10 findings on the state of Medicare Advantage in 2023

The 2023 report compiles recent research and data to provide a thorough snapshot of Medicare Advantage, including beneficiary demographics, enrollment patterns, supplemental benefit options, cost savings, and health outcomes. The release of the report comes in the wake of new projections by the Centers for Medicare & Medicaid Services (CMS), showing that Medicare Advantage growth is expected to reach 33.8 million beneficiaries in 2024.

RELATED: Medicare Advantage in 2023: 15 trends in enrollment, premiums, and supplemental benefits

“Today, more than half of all seniors, including rural, lower-income, and minority Americans, choose Medicare Advantage for the affordable, quality care it provides. This milestone, together with the CMS’ latest enrollment projections, demonstrate what can be accomplished when policymakers and advocates put seniors and people with disabilities first,” said Mary Beth Donahue, president and CEO of the Better Medicare Alliance, in an announcement.

RELATED: Research roundup: Half of MA members leave plan after five years; HHS finds beneficiaries switching out of traditional Medicare drove MA growth; and more

Here are 10 findings from the report:

Enrollment

• More than 31 million beneficiaries (51 percent of the Medicare population) now choose Medicare Advantage
• The share of beneficiaries living in rural areas who choose Medicare Advantage, now 40 percent, has quadrupled since 2010
• Medicare Advantage now attracts the largest share of minority populations with:
  69 percent of Latino Medicare beneficiaries
  65 percent of Black Medicare beneficiaries
  60 percent of Asian Medicare beneficiaries

Access

• Over 92 percent of Medicare Advantage beneficiaries are enrolled in a Medicare Advantage Prescription Drug (MA-PD) plan
  
  
• Ninety-nine percent of beneficiaries have access to a $0 premium MA-PD plan
  
  
• Almost all (99.9 percent) Medicare Advantage plans offer supplemental benefits, such as vision, dental, transportation to medical appointments, and grocery delivery

Affordability and value

• Medicare Advantage beneficiaries report spending over $2,400 less on out-of-pocket costs and premiums annually compared to those enrolled in fee-for-service Medicare— a 44 percent cost savings
  
  
• The average Medicare Advantage monthly premium in 2023 is just $18, a 16-year low

RELATED: CMS projects MA plan premiums will remain stable in 2024 

Outcomes

• Medicare Advantage beneficiaries experienced a 43 percent lower rate of avoidable hospitalizations for any condition
• Ninety-five percent of Medicare Advantage beneficiaries report being satisfied with their coverage