The Medicare Advantage Program in 2014. Since the Affordable Care Act: Medicare Advantage Premiums Have Fallen and Benefits Have Remained Stable

04/07/2014

Medicare Advantage plans have responded to the Affordable Care Act incentives by becoming more competitive for enrollment by reducing or holding steady their beneficiary premiums; MA plans have not responded with an increase in beneficiary premiums. Figure 3 shows that since the passage of the Affordable Care Act, average MA premiums are down by 10 percent.32 The average MA premium in 2014 is projected to increase by only $1.64 from last year, coming to $32.60.33

Over 80 percent of Medicare beneficiaries have access to a MA-PD plan (MA plan with Part D drug coverage) with a yearly maximum out-of-pocket limit of $3,400 or less. All MA enrollees are in plans that will have a maximum out-of-pocket limit for all Medicare covered services of $6,700 or lower. Additionally, access to MA supplemental benefits, such as dental and vision benefits, has generally remained stable.34

Figure 3

Trend in Average Medicare Advantage Premiums, 2007-2014

Figure 3: Trend in Average Medicare Advantage Premiums, 2007-2014

Note: 2007-2013 data is weighted by July enrollment of the plan year, 2014 data is weighted by plan projected enrollment.

Source: Centers for Medicare & Medicaid Services


32 Centers for Medicare & Medicaid Services, “More, higher quality options for seniors in Medicare Advantage,” Press Release, September 19, 2013, accessed at http://www.hhs.gov/news/press/2013pres/09/20130919b.html.

33 Centers for Medicare & Medicaid Services, “More, higher quality options for seniors in Medicare Advantage,” Press Release, September 19, 2013, accessed at http://www.hhs.gov/news/press/2013pres/09/20130919b.html.

34 Centers for Medicare & Medicaid Services, “More, higher quality options for seniors in Medicare Advantage,” Press Release, September 19, 2013, accessed at http://www.hhs.gov/news/press/2013pres/09/20130919b.html.

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