Medicare Advantage

What Is Medicare Advantage and Who Is Covered?

Medicare Advantage is the part of Medicare through which private health plans provide comprehensive medical coverage to seniors and other Medicare beneficiaries.

Over 14 million Americans, or roughly 28 percent of all Medicare beneficiaries, have chosen to enroll in a Medicare Advantage plan because of the better services, higher-quality care and additional benefits these plans provide.  Analysis of federal data also shows that Medicare Advantage is an important option for low-income and minority Medicare beneficiaries.  Seniors who chose to enroll in Medicare Advantage express high satisfaction with their coverage and benefits.

 Medicare Advantage:
Who is Covered? 
Medicare Advantage: 
High Satisfaction,
Better Quality Care
 
MA: Who is Covered  MA Satisfaction 

Medicare Advantage plans offer a different approach to health care delivery than beneficiaries experience under fee-for-service Medicare. Instead of just focusing on treating beneficiaries when they are sick, these plans place a strong emphasis on preventive health care services that help keep beneficiaries healthy, detect diseases at an early stage, and avoid preventable illnesses. Research has shown that beneficiaries in Medicare Advantage receive higher quality care, are subject to fewer preventable hospital re-admissions and are less likely to have potentially avoidable hospital admissions.

The Medicare Advantage program has received strong  bipartisan support from Congress.

The Affordable Care Act’s Impact 

The Affordable Care Act reduces funding by more than $200 billion for the Medicare Advantage program ($136 billion directly and another $70 billion indirectly).  Only 4% of the health care reform law’s cuts have gone into effect.  In addition to the funding cuts, the health care reform law also includes a new health insurance tax that will impact seniors and other beneficiaries who have chosen a Medicare Advantage plan.

 MA Cuts Chart
 

The Congressional Budget Office projects that the reform law's payment cuts alone will result in three million fewer people enrolled in Medicare Advantage. A recent study estimated that the health insurance tax will result in seniors facing $220 in higher out-of-pocket costs and reduced benefits next year and $3,500 in additional costs over the next ten years.

Latest Resources

AHIP Statement on Final 2014 Medicare Advantage Payment Rates

America's Health Insurance Plans (AHIP) President and CEO Karen Ignagni released the following statement in response to the final Medicare Advantage payment rates released by the Centers for Medicare & Medicaid Services (CMS) today.

Press Releases | Strategic Communications | 04/01/2013

More than 40,000 Seniors Have Contacted Congress to Oppose CMS’ Proposed Cut to Medicare Advantage

Tens of thousands of seniors all across the country have spoken out against a deep new cut to Medicare Advantage recently proposed by the Centers for Medicare & Medicaid Services (CMS), the agency that oversees the Medicare program. Seniors are calling, writing, and meeting with congressional offices urging their representatives to contact CMS to oppose this cut before it is finalized on April 1.

Press Releases | Strategic Communications | 03/25/2013

New State-by-State Data on Impact of CMS’ Proposed Cut to Medicare Advantage

Seniors all across the country will experience higher premiums and reduced health care benefits if a new cut to the Medicare Advantage program takes effect next year as was recently proposed by the Centers for Medicare & Medicaid Services (CMS), the agency that oversees the Medicare program

Press Releases | Strategic Communications | 03/21/2013

Seniors Speak Out Against Medicare Advantage Cuts in AHIP’s New TV Ad

America’s Health Insurance Plans’ (AHIP) Coalition for Medicare Choices, which represents over 1.3 million Medicare Advantage beneficiaries, is launching a new TV ad as part of its campaign against new cuts to Medicare Advantage recently proposed by the Centers for Medicare & Medicaid Services (CMS).

Press Releases | Strategic Communications | 03/18/2013

AHIP Launches TV Ad Campaign to Stop New Medicare Advantage Cuts

America’s Health Insurance Plans’ (AHIP) Coalition for Medicare Choices, which represents over 1.3 million Medicare Advantage beneficiaries, is launching a TV and online ad campaign to urge lawmakers to speak out against new cuts to Medicare Advantage recently proposed by the Centers for Medicare & Medicaid Services (CMS).

Press Releases | Strategic Communications | 03/06/2013

Medicare Advantage Cuts: Higher Costs and Reduced Benefits Infographic

AHIP has developed an infographic showing the impact of proposed cuts to Medicare Advantage on Medicare Advantage beneficiaries.

Infographics | Strategic Communications | 02/28/2013

Survey: Nine out of Ten Seniors Satisfied with their Medicare Advantage Coverage

Nine out of ten seniors are satisfied with their Medicare Advantage coverage, according to a new survey from North Star Opinion Research commissioned by America’s Health Insurance Plans (AHIP).

Press Releases | Strategic Communications | 02/28/2013

Medicare Advantage by the Numbers State Infographics

AHIP has released infographics outlining the impact of proposed cuts on Medicare Advantage beneficiaries in select states.

Infographics | Strategic Communications | 02/27/2013

New Report: CMS’ Proposed Medicare Advantage Cuts Will Result in Higher Costs, Fewer Benefits for Seniors

Seniors and people with disabilities enrolled in Medicare Advantage plans will face higher premiums, reduced benefits, and loss of coverage options if new Medicare Advantage cuts proposed by the Centers for Medicare & Medicaid Services (CMS) take effect next year, according to a new analysis by Oliver Wyman prepared for America’s Health Insurance Plans.

Press Releases | Strategic Communications | 02/26/2013

Proposed Changes to 2014 Medicare Advantage Payment Methodology and the Effect on Medicare Advantage Organizations and Beneficiaries - [PDF]

On February 15, 2013, CMS released its Advance Notice of Methodological Changes for Calendar Year 2014 Medicare Advantage (“MA”) Capitation Rates and Part C and Part D Payment Policies.

Reports/Research/White Papers | Strategic Communications | 02/26/2013

Low-Income and Minority Medicare Beneficiaries Rely on Medicare Advantage for their Health Security

Low-income and minority Medicare beneficiaries continue to rely on the high-quality health care coverage provided by Medicare Advantage plans, according to a new report released by America’s Health Insurance Plans (AHIP).

Press Releases | Strategic Communications | 02/21/2013

Low-Income & Minority Beneficiaries in Medicare Advantage Plans - [PDF]

New data from the Medicare Current Beneficiary Survey (MCBS) show that Medicare Advantage plans, Medicare’s private comprehensive health plans, continue to be a vital source of coverage for low-income and minority beneficiaries in 2011.
 

Center for Policy and Research | 02/20/2013

Proposed Medicare Advantage Payment Changes Will Hurt Seniors

America's Health Insurance Plans’ (AHIP) President and CEO Karen Ignagni released the following statement today in response to proposed Medicare Advantage payment changes, the 45-day notice, released by CMS last Friday.

Press Releases | Strategic Communications | 02/19/2013

AHIP Statement on Medicare Advantage

America’s Health Insurance Plans (AHIP) President and CEO Karen Ignagni released the following statement on the announcement today by the Department of Health and Human Services that enrollment in Medicare Advantage is projected to increase by 11 percent in the next year and premiums will remain steady.

Press Releases | Strategic Communications | 09/19/2012

Health Literacy and America’s Health Insurance Plans: Laying the Foundation and Beyond - [PDF]

Increasingly, stakeholders across the health care system have recognized the important linkage between health literacy and health status. America’s Health Insurance Plans’ new publication summarizes the health literacy programs of 27 member companies and describes their commitment to providing consumers with information on their health and benefits that can be easily understood and used to good advantage.

Reports/Research/White Papers | Center for Policy and Research, Strategic Communications | 09/12/2012

Medicare Advantage: What You Need to Know - [PDF]

 

Fact Sheets/Issue Briefs/Talking Points | Strategic Communications | 07/13/2012

Low-Income & Minority Beneficiaries in Medicare Advantage Plans, 2010 - [PDF]

New data from the Medicare Current Beneficiary Survey (MCBS) show that Medicare Advantage plans, Medicare’s private comprehensive health plans, continue to be a vital source of coverage for low-income and minority beneficiaries in 2010.

Reports/Research/White Papers | Center for Policy and Research | 05/03/2012

Hospital Readmission Rates in Medicare Advantage Plans - [PDF]

Based on a large sample of administrative claims data, this study measured 30-day readmission rate for hospitalized Medicare Advantage (MA) patients of 14.5% (per admission) in the 2006-2008 period.  After adjustments for readmission risk and disability entitlement status, the MA readmission rate was about 13% to 20% lower than that in Medicare’s traditional fee-for-service (FFS) program.  Benchmark measurements of readmission rates among MA patients can help provide an impetus for additional reductions in both MA and FFS Medicare.

Reports/Research/White Papers | Center for Policy and Research | 02/28/2012

New Study in AJMC Provides Further Evidence of the Effectiveness of MA Plans in Addressing One of the Most Pressing Problems in Health Care Today

As the nation continues to focus on the crucial patient safety implications of avoiding preventable hospital readmissions, a new study contributes fresh evidence to the mounting body of work indicating that hospital readmission rates are lower in Medicare Advantage (MA) than in Medicare fee-for-service (FFS). 

Press Releases | Strategic Communications | 02/28/2012

Low-Income & Minority Beneficiaries in Medicare Advantage Plans, 2008 - [PDF]

New data from the Medicare Current Beneficiary Survey (MCBS) show that Medicare Advantage plans, Medicare’s private comprehensive health plans, were a vital source of coverage for low-income and minority beneficiaries in 2008.

Reports/Research/White Papers | Center for Policy and Research | 12/06/2010

AHIP Statement on Medicare Advantage

Press Releases | Strategic Communications | 09/21/2010

Reductions in Medicare Advantage Payments: The Impact on Seniors by Region - [PDF]

Heritage Foundation backgrounder on the impact of new Medicare Advantage cuts included in the ACA, which states that these cuts “will restrict senior citizens and the disabled to fewer and worse health care choices, reducing their access to quality health care.”

Reports/Research/White Papers | 09/14/2010

Medicare Advantage is Reducing Preventable Hospital Readmissions for Seniors

A new analysis of federal and state government data provides further evidence that seniors in Medicare Advantage have lower risk-adjusted hospital readmission rates than patients in Medicare’s traditional fee-for-service (FFS) program, according to a report released today by America’s Health Insurance Plans (AHIP).

Press Releases | Strategic Communications | 06/07/2010

Estimated Financial Effects of the “Patient Protection and Affordable Care Act,” as Amended - [PDF]

The Centers for Medicare and Medicare Services Chief Actuary Rick Foster released an analysis of the Patient Protection and Affordable Care Act, which concluded that cuts to Medicare Advantage would “result in less generous benefit packages” and that MA enrollment would be 50 percent lower than previous projections.

Federal Statutory/Regulatory/ Guidance Docs | 04/22/2010

Comparison of Projected Enrollment in Medicare Advantage Plans - [PDF]

The Congressional Budget Office released its latest projections on the impact new cuts to Medicare Advantage will have on the millions of seniors enrolled in the program. CBO is projecting MA enrollment will decline from 11.7 million enrollees in 2011 to 7.5 million in 2018.

Reports/Research/White Papers | 03/19/2010

AHIP Statement on Health Care Reform Legislation

 

Press Releases | Strategic Communications | 03/18/2010

Previous Medicare Advantage cuts caused seniors to lose their coverage

Following the Medicare Advantage cuts in the Balanced Budget Act of 1997, millions of seniors across the country saw higher premiums, a reduction in benefits, and loss of coverage.

AHIP Coverage Blog Posts | 03/08/2010

AHIP Statement on House Passage of H.R. 3962

Washington, DC - Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), released the following statement today on House passage of H.R. 3962.

Press Releases | Strategic Communications | 11/07/2009

AHIP Statement on Today's CMS Announcement

America’s Health Insurance Plans (AHIP) President and CEO Karen Ignagni released the following statement today regarding the announcement from the Centers for Medicare and Medicaid Services (CMS) on Medicare Advantage plans.

Press Releases | Strategic Communications | 10/01/2009

Seniors in Medicare Advantage Receive Higher Quality Care, New Reports Show

Seniors in Medicare Advantage spent fewer days in a hospital, were subject to fewer hospital re-admissions, and were less likely to have “potentially avoidable” admissions, for common conditions ranging from uncontrolled diabetes to dehydration, according to a new analysis of publicly available AHRQ data released today by America’s Health Insurance Plans (AHIP).

Press Releases | Strategic Communications | 09/15/2009

A New Government-Run Plan Would Impose Significant Financial Losses on California Hospitals

Washington, DC - Many California hospitals would face substantial net losses if there were a large scale shift of individuals with private coverage to a government-run plan that reimburses providers at Medicare rates or Medicare rates plus 10 percent, according to a new hospital-by-hospital analysis released today by America's Health Insurance Plans (AHIP), based on data from California's Office of Statewide Health Planning and Development (OSHPD).

Press Releases | Strategic Communications | 07/16/2009

AHIP Statement on the President's Budget

Karen Ignagni, President and CEO of America’s Health Insurance Plans, issued the following statement today in response to the President’s budget.

Press Releases | Strategic Communications | 02/26/2009

Consumers and Employers Paying Almost $90 Billion Due to Under-Payments to Hospitals and Physicians by Medicare and Medicaid

Low Medicare and Medicaid reimbursements to hospitals and physicians lead to significantly higher health insurance costs for consumers and employers, according to a study released today by Milliman Inc.

Press Releases | Strategic Communications | 12/09/2008

AHIP Statement on New CMS Guidelines for Agent and Broker Commissions in Medicare Advantage

Washington, DC - Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), today issued the following statement on new guidelines announced by CMS on agent and broker compensation for Medicare Advantage plans.

Press Releases | Strategic Communications | 11/10/2008

AHIP: Low-Income and Minority Seniors Depend on Medicare Advantage

Medicare Advantage is an important coverage option for minority and low-income seniors, according to the latest data from the Medicare Current Beneficiary Survey (MCBS).

Press Releases | Strategic Communications | 09/22/2008

AHIP Statement on New CBO Report Showing that Senate Legislation will Cut Medicare Advantage Enrollment by 2.3 Million

The Congressional Budget Office (CBO) estimates that Medicare legislation currently being considered in the U.S. Senate (H.R. 6331) would decrease enrollment in Medicare Advantage by about 2.3 million individuals over the next five years. Karen Ignagni, President and CEO of America’s Health Insurance Plans (AHIP) issued the following statement.

Press Releases | Strategic Communications | 07/09/2008

Seniors Mobilizing Against Medicare Advantage Cuts

Washington, DC - As Congress continues to pursue a solution to the Medicare physician payment issue, seniors from across the country are mobilizing over the July 4th recess to urge Congress to preserve their Medicare Advantage benefits. The Coalition for Medicare Choices, which consists of 400,000 seniors, has mobilized thousands of seniors across the country to call, write, email, and visit their representatives during the July 4th recess to express their opposition to cutting Medicare Advantage benefits.

Press Releases | Strategic Communications | 07/01/2008

AHIP Statement on House Passage of H.R. 6331

Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), today issued the following statement in response to the U.S. House of Representatives passage of H.R. 6331.

Press Releases | Strategic Communications | 06/24/2008

Seniors Oppose Cutting Medicare Advantage to Fund Physician Payment Fix

Washington, DC - Most seniors - regardless of whether they are enrolled in traditional Medicare or Medicare Advantage - oppose cutting the Medicare Advantage program to fund the Medicare physician payment fix and believe cuts to Medicare Advantage will have a negative effect on seniors, a new survey finds. Conducted jointly by Ayres, McHenry & Associates and the Feldman Group on behalf of America's Health Insurance Plans (AHIP), the poll found that seniors in traditional Medicare and Medicare Advantage generally agree about how to approach the physician payment issue.

Press Releases | Strategic Communications | 06/19/2008

AHIP Statement on CMS Proposed Medicare Marketing Regulations

In March, AHIP's Board of Directors advocated for stronger federal regulation and oversight of the Medicare Advantage and Medicare Part D plan marketing activities.Today, the Centers for Medicare & Medicaid Services issued its new regulations.

Press Releases | Strategic Communications | 05/08/2008

Health Plans Highlight Value of Medicare Advantage Special Needs Plans; Urge Congress to Extend Program

At a briefing today on Capitol Hill hosted by America's Health Insurance Plans (AHIP), health plans showcased the value Medicare Advantage Special Needs Plans (SNP) provide to the most vulnerable Medicare beneficiaries.  AHIP is urging Congress to extend the SNP program beyond 2009 and remove the existing moratorium on new SNPs and service areas to ensure beneficiaries with special needs have access to plans that are specifically tailored to address their issues.

Press Releases | Strategic Communications | 04/24/2008

Insurers Support Strengthened Federal Regulation and Oversight for Marketing to Medicare Beneficiaries

Yesterday, the Board of Directors of America's Health Insurance Plans (AHIP) issued a call for additional federal regulation and oversight of the Medicare Advantage and Medicare Part D plan marketing activities. In adopting this statement, the AHIP Board has indicated its strong commitment to serving seniors in Medicare and to advocate that more be done through this process to advance consumer protections.

Press Releases | Strategic Communications | 03/04/2008

GAO Confirms That Medicare Advantage Yields Savings for Seniors

Medicare Advantage plans continue to provide high-value health care coverage to millions of seniors according to estimates and projections released by the U.S. Government Accountability Office (GAO).

Press Releases | Strategic Communications | 02/28/2008

AHIP Comment Letter Submitted to CMS Regarding 45 Day Notice for 2014 MA Payments - [PDF]

March 1, 2013 Jonathan Blum, Director, Center for Medicare Paul Spitalnic, A.S.A., M.A.A.A., Director, Parts C & D Actuarial Group Centers for Medicare & Medicaid Services 7500 Security Boulevard Baltimore, Maryland 21244 RE: Advance Notice of Methodological Changes for Calendar Year (CY) 2014 for Medicare Advantage (M

Regulatory Comments

Studies on Hospital Readmissions, Featuring Health Plan Innovations and Comparisons of Medicare Advantage (MA) and Medicare’s Traditional FFS Program

Studies on Hospital Readmissions, Featuring Health Plan Innovations and Comparisons of Medicare Advantage (MA) and Medicare’s Traditional FFS Program.

Reports/Research/White Papers | Center for Policy and Research

The Coalition for Medicare Choices: Working Together to Save Medicare Advantage

The Coalition for Medicare Choices is a rapidly growing organization of Medicare Advantage beneficiaries. More than 1.4 million Americans in 50 states have joined the Coalition to protect the benefits they receive through their Medicare Advantage plan. Together, we are working to show Congress that Medicare Advantage plans provide critical benefits and lower out-of-pocket costs to millions of beneficiaries. As Congress debates potential changes to Medicare Advantage, we will make certain that your voices are heard. The Coalition for Medicare Choices is administered by America's Health Insurance Plans, the national association representing nearly 1,300 member companies providing health insurance coverage to more than 200 million Americans.

Advocacy and Coalition Websites