Health Affairs March 24, 2022
After a 9 percent increase from 2021 to 2022, enrollment in the Medicare Advantage (MA) program is expected to surpass 50 percent of the eligible Medicare population within the next year. At its current rate of growth, MA is on track to reach 69 percent of the Medicare population by the end of 2030.
The subsidies fueling MA’s rapid expansion are well-documented. They include: benchmarks set explicitly above fee-for-service (FFS) spending in the traditional Medicare (TM) program; quality bonuses that add to total payments (in contrast to budget neutral bonuses for accountable care organizations [ACOs]); payment increases from diagnosis coding that elevates risk scores above 105.9 percent of TM levels, thus exceeding the current 5.9 percent coding adjustment designed to...
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