Medicare Advantage Enrollment Increases in 2024

Summary: In 2024, nearly 51% of all Medicare beneficiaries chose to enroll in a Medicare Advantage plan. This accounts for over 31 million enrollees, a record number for Medicare Advantage enrollment. Medicare Advantage enrollment is projected to grow to 62% of the total Medicare enrollment by 2033. Estimated Read Time: 6 min

Table of Contents:

1. Medicare Advantage Enrollment on the Rise
2. Why Are Medicare Advantage Plans So Popular?
3. Why Are Medicare Advantage Plans So Popular?
4. Learn More About Medicare Advantage Plans in Your Area

For the first time since their debut in 2003, Medicare Advantage plan enrollment has surpassed Original Medicare enrollment. In 2024, over 31 million enrollees chose to enroll in a Medicare Advantage plan, accounting for nearly 51% of all Medicare beneficiaries.

This is a significant accomplishment for Medicare Advantage carriers as the program only accounted for about 33% of enrollees a decade ago.

Since hitting the market, Medicare Advantage plans have been on a steady climb in terms of enrollment percentage. However, with specific changes in network restrictions, plan availability, and available benefits, Medicare Advantage plans have been able to take the top spot when it comes to Medicare coverage.

Medicare Advantage Enrollment on the Rise

The trend of Medicare Advantage enrollment on the rise has significant implications for the landscape of healthcare coverage among Medicare beneficiaries. According to KFF, in 2023, nearly one third of Medicare beneficiaries lived in a county where at least 60% of all Medicare enrollees were enrolled in a Medicare Advantage plan. This number has since increased as the average Medicare enrollee has access to approximately 43 Medicare Advantage plans in any given state across the U.S. in 2024.

An increase in available Medicare Advantage plans means an increase in enrollment opportunities for beneficiaries. With more plans on the market, Medicare beneficiaries are able to compare more plans to find an option that is suitable for their needs.

As the number of Medicare Advantage plan enrollees increase, the number of Original Medicare enrollees decrease. This ripple effect leads to making the total number of Medicare Supplement plan enrollees decrease as a result. With less enrollees, Medicare Supplement plan premiums could be impacted. As less people enroll in a plan, monthly premiums tend to raise in order for the plan to pay out benefits for each of its enrollees. In order for premiums to stay consistent for Medicare Supplement plans, there needs to be a steady number of new enrollees in the plan each year.

For now, however, there is no concern for a raise in Medicare Supplement plan premiums due to the rise in Medicare Advantage enrollment. The market conditions and competition among Medicare Advantage plans may be contributing to this stability, ensuring that all beneficiaries have options regardless of their needs.

Why Are Medicare Advantage Plans So Popular?

It is no secret that Medicare Advantage plans have risen in popularity throughout the last several years. A big contributing factor to this onset popularity has to do with the plan availability and benefits.

Medicare Advantage plans extend coverage beyond what is provided by Original Medicare. This comprehensive approach appeals to beneficiaries looking for an all-in-one solution to address their individual healthcare needs.

Alongside their benefits, unlike Original Medicare, Medicare Advantage plans feature a cap on out-of-pocket expenses, providing beneficiaries with a sense of financial security. The moment you enroll in a Medicare Advantage plan, you know the maximum amount you will spend on approved healthcare costs for the year.

With Original Medicare, you are responsible for per-occurrence deductibles and 20% coinsurance for most services you receive, with no cap on your out-of-pocket spending.

Additionally, Medicare Advantage plans often offer care coordination services, streamlining the healthcare experience for beneficiaries. Care coordination can include assistance with appointment scheduling, prescription management, and overall coordination of healthcare services. The convenience offered by care coordination adds to the popularity of these plans.

The increasing popularity of Medicare Advantage plans is a response to the ever-changing needs of Medicare beneficiaries.

What Does the Future Look Like for Medicare Advantage?

Medicare Advantage plans are on the rise and the end of their reign is nowhere in sight. According to the Congressional Research Service, Medicare Advantage enrollment is projects to grow to 62% of the total Medicare enrollment by 2033. This would be a significant change from previous years and shows no stunt to Medicare Advantage growth.

As Medicare Advantage plans continue to increase availability and adapt to enrollees needs, it is no question that they will continue to gain popularity among Medicare-eligible individuals.

Learn More About Medicare Advantage Plans in Your Area

It is important to do your research before enrolling in a health insurance plan, especially when you enroll in a Medicare Advantage plan. As you age, adequate health care becomes more and more essential for your overall wellbeing. To review Medicare Advantage plans in your area, fill out our online rate form today! We can connect you to a licensed insurance agent who will help review your options and find the plan that is suitable for you!