Enrollment Stats: What Percentage of People Are Enrolled in Medicare Advantage Plans?

Medicare Advantage has become an increasingly popular alternative to Original Medicare. Medicare Advantage, also known as Medicare Part C, allows seniors to receive their Medicare benefits through private health plans approved by Medicare. Enrollment in Medicare Advantage Plans has been steadily growing over the past decade. But exactly what percentage of Medicare beneficiaries are enrolled in Medicare Advantage Plans compared to Original Medicare?

Current Medicare Advantage Enrollment

According to the latest data from the Centers for Medicare and Medicaid Services (CMS), 28.5 million people or 51% of Medicare beneficiaries were enrolled in Medicare Advantage Plans as of January 2023. This represents a 9% increase in total Medicare Advantage enrollment from 2022 to 2023.

Medicare Advantage enrollment reached an all-time high in 2023, surpassing enrollment in Original Medicare. The growth in Medicare Advantage Plan enrollment has accelerated in recent years. Back in 2017, only 33% of Medicare beneficiaries were enrolled in Medicare Advantage Plans.

Medicare Advantage Enrollment Growth Trends

Enrollment in Medicare Advantage Plans has grown rapidly for over a decade now. Some key facts about the growth trends in Medicare Advantage Plan enrollment:

In 2010, 24% of Medicare beneficiaries were enrolled in Medicare Advantage Plans.
By 2015, 31% of Medicare beneficiaries had Medicare Advantage Plans.
In 2021, 42% of Medicare beneficiaries were enrolled in Medicare Advantage Plans.
Medicare Advantage enrollment increased by 9% from 2022 to 2023.
Enrollment in Medicare Advantage Plans has nearly tripled since 2004.

This steady growth has meant that Medicare Advantage enrollment as a share of total Medicare beneficiaries has risen from 13% in 2005 to over 50% in 2023.

Why is Enrollment Increasing?

There are several factors driving more Medicare beneficiaries to enroll in Medicare Advantage Plans over Original Medicare:

More choices – The number of Medicare Advantage Plans available to beneficiaries has increased significantly, providing more options.
Extra benefits – Many Medicare Advantage Plans offer enhanced benefits not covered by Original Medicare like dental, vision, and hearing.
Lower costs – Medicare Advantage Plans have become more affordable with $0 premium plans. They have caps on out-of-pocket spending.
High satisfaction – Medicare Advantage enrollees report higher satisfaction on average than those with Original Medicare.
Incentives to insurers – The government provides incentives to health insurers to offer Medicare Advantage Plans.
Increased marketing – Health insurers heavily market Medicare Advantage Plans each open enrollment period.
Integrated care – Medicare Advantage Plans provide coordinated healthcare services.
Prescription drug coverage – Most Medicare Advantage Plans include prescription drug coverage.

Current Medicare Enrollment Summary

Here is a quick summary of the current Medicare enrollment landscape based on CMS data:

51% of Medicare beneficiaries are enrolled in Medicare Advantage Plans
49% of Medicare beneficiaries have Original Medicare
28.5 million people have Medicare Advantage Plans
27.5 million people have Original Medicare
9% growth in Medicare Advantage enrollment from 2022 to 2023

Around 90% of all Medicare enrollees choose to also get prescription drug coverage either through Medicare Advantage or stand-alone Part D Plans.

Medicare Advantage Penetration by State

Medicare Advantage enrollment penetration varies by state. Florida has the highest Medicare Advantage enrollment at 66% of Medicare beneficiaries. Other states with over 60% enrollment in Medicare Advantage Plans include Minnesota, Hawaii, Oregon, and Pennsylvania.

Some states with lower Medicare Advantage penetration include Alaska, Wyoming, South Dakota, and Vermont where only about one-third of Medicare beneficiaries are enrolled in Medicare Advantage Plans.

Nationally, the 50 states and District of Columbia have an average Medicare Advantage enrollment penetration of 51%.

Medicare Advantage Plan Types

There are a few main types of Medicare Advantage Plans that Medicare beneficiaries can choose from:

HMO – Health Maintenance Organizations provide care through a network of contracted providers. They represent about two-thirds of Medicare Advantage enrollment.
PPO – Preferred Provider Organizations allow you to pay less when using in-network providers but charge higher costs for out-of-network providers.
PFFS – Private Fee-for-Service plans let you see any Medicare provider as long as they accept the plan’s payment terms.
SNP – Special Needs Plans are designed for specific groups of people like those with chronic conditions.

HMO plans have the highest Medicare Advantage market share at 67% in 2023. PFFS plans have the lowest market share at just 1%.

Largest Medicare Advantage Providers

UnitedHealthcare and Humana dominate the Medicare Advantage market covering over one-third of total enrollment:

UnitedHealthcare has 7.5 million Medicare Advantage enrollees
Humana has 5.1 million Medicare Advantage enrollees
Blue Cross Blue Shield has over 5 million Medicare Advantage enrollees
Kaiser Permanente has over 4 million enrollees
CVS Health has nearly 3 million enrollees

Some other top Medicare Advantage providers include Anthem, Centene, Cigna, Aetna, and Wellcare. The market continues to be highly concentrated among just a handful of insurers.

Medicare Advantage Demographics

Certain demographic groups have higher Medicare Advantage enrollment rates:

Age – Older Medicare beneficiaries aged 80+ enroll in Medicare Advantage at higher rates. 66% of 80+ enrollees choose Medicare Advantage versus 50% of 65-69 year olds.
Income – Medicare Advantage enrollment is highest among beneficiaries earning $30,000 to $50,000 per year. Lower income seniors are more likely to keep Original Medicare and Medicaid.
Health status – Medicare Advantage enrollees report better health statuses on average than those in Original Medicare Plans.
Race – Whites have the highest Medicare Advantage enrollment at 54%. Hispanic and Asian enrollment rates are only around 30%.
Gender – Women are more likely to enroll in Medicare Advantage at 52% compared to just 49% of men.

So in general, older, middle-income, healthier women of white race have the highest rates of Medicare Advantage enrollment.

Projected Future Medicare Advantage Enrollment

Medicare Advantage enrollment is expected to continue growing over the next decade. Here are Medicare Advantage enrollment projections from official government sources:

The Congressional Budget Office projects Medicare Advantage enrollment will reach 47 million by 2032.
The Centers for Medicare and Medicaid Services estimate Medicare Advantage enrollment will hit 36 million by 2025.
The Medicare Trustees forecast around 51% of beneficiaries will join Medicare Advantage Plans over the next decade.
Avalere Health projects Medicare Advantage enrollment will surpass Original Medicare by 2025.

So most official estimates forecast between 60-70% of Medicare beneficiaries enrolled in Medicare Advantage Plans within the next 10 years as enrollment growth accelerates further. But some experts believe growth may slow in the coming years.

Reasons Growth May Slow

While Medicare Advantage enrollment is expected to continue growing, there are some contrary reasons it may slow down:

Cuts to Medicare Advantage payments from Congress could reduce plan incentives.
Limits on out-of-pocket costs in Original Medicare will close the affordability gap.
Insurers may reach maximum penetration rates in certain markets.
More MLS plans provide similar coordinated care to Advantage Plans.
Original Medicare Plan flexibility and freedom of choice appeals to some seniors.
Public Medicare beneficiary education efforts provide balanced information.
Providers resist narrow Medicare Advantage networks and reimbursement rates.

Still, most experts remain confident Medicare Advantage will command an increasing share of Medicare enrollment based on historical growth trends.

Key Takeaways

In review, key points about current Medicare Advantage Plan enrollment include:

For 2023, 51% of Medicare beneficiaries now have Medicare Advantage Plans versus 49% in Original Medicare.
Enrollment has grown 9% year-over-year reaching 28.5 million Medicare Advantage enrollees.
Penetration is highest in Florida at 66% and lowest in Alaska at 33%.
UnitedHealthcare, Humana, and Blue Cross Blue Shield dominate the Medicare Advantage market.
Older, suburban women of White or Asian race have the highest Medicare Advantage enrollment rates.
Medicare Advantage enrollment is projected to reach as high as 70% over the next decade.

Medicare Advantage Plans now appeal to a majority of Medicare beneficiaries. But Original Medicare still retains around half of Medicare enrollment. As the two types of Medicare Plans compete for market share in the coming years, Medicare beneficiaries will continue to have two viable options for receiving their Medicare benefits.

FAQs

What percentage of people are on Medicare Advantage?

As of 2023, approximately 50 percent of Medicare beneficiaries are enrolled in a Medicare Advantage program.

How does Medicare Advantage compare to traditional Medicare?

Medicare Advantage is an alternative to traditional Medicare program, offering additional benefits and coverage options beyond what is provided by the standard parts A and B of Medicare.

What is the percent of Medicare beneficiaries enrolled in Medicare Advantage?

As of March 2023, the percent of all Medicare beneficiaries enrolled in a Medicare Advantage program is approximately 50 percent.

How many Medicare beneficiaries are eligible for Medicare Advantage?

There are millions of Medicare beneficiaries who are eligible for Medicare Advantage’s additional benefits and coverage options.

How many people are enrolled in a Medicare Advantage program?

The exact enrollment numbers can vary, but as of March 2023, there are millions of beneficiaries who have chosen to enroll in Medicare Advantage.

What is the percentage of Medicare beneficiaries eligible for Medicare Advantage?

As of 2023, the percentage of Medicare beneficiaries eligible for Medicare Advantage is approximately 50 percent.

What is the Medicare Advantage program?

The Medicare Advantage program is an alternative to traditional Medicare, providing additional benefits and coverage options to eligible Medicare beneficiaries.

When do the enrollment numbers for Medicare Advantage become available?

The enrollment data for Medicare Advantage is typically available for the months of March 2022 and March 2023.

How does Medicare Advantage compare to the Medicare program?

Medicare Advantage is a part of the broader Medicare program, offering additional benefits and coverage options to eligible Medicare beneficiaries.

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