Can Medicare Advantage Plans Buck the Downward Trend?

KENNEBUNK, Maine--(BUSINESS WIRE)-- Medicare Advantage plans reported enrollment of 10,971,598 for January 2010, down -2.8% from one month ago. Meanwhile, stand-alone prescription drug plans (PDPs) gained 70,195 members between December 2009 and January 2010 for a total of 17,664,256 enrollees as of January 1, 2010.

The latest reports from the Centers for Medicare & Medicaid Services (CMS) are the first true indication of open enrollment results. “The downward trend for Medicare Advantage is troublesome,” said Debra A. Donahue, VP of Market Analytics for Mark Farrah Associates (MFA). “Though year-over-year enrollment is up 5.2%, sustaining Medicare Advantage levels with reimbursement cuts on the way has been challenging for plans nationwide.” MFA found Medicare Advantage declines in almost every state except Minnesota, Georgia and Ohio.

Mark Farrah Associates cautions that this is only a preliminary look at 2010 open enrollment results because January 2010 data includes transactions posted through December 11, 2009. Open enrollment didn’t end until December 31, 2009 and previously enrolled Medicare Advantage members have the option to switch plans through the end of March 2010. Consolidations, terminations and withdrawals from the program contributed significantly to the Medicare Advantage decline. But the underlying question as open enrollment results surface – Did a significant number of beneficiaries decide to leave Medicare Advantage and go back to fee-for-service Medicare? MFA will revisit this important question as soon as CMS releases February 2010 data.

January 2010 Medicare Advantage and PDP membership data by plan and location, with monthly trends from 2006 through 2010 is available now in Medicare Business Online^TM. To support plans preparing for the 2011 Medicare bid process, MFA in partnership with Strenuus maintains the Medicare Benefits Analyzer ^TM. Strenuus also offers provider network development tools and consults with plans to help them meet CMS guidelines. For more information about these products, visit www.markfarrah.com or call 207.985.8484.

About Mark Farrah Associates (MFA)

MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Medicare Business Online™, Medicare Benefits Analyzer™, Health Coverage Portal™, Health Insurer Insights™ and Health Plans USA™.

Mark Farrah Associates
Debra Donahue, 207-985-8484

Source: Mark Farrah Associates