Dive Brief:
- Enrollment in Medicare Advantage plans is expected to increase in 2015, hitting an all-time high. Costs have also remained stable, with premiums decreasing by 6% between 2010 and 2015 and next year, more plans will be offering benefits like dental and vision coverage.
- The premiums health plans submitted for next year would increase by $2.94 per month. But the Centers for Medicare and Medicaid estimated in a press release that the increase will be closer to $1.30 as beneficiaries select lower-cost options. CMS said that 61% of enrollees will have no increase in premiums.
- According to CMS, approximately 40% of Medicare Advantage plans will receive at least four stars on its five-star rating chart in 2015. Nearly 60% of enrollees take part in these plans.
Dive Insight:
Medicare Advantage provides supplemental coverage to about 30% of Medicare beneficiaries. While the plan is popular, there are problems that could slow its growth in the coming years. It has traditionally reimbursed at much higher rates than traditional Medicare, but the Affordable Care Act cut some of those funds to reduce the disparity between the two.
Dan Mendelson, CEO of Avalere Health, released a statement after the data was released saying that the program will face pressure as a quality demonstration that paid provider bonuses will end in 2015.
"Next year will be a pivotal year for the Medicare Advantage market—the confluence of payment pressures and realignment in the provider markets is likely to have a significant impact on plan participation decisions and benefit design," he said in a statement.