Growth in Special Needs Plans (SNPs) Drives Medicare Advantage Enrollment
Special needs plans (SNPs) remain a significant growth area within Medicare Advantage (MA), despite some insurers scaling back their MA participation.
According to a Kaiser Family Foundation analysis, SNPs account for approximately half of MA enrollment growth since 2024, with 21% of 2025 MA enrollees choosing these plans. Major insurers including UnitedHealthcare, Humana, Aetna, and Centene have expanded their SNP offerings in the current open enrollment period, reflecting continued market confidence in these specialized products.
Chronic condition SNPs (C-SNPs) are a notable driver of this trend, particularly packaged plans addressing cardiovascular disease, congestive heart failure, and diabetes. This segment shows robust growth, with a year-over-year increase of 66%, demonstrating demand for condition-specific value-based care models. Startups like Zing Health have emphasized C-SNP delivery through technology-enabled approaches to improve health outcomes for underserved seniors.
Dual-eligible SNPs (D-SNPs), designed for beneficiaries qualifying for both Medicaid and Medicare, continue to grow as well, though at a moderated pace reflecting market saturation. The growth in D-SNPs is largely concentrated in plans that offer aligned Medicaid and Medicare enrollment, which facilitates coordinated care and benefit integration.
Conversely, institutional SNPs (I-SNPs), which serve individuals with long-term care needs, are experiencing declines overall. Provider-led I-SNPs have shown some growth, while non-provider-led plans face challenges, signaling a potential shift in how long-term care needs are managed within SNP frameworks.
As the Medicare Advantage landscape evolves, SNPs persist as a key segment with the potential to deliver specialized, value-based care to high-need populations. These trends impact insurer product strategies, regulatory considerations, and healthcare delivery innovation focused on improving outcomes for chronic condition and dual-eligible beneficiaries.