Scan Venture Plan 2022: Medicare Advantage Penetration Continues to Climb

The healthcare industry has been witnessing a significant shift in the past few years, with Medicare Advantage (MA) plans gaining traction among seniors and individuals with disabilities. According to recent analyses, the market is expected to reach 50% penetration by 2025, with 11 states already having half or more of their eligible beneficiaries enrolled in MA products.

As of 2022, the MA market has grown to 45% of all Medicare enrollment, up from 42% last year and 37% in 2019. This represents a significant increase of +3% over 2021 and a total program enrollment growth of +9%. The program now boasts an impressive 28 million participants, accounting for 45% of all Medicare beneficiaries.

The shift towards MA plans is not limited to just market share; it's also reflected in the number of lives added. In 2022, the MA market added +2.3 million lives at the expense of 1.3 million Original Medicare lives. This contraction in Original Medicare enrollment and shift to MA is the highest it has ever been.

Medicare overall enrollment continues to grow, up by +1 million this year. However, growth has slowed compared to years past, partly due to COVID-19 deaths among the 65+ population, which were 300,000 per year from 2020 onwards.

The strong value proposition of MA products and the industry's sustained efforts to create new value for consumers have contributed to this growth. The competitive landscape for health plans administering these products is also evolving, with a shifting balance of power among different players in the market.

In conclusion, Medicare Advantage has had another banner year in 2022, with penetration continuing to climb and program enrollment growth reaching new heights. As the healthcare industry continues to evolve, it will be essential for health plans to stay ahead of the curve and adapt to changing consumer needs and market trends.

Scan venture plan 2022