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 * Medicare Advantage in 2021: Enrollment Update and Key Trends


MEDICARE ADVANTAGE IN 2021: ENROLLMENT UPDATE AND KEY TRENDS

Meredith Freed , Jeannie Fuglesten Biniek Follow @jeanniebin on Twitter ,
Anthony Damico , and Tricia Neuman Follow @tricia_neuman on Twitter
Published: Jun 21, 2021

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Over the last decade, the role of Medicare Advantage, the private plan
alternative to traditional Medicare, has grown. In 2021, more than 26 million
people are enrolled in a Medicare Advantage plan, accounting for 42 percent of
the total Medicare population, and $343 billion (or 46%) of total federal
Medicare spending (net of premiums). The average Medicare beneficiary in 2021
has access to 33 Medicare Advantage plans, the largest number of options
available in the last decade.

To better understand trends in the growth of the program, this brief provides
current information about Medicare Advantage enrollment, including the types of
plans in which Medicare beneficiaries are enrolled, and how enrollment varies
across geographic areas. A second, companion analysis describes Medicare
Advantage premiums, out-of-pocket limits, cost sharing, extra benefits offered,
and prior authorization requirements in 2021. A third analysis compares Medicare
Advantage plans’ star ratings and federal spending under the quality bonus
program.


ENROLLMENT IN MEDICARE ADVANTAGE HAS MORE THAN DOUBLED OVER THE PAST DECADE









In 2021, more than four in ten (42%) Medicare beneficiaries – 26.4 million
people out of 62.7 million Medicare beneficiaries overall – are enrolled in
Medicare Advantage plans; this share has steadily increased over time since the
early 2000s. Between 2020 and 2021, total Medicare Advantage enrollment grew by
about 2.4 million beneficiaries, or 10 percent – nearly the same growth rate as
the prior year. The Congressional Budget Office (CBO) projects that the share of
all Medicare beneficiaries enrolled in Medicare Advantage plans will rise to
about 51 percent by 2030 (Figure 2)








IN 2021, TWO-THIRDS OF MEDICARE ADVANTAGE ENROLLEES ARE IN INDIVIDUAL PLANS









Two-thirds (67%) of Medicare Advantage enrollees, or 17.7 million people, are
plans generally available for individual enrollment. That is an increase of 1.6
million enrollees compared to 2020. Individual plans have accounted for
approximately the same share of total Medicare Advantage enrollment since 2014.


NEARLY ONE IN FIVE MEDICARE ADVANTAGE ENROLLEES (19%) ARE IN GROUP PLANS OFFERED
TO RETIREES BY EMPLOYERS AND UNIONS IN 2021









Nearly 4.9 million Medicare Advantage enrollees are in a group plan offered to
retirees by an employer or union. While this is roughly the same share of
enrollment since 2014 (19%), the actual number has increased from 1.9 million in
2010 to 4.9 million in 2021 (Figure 4). With a group plan, an employer or union
contracts with an insurer and Medicare pays the insurer a fixed amount per
enrollee to provide benefits covered by Medicare. For example, some states, such
as Illinois and Pennsylvania, provide health insurance benefits to their
Medicare-eligible retirees exclusively through Medicare Advantage plans. As with
other Medicare Advantage plans, employer and union group plans often provide
additional benefits and/or lower cost sharing than traditional Medicare. The
employer or union (and sometimes the retiree) may also pay an additional premium
for these supplemental benefits. Group enrollees comprise a disproportionately
large share of Medicare Advantage enrollees in eight states: Alaska (100%),
Michigan (45%), Maryland (39%), West Virginia (39%), New Jersey (37%), Wyoming
(35%), Illinois (32%), and Kentucky (31%).


ALMOST 4 MILLION MEDICARE BENEFICIARIES ARE ENROLLED IN SPECIAL NEEDS PLANS IN
2021









Nearly four million Medicare beneficiaries are enrolled in Special Needs Plans
(SNPs). SNPs restrict enrollment to specific types of beneficiaries with
significant or relatively specialized care needs, or who qualify because they
are eligible for both Medicare and Medicaid. The majority of SNP enrollees (88%)
are in plans for beneficiaries dually eligible for Medicare and Medicaid
(D-SNPs). Another 10 percent of SNP enrollees are in plans for people with
severe chronic or disabling conditions (C-SNPs) and 2 percent are in plans for
beneficiaries requiring a nursing home or institutional level of care (I-SNPs).

While D-SNPs are designed specifically for dually-eligible beneficiaries, 1.5
million Medicare beneficiaries with Medicaid were enrolled in non-SNP Medicare
Advantage plans in 2019 (the most recent year for which this data is available).

Enrollment in SNPs increased from 3.3 million beneficiaries in 2020 to 3.8
million beneficiaries in 2021 (15% increase), and accounts for about 15% of
total Medicare Advantage enrollment in 2021, up from 11% in 2010, with some
variation across states. In the District of Columbia and Puerto Rico, SNPs
comprise about half of all Medicare Advantage enrollees (54% in DC and 47% in
PR). In eight states, SNP enrollment accounts for about one-fifth of Medicare
Advantage enrollment (25% in NY, 23% in LA and in MS, 22% in SC and in GA, 21%
in AR and in FL, and 20% in TN). Nearly 95% of C-SNP enrollees (about 362,000
people) are in plans for people with diabetes or cardiovascular conditions in
2021. Enrollment in I-SNPs has been increasing but slightly declined in 2021 and
is still fewer than 100,000.


THE SHARE OF MEDICARE BENEFICIARIES IN MEDICARE ADVANTAGE PLANS, BY STATE,
RANGES FROM 1% TO OVER 50%, AND VARIES SUBSTANTIALLY WITHIN STATES




The share of Medicare beneficiaries in Medicare Advantage plans varies across
the country. At least 50 percent of Medicare beneficiaries are enrolled in
Medicare Advantage plans in two states (MN, FL) and Puerto Rico. Puerto Rico has
the highest Medicare Advantage penetration, with 80 percent of Medicare
beneficiaries enrolled in a Medicare Advantage plan. Additionally, in 24 states,
at least 40 percent of Medicare beneficiaries are enrolled in Medicare Advantage
plans (AL, MI, HI, OR, WI, CT, GA, PA, ME, LA, CO, NY, CA, OH, TX, AZ, TN, RI,
NC, NV, MO, UT, KY, NM). Medicare Advantage enrollment is relatively low (less
than 20 percent) in four states, Vermont, Maryland, and two mostly rural states
where it is virtually non-existent (AK and WY).

Within states, the share of Medicare beneficiaries enrolled in Medicare
Advantage varies substantially across counties. For example, in Florida, 51% of
all Medicare beneficiaries in the state are enrolled in Medicare Advantage, and
the share by county ranges from 16% in Monroe County (Key West) to 73% in
Miami-Dade County. In Ohio, 45% of all Medicare beneficiaries are enrolled in
Medicare Advantage, with the share by county ranging from 27% in Mercer County
(Celina) to 58% in Stark County (Canton). To explore this variation, click on a
state on the map in Figure 6.

Historically, the majority of Medicare private health plan enrollment in
Minnesota has been in cost plans, which are not Medicare Advantage plans, but
are a type of Medicare health coverage that has some of the same rules as
Medicare Advantage plans, and are offered in limited areas of the country.
However, as of 2019, most cost plans in Minnesota are no longer offered and have
been replaced with risk-based HMOs and PPOs. In 2021, cost plans represent about
11% of Medicare Advantage enrollment in Minnesota.


NEARLY THREE IN TEN MEDICARE BENEFICIARIES LIVE IN A COUNTY WHERE MORE THAN HALF
OF MEDICARE BENEFICIARIES IN THAT COUNTY ARE ENROLLED IN A MEDICARE ADVANTAGE
PLAN

In 2021, 29 percent of all Medicare beneficiaries live in a county where more
than half of Medicare beneficiaries in that county are enrolled in Medicare
Advantage plans (446 counties). That is substantially more than in 2010 when
just 4 percent of the Medicare population lived in a county where more than 50
percent of Medicare beneficiaries were enrolled in a Medicare Advantage plan
(109 counties). Many counties with high Medicare Advantage penetration are
centered around relatively large, urban areas, such as Monroe County, NY (71%),
which includes Rochester, and Allegheny County, PA (64%), which includes
Pittsburgh.

In contrast, in 383 counties, accounting for 2 percent of Medicare
beneficiaries, no more than 10 percent of beneficiaries are enrolled in private
Medicare plans; many of these low penetration counties are in rural parts of the
country. However, some urban areas, such as Baltimore City, MD (27%),
Charleston, SC (27%), and Cook County, IL (Chicago, 31%) have low Medicare
Advantage enrollment, compared to the national average (42%).

To see how Medicare Advantage penetration has changed over time and to highlight
counties with at least a minimum share of beneficiaries enrolled in Medicare
Advantage, select a Medicare Advantage penetration level and adjust the year
using the slider in Figure 7.


UNITEDHEALTHCARE AND HUMANA ACCOUNT FOR NEARLY HALF OF ALL MEDICARE ADVANTAGE
ENROLLEES NATIONWIDE IN 2021









Medicare Advantage enrollment is highly concentrated among a small number of
firms. UnitedHealthcare and Humana together account for 45 percent of all
Medicare Advantage enrollees nationwide, and the BCBS affiliates (including
Anthem BCBS plans) account for another 14 percent of enrollment in 2021. Four
firms (CVS Health, Kaiser Permanente, Centene, and Cigna) account for another 23
percent of enrollment in 2021.


UNITEDHEALTHCARE AND HUMANA HAVE CONSISTENTLY ACCOUNTED FOR A LARGE SHARE OF
MEDICARE ADVANTAGE ENROLLMENT









UnitedHealthcare has had the largest share of Medicare Advantage enrollment
since 2010. Its share of Medicare Advantage enrollment has grown from 19 percent
in 2010 to 27 percent in 2021. Humana has also had a high share of Medicare
Advantage enrollment, though its share of enrollment has grown more slowly, from
16 percent in 2010 to 18 percent in 2021. BCBS plans share of enrollment has
moderately declined over the years, initially rising from 15 percent in 2010 to
17 percent in 2011, but then declining to 14 percent in 2021. CVS Health, which
purchased Aetna in 2018, has seen its share of enrollment nearly double from 6
percent in 2010 to 11 percent in 2021. Kaiser Permanente has seen its share of
enrollment moderately decline, from 9% in 2010 to 7% in 2021. The largest
decline has been for all other insurers (insurers that have less than 2 percent
of enrollment), which has dropped from 26 percent in 2010 to 17 percent in 2021.

For the fifth year in a row, enrollment in UnitedHealthcare’s plans grew more
than any other firm, increasing by more than 854,000 beneficiaries between March
2020 and March 2021. Humana’s increase in plan year enrollment was about half of
UnitedHealthcare’s, with an increase of about 395,000 beneficiaries between
March 2020 and March 2021. BCBS affiliates had the third largest growth in plan
enrollment with an increase of about 305,000 between March 2020 and March 2021.
CVS Health, which purchased Aetna in 2018, had the fourth largest growth in
Medicare Advantage enrollment in 2021, increasing by about 242,000 beneficiaries
between March 2020 and March 2021.


DISCUSSION

Medicare Advantage enrollment has steadily increased both nationally and within
most states since 2005, with more than 40 percent of Medicare beneficiaries
enrolled in Medicare Advantage plans in 2021. The share of Medicare Advantage
enrollees varies across the country: in 26 states and Puerto Rico, at least 40
percent of Medicare beneficiaries are enrolled in Medicare Advantage plans in
2021, and at least 50 percent in Florida, Minnesota and Puerto Rico. In a
growing number of counties, more than half of all Medicare beneficiaries are in
a Medicare Advantage plan, in lieu of traditional Medicare. Enrollment continues
to be highly concentrated among a handful of firms, both nationally and in local
markets, with UnitedHealthcare and Humana together accounting for 45 percent of
enrollment in 2021.

As Medicare Advantage takes on an even larger presence in the Medicare program,
and as the Medicare Hospital Insurance Trust Fund is currently projected to be
insolvent by 2026, it will be increasingly important to assess how well
Medicare’s current payment methodology for Medicare Advantage is working to
enhance efficiency and hold down beneficiary costs and Medicare spending. It
will also be important to monitor how well beneficiaries are being served in
both Medicare Advantage and traditional Medicare, in terms of costs, benefits,
quality of care, patient outcomes, and access to providers, with particular
attention to those with the greatest needs.

Meredith Freed, Jeannie Fuglesten Biniek, Tricia Neuman are with KFF.
Anthony Damico is an independent consultant.

 

Methods This analysis uses data from the Centers for Medicare & Medicaid
Services (CMS) Medicare Advantage Enrollment, Benefit and Landscape files for
the respective year. KFF is now using the Medicare Enrollment Dashboard for
enrollment data, from March of each year.



In previous years, KFF has used the Medicare Advantage Penetration Files to
calculate the number of Medicare beneficiaries eligible for Medicare. The
Medicare Advantage Penetration Files includes people who were previously, but no
longer covered by Medicare (e.g., people who obtained employer-sponsored health
insurance coverage after initially enrolling in Medicare). It also includes
people within 5 months of their 65th birthday, but not yet age 65. In addition,
CMS identified an issue where beneficiaries with multiple addresses were double
counted in the Penetration File. KFF refined its approach last year and is using
the Medicare Enrollment Dashboard to calculate the number of Medicare
beneficiaries because it only includes Medicare beneficiaries with either Part A
or Part B coverage, which is a more accurate estimate of the Medicare
population.

This analysis uses the term Medicare Advantage to refer to Medicare Advantage
plans and other types of private plans, including cost and PACE plans. However,
MMPs are excluded from this analysis. Enrollment counts in publications by firms
operating in the Medicare Advantage market, such as company financial
statements, might differ from KFF estimates due to inclusion or exclusion of
certain plan types, such as SNPs or employer plans.

TOPICS

 * Medicare

TAGS

 * Medicare Advantage
 * Enrollment
 * Seniors


ALSO OF INTEREST

 * Medicare Advantage 2021 Spotlight: First Look
 * Medicare Advantage in 2021: Premiums, Cost Sharing, Out-of-Pocket Limits and
   Supplemental Benefits
 * Medicare Advantage in 2021: Star Ratings and Bonuses

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