Eligible seniors may opt to receive their health benefits through Original Medicare or a Medicare Advantage (MA) Plan. The rate of seniors who are choosing Medicare Advantage Plans has been growing the last several years. In 2019, about 34% of seniors opted to receive their Medicare benefits through a Medicare Advantage Plan. The share increased to 39% in 2020 and is projected to grow to 47% by 2029. It’s no wonder their popularity is growing; Medicare Advantage Plans offer their members many additional perks and advantages over Original Medicare.
Top 4 reasons Medicare Advantage Plans are popular
1. Higher quality of care
Medicare Advantage Plans are part of a Star Ratings system that gives providers an incentive to offer quality service over quantity. They do this by coordinating care with health providers and local health systems; the result is better health outcomes and lower costs. On a practical level, this means doctors are less likely to order unnecessary tests and procedures that lead to unnecessary hospitalizations.
Since Medicare Advantage Plans were launched in 2003, significant progress has been made on quality of care. Today, 78% of MA Plans have a rating of four or more stars compared to 52% just eight years ago. Member are happy too: 99% of MA Plan members are happy with their health insurance, compared to 85% of seniors on Original Medicare.