With the Medicare open enrollment period now underway through December 7th, many Medicare seniors will be contemplating a switch in their Medicare coverage to a Medicare Advantage (MA) plan. MA Plans are a type of health plan, increasingly popular among Medicare eligible individuals, that are offered by private insurers as an alternative to original Medicare. MA plans are offered through private insurers that contract with the federal government to provide an alternative to Medicare Part A and Part B benefits coverage. What gives MA plans their growing appeal is that private insurers have been able to bundle these Part A and Part B benefits with a variety of extra benefits, at little to no cost to enrollees.
With lower costs and added benefits, MA plans can provide exceptional value compared to Original Medicare. The added value offered by MA plans is made possible, in part, by requiring plan participants to comply with managed care protocols and to use narrower provider networks, plan features not found with Original Medicare coverage. While MA Plans can come in various insurance models, the most popular MA plans feature HMO and PPO structures. Notwithstanding managed care protocols and fewer provider choices, more and more Medicare eligible seniors are migrating to MA plans because of the value they offer. As of October 2020, across all 50 states there were about 24 million Americans enrolled in MA plans, an increase of more than 40% in the past 4 years. During this same timeframe, total Medicare enrollment across all 50 states has grown only about 10%, so faster MA plan growth has translated into a growing share of the Medicare market for Medicare Advantage plans, from just 30% four years ago to 39% today.
The growing popularity of MA plans is readily evident in the five-state Rocky Mountain region, where MA enrollment over the past four years has grown nearly 40%. Here is a closer look at Medicare Advantage enrollment growth in the Rocky Mountain region over the last four years:
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| Medicare Advantage Enrollment Growth in the Rocky Mountain Region |
| Medicare Eligible (in thousands) | MA Enrollment (in thousands) | % Growth | ||||||
|---|---|---|---|---|---|---|---|---|
| State | 2020 | 2016 | 2020 | 2016 | Eligible | MedAdv | ||
| CO | 943.6 | 829.9 | 399.9 | 274.4 | 13.7% | 45.7% | ||
| ID | 348.9 | 294.7 | 129.9 | 93.7 | 18.4% | 38.7% | ||
| MT | 238.7 | 209.6 | 48.6 | 41.6 | 13.8% | 16.8% | ||
| UT | 415.3 | 359.3 | 167.2 | 123.7 | 15.6% | 35.1% | ||
| WY | 114.4 | 98.9 | 4.3 | 2.6 | 15.7% | 67.2% | ||
| RM Only | 2,060.9 | 1,792.5 | 749.9 | 536.0 | 15.0% | 39.9% | ||
| All States | 61,584 | 55,972 | 24,050 | 16,909 | 10.0% | 42.2% | ||
For a summary look at MA plan enrollment growth in other states, check out our resource page Medicare Advantage Enrollment Growth.
