Market Concentration and Potential Competition in Medicare Advantage

Concentration in Medicare Advantage markets between 2009 and 2017 may have been driven by consolidation in the health insurance industry generally, concentration in provider markets, and Medicare policy changes

ABSTRACT

• Issue: Medicare Advantage (MA), the private option to traditional Medicare, now serves roughly 37 percent of beneficiaries. Congress intended MA plans to achieve efficiencies in the provision of health care that lead to savings for Medicare through managed competition among private health plans.
• Goal: Two elements are needed for savings to accrue: a sound payment...