Californians enrolled in Medicare Advantage are facing slower growth in healthcare costs compared to those in traditional Medicare, according to new research from the UCLA Center for Health Policy Research.
Five notes:
1. Between 2013 and 2023, average monthly healthcare costs were $269 in counties with MA enrollment above 20%, compared with $481 in counties below 20%, or a 44% lower cost.
2. Counties with higher MA enrollment saw an 11% increase in monthly healthcare costs over the decade (from $245 to $273), while counties with lower enrollment saw a 54% increase (from $361 to $557).
3. As an example, MA enrollment in rural Amador County rose from 19.2% in 2013 to 28.6% in 2023. Over the same period, monthly healthcare costs for a single older adult dropped from $509 in 2013 to $287 in 2023, with those fluctuations closely tracking MA enrollment.
4. Healthcare costs decreased between 2013 and 2023 in Amador, Kings, Santa Cruz, Tulare and Yuba counties, all of which crossed the 20% MA enrollment mark during that period.
5. While healthcare costs declined with MA enrollment, the researchers noted that overall cost of living for older adults continues to rise in the state, driven primarily by housing, food and transportation costs.
