strong growth is Special Needs Plans (SNPs). These plans serve specific populations including dual-eligibles, people with chronic conditions, and institutionalized individuals.

SNP enrollment grew by nearly 1 million in 2023 to reach 5.4 million total enrollees. This represents 17.5% of the total MA population, up from 15.8% in 2022.

• Dual-eligible SNP plans increased enrollment by 424,000 beneficiaries, up 22% year-over-year. These plans now cover 2.9 million dual-eligible enrollees.
• Chronic condition SNPs added over 300,000 enrollees in 2023, representing 25% growth. 1.7 million MA beneficiaries are covered under chronic condition plans.
• Institutional SNPs saw a 9% bump in enrollment to 743,000 members.

The flexibility of plan benefits and integrated care coordination of SNPs appeals to these often high-need populations. SNPs can provide additional supplemental benefits targeted at a group’s unique needs.

Medicare Advantage Penetration Varies by Geography

While close to half of Medicare beneficiaries nationwide are enrolled in MA plans, the penetration rate varies significantly across states and counties.

In 2023, 22 states have over 50% of their Medicare population in Medicare Advantage Plans. This includes Florida (67%), Minnesota (63%), and Arizona (61%). In contrast, Alaska (4%), Washington DC (9%), and Oregon (28%) have relatively low MA enrollment.

Generally, areas with historically lower MA penetration saw bigger jumps in 2023. Counties with less than 30% enrollment in MA plans in 2022 averaged 6 percentage point increases this year. This indicates Medicare Advantage continues expanding into regions where Original Medicare program dominance is eroding.

Quality Ratings Impact Plan Choices

CMS rates all Medicare Advantage Plans from 1-5 stars based on performance metrics like customer satisfaction, preventive screenings, and chronic condition management. These star ratings have a significant influence on beneficiary plan selections.

Over 75% of 2023 MA enrollees are in 4- or 5-star plans, despite these plans making up just 61% of available options. Plans earning a 5-star rating for 2023 saw their membership increase by 13.8% over 2022. In contrast, plans with star rating declines grew enrollment by only 6.7%.

Higher rated plans have several advantages including the ability to market year-round and award larger bonuses to enrollees. This motivates insurers to invest in improving their quality metrics to capture a larger share of the MA market.

The Future of Medicare Advantage

Given the sustained momentum in Medicare Advantage enrollment growth seen over the past decade, all signs point to this trend continuing into the future.

By 2030, analysts project over 50 million Medicare beneficiaries will be enrolled in MA plans, making up about 60% of the total Medicare population. However, this prediction relies on insurers maintaining high satisfaction and quality scores among customers.

Additionally, as large for-profit insurers control an increasing share of the MA marketplace, regulators will need to ensure adequate competition and affordable plan choices, especially in under served rural markets.

MA plans show no indications of slowing their push to enroll the Medicare population. For 2023 at least, the percentage of people covered by Medicare Advantage has reached a new peak of 48% and counting.

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FAQS

What percentage of people use Medicare Advantage compared to traditional Medicare?

As of March 2023, around half of all Medicare beneficiaries are enrolled in Medicare Advantage, representing a significant share of beneficiaries. However, it is important to note that the percentage can vary by region and other factors.

How does Medicare Advantage enrollment compare to traditional Medicare enrollment?

Medicare Advantage enrollment has been steadily increasing over the years. In 2023, the number of Medicare Advantage beneficiaries is expected to surpass the number of beneficiaries enrolled in traditional Medicare.

What are Medicare Advantage programs?

Medicare Advantage programs, also known as Medicare Part C, are health plans offered by private insurance companies approved by Medicare. These plans provide additional benefits and coverage beyond what is offered by traditional Medicare.

How many beneficiaries are enrolled in Medicare Advantage?

As of March 2023, the number of Medicare Advantage beneficiaries is projected to be substantial, with a significant portion of eligible Medicare beneficiaries choosing Medicare Advantage over traditional Medicare.

What is the eligibility criteria for Medicare Advantage?

To be eligible for Medicare Advantage, individuals must be eligible for Medicare Part A and Part B. Some Medicare Advantage Plans may have additional eligibility requirements, such as residing in a certain geographic area.

Can individuals be enrolled in both Medicare Advantage and traditional Medicare?

Yes, it is possible for individuals to be enrolled in both Medicare Advantage and traditional Medicare. However, it is important to understand the coverage and costs associated with each option to make an informed decision.

What are the benefits of choosing Medicare Advantage?

Medicare Advantage Plans often offer additional benefits that are not covered by traditional Medicare, such as prescription drug coverage, dental and vision care, and fitness programs. These extra benefits can be attractive to many beneficiaries.

What are the benefits of choosing traditional Medicare?

Traditional Medicare provides a wide network of healthcare providers and allows individuals the freedom to see any doctor or specialist who accepts Medicare. It also offers predictable costs and may be a more suitable option for those with specific healthcare needs.

How can individuals make an informed decision between Medicare Advantage and traditional Medicare?

To make an informed decision, individuals should compare the costs, coverage, and additional benefits offered by both Medicare Advantage and traditional Medicare Plans. It is also recommended to consult with a licensed insurance agent or Medicare counselor.

Are there any enrollment data available for Medicare Advantage?

Yes, enrollment data for Medicare Advantage is regularly released by the Centers for Medicare & Medicaid Services (CMS). This data provides insights into the number of beneficiaries choosing Medicare Advantage and the trends in enrollment.