Medicare Advantage Enrollment Growth Continues Despite Slowdown

Medicare Advantage (MA) enrollment saw a 3.9% growth during the 2024 enrollment period, reaching a total of 34.5 million enrollees, despite a slowdown from previous years when growth was between 7% and 10%. Over half of all Medicare beneficiaries are now enrolled in MA plans, highlighting the growing preference for these plans, which added approximately 1.3 million new members. Traditional Medicare also experienced an increase in enrollment, adding 200,000 new beneficiaries.

The growth in Special Needs Plans (SNP) was notable, with enrollment up 10.1%, although this was a dip compared to previous years. With demographic trends and regulatory support expected to bolster MA plans, there remains optimism among health plan executives, with a significant majority expecting stable or improved performance in the coming years. However, the number of plan options available has declined slightly, signaling changes in the market landscape.

Health maintenance organizations maintain a strong presence in the non-SNP MA market. Currently, for-profit insurers dominate MA enrollment, holding nearly three-quarters of the market. This reflects a continued trend towards MA plans, emphasizing the importance of this segment of health insurance.