The February 2018 Medicare Advantage (MA) enrollment report is out and includes the tail end of Annual Election Period (AEP) activity.
Some interesting insights into the numbers:
There are now over 21 million MA enrollees. That’s over 35% of all Medicare beneficiaries are now enrolled, on track to hit 50% by 2025.
There are 2.6 million enrollees in Special Needs Plans (SNPs), which were just permanently reauthorized in the Bipartisan Budget Act of 2018. SNPs are the primary contracting vehicle for states to capitate dual eligibles, and with long-term care the #1 or #2 item in every state’s budget, expect this number to grow rapidly during the Trump administration, which is rubber-stamping whatever (red state) governors want.
Over 4 million in employer-sponsored retiree plans. States, counties, and municipalities are leading the way here, trying to fix their liability for retiree healthcare. These are huge groups, often 20,000+ members each.
There are now 7 million enrolled in Preferred Provider Organizations (PPOs), representing 33% of all MA members. This is the preferred product for affluent baby boomers and will explode in 2020 when the Medicare Access and CHIP Reauthorization Act (MACRA) bans sale of first-dollar coverage Medigap plans.
Large nationals like United, Humana, and Aetna offer hundreds of PPOs and are well-positioned for the MACRA change. Are you? Contact us to see how we can help.
Gorman Health Group’s summary and analysis of the 2019 Advance Notice and Draft Call Letter for Medicare Advantage and Part D is now available. Download now
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