A new report by an industry group representing Medicare Advantage plans predicts the number of seniors enrolled in those plans will increase more than 50% over the next 30 years.
Better Medicare Alliance estimates 85 million Americans will be enrolled in MA plans by 2050 compared to a little more than 56,000 today. The group estimates 52% of seniors will be enrolled in MA plans by 2026, outnumbering traditional fee-for-service plans for the first time. MA plans have become popular with seniors because they tend to be less expensive than traditional Medicare plans and many provide a number of supplemental benefits, such as home care and nonmedical transportation.
The report found the plans save seniors approximately $2,000 in out-of-pocket costs and premiums annually compared to traditional plans. That is in line with estimates that ATI Advisory outlined in a report on MA costs earlier this year. However, the two reports differ on the number of plans offering supplemental benefits. The Better Medicare Alliance Report said 99% of MA plans offer supplemental benefits, while ATI Advisory puts that number closer to 25%. ATI Advisory doesn’t include hearing, dental, vision or fitness benefits.
Better Medicare Alliance also reported a 94% satisfaction rate among plan enrollees.
“More than facts and figures on a page, this report is a testament to what policymakers and advocates can do when they put beneficiaries first — and what can be achieved by protecting and strengthening this well-working health care success story,” Better Medicare Alliance President and CEO Mary Donahue said in a statement.
Despite their growing popularity with seniors, MA plans have come under increased scrutiny. A recent report by the government watchdog Office of Inspector General accused the plans of delaying or denying services that are covered by Medicare. Last month, witnesses before the House Energy and Commerce subcommittee told lawmakers the plans are falling short in providing care to seniors.
