Medicare Advantage Sees Higher Enrollment

September 19, 2022

Medicare Advantage is an essential resource and a valuable supplement for its over 26 million enrollees that use it in their plan. The private insurance supplement should complement insureds’ existing coverage under Medicare and offer additional benefits such as prescription drugs, vision services, and dental visits. With the cost of Medicare rising and healthcare expenses rising, it’s unsurprising that Medicare Advantage enrollment is on the rise. Any business that benefits from Medicare funding should know the following four reasons why more people are obtaining insurance coverage through Medicare Advantage.

Lower Healthcare Expenses

One of the tremendous benefits of a Medicare Advantage plan is its lower per-person expenditure compared to traditional Medicare coverage. There are plenty of reasons for this. However,

some have attributed it to the plan’s emphasis on preventive services. Recent reports, however, indicate that as enrollment in Medicare Advantage increases, its spending per beneficiary has increased, too, and may eventually outpace traditional Medicare spending levels. It is more likely to occur if the criteria for Medicare eligibility become more exclusionary.

Increasingly Diverse Enrollees

Another factor impacting the growth of Medicare Advantage is the increasingly diverse population it attracts. In previous years, enrollees were often racially and demographically homogenous, but that’s changed as Medicare Advantage sellers have increased marketing to a more diverse group of beneficiaries. Traditional Medicare serves a lower percentage of people of color than Medicare Advantage plans. Most enrollees — over 60% — are women and have a gross income of less than $30,000 per year. As members of these populations seek affordable care options, the popularity of Medicare Advantage continues to grow.

Access to More In-Network Care

Although Medicare offers several network options, enrollees often still find that their preferred providers are not part of the plan. It can be frustrating for elderly insureds who simply want to see the doctor they’ve become accustomed to. Medicare Advantage plans allow users to expand their options and access a new network of providers. There is often an overlap with an insured’s current Medicare network, but the additional options can increase the quality of care and make certain services more accessible.

Coverage for Preventive Services

What does Medicare cover when it comes to preventive services? Traditional Medicare coverage includes a variety of exams, screenings, and lab tests that people can use to diagnose cancers and infectious diseases. There are also health monitoring programs and counseling services that can empower insureds to take control of their health. Medicare Advantage offers coverage for all of the preventive services included in Part A and Part B. Still, it also extends coverage to dental preventive care, making an Advantage plan the preferred choice for many seniors in the U.S.

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