The Medicare Payment Advisory Commission released its March 2022 "Medicare Payment Policy" report to Congress on March 15.
The report analyzes Medicare payment issues and makes recommendations to Congress.
Five takeaways from the chapter that describes recent trends in Medicare Advantage plans:
- Growing enrollment: For the third consecutive year, enrollment in Medicare Advantage plans grew by 10 percent. From July 2020 to July 2021, Medicare Advantage plans added 2.5 million beneficiaries, boosting total enrollment to 26.9 million beneficiaries. The percentage of Medicare Advantage-eligible beneficiaries who were enrolled in MA plans grew from 43 percent in 2020 to 46 percent in 2021.
- Plan availability high: In 2022, 99 percent of Medicare beneficiaries have access to at least one Medicare Advantage plan. The average Medicare beneficiary has 36 available MA plans sponsored by eight different parent organizations, both increases from 2021.
- Plan rebates at historic high: In 2022, rebates used to provide additional benefits to beneficiaries stand at $164 monthly per enrollee. Since 2020, average total rebates are 17 percent higher, standing at $24 higher monthly per beneficiary. From 2021-22, projected plan rebates allocated for lower cost-sharing decreased from 46 percent to 43 percent.
- Plan payments high: In 2022, Medicare Advantage plan payments are higher than fee-for-service Medicare payments. Total Medicare payments to MA plans average an estimated 104 percent of fee-for-service spending.
- Medicare Advantage benchmarks above fee-for-service spending: In 2022, Medicare Advantage benchmarks averaged an estimated 108 percent of fee-for-service spending, including quality bonuses. That's about the same level as in 2021. Bids also fell to 85 percent of fee-for-service, a record low.