CMS Expects Medicare Advantage to Enroll More Patients in 2018

The CMS recently announced that Medicare Advantage is expected to enroll more members in 2018 and cost less than previous years.

Ahead of open enrollment for the program, which starts on October 15, the Agency announced that more plan choices for customers will result in increased enrollment and lower overall costs.

“The success of Medicare Advantage and the prescription drug program demonstrates what a strong and transparent health market can do—increase quality while lowering costs,” Seema Verma, MPH, administrator of CMS, said in a press release. “When Americans are empowered to choose the health care plans that fit their needs and the needs of their families, they demand more from their insurance plans and in turn healthcare plans, like any business, provide customers better service at a lower cost.”

The Agency expects average monthly premiums to decrease by approximately 6%, from $31.91 in 2017 to about $30 in 2008. CMS also stated that about 77% of current Medicare Advantage members who stay in their plans will see lower or even premiums in 2018. 

Additionally, CMS projects that enrollment will increase by 9%, to 20.4 million members in 2018. They also noted that the program is expected to cover 34% of all Medicare members in 2018. 

Investment in Medicare Advantage is expected to pay off substantially for payers, who have already 
reported substantial revenue growth as a result of Medicare Advantage participation. Do to
successes so far, UnitedHealth, the largest Medicare Advantage insurer, recently announced that nearly half of its senior members will be in the program in 2018.

“We do think there’s an opportunity to further advance the penetration of the Medicare Advantage,” Steven Nelson, CEO of UnitedHealth recently said on a conference call. “Where it can go, hard to tell, but I don’t think it’s unreasonable to think about something north of...40% approaching 50%. It doesn’t seem like an unreasonable idea to us.” —David Costill