Healthcare DIVE September 9, 2025
The findings throw cold water on allegations from hospital groups that MA plans contribute to shrinking margins.
Dive Brief:
- Higher Medicare Advantage enrollment isn’t associated with a change in hospital margins, according to new research from congressional advisory group MedPAC.
- The report released Friday found a small association between higher MA penetration in a hospital’s geographic area and lower revenue and costs, but no relationship between MA penetration and a facility’s profit.
- The findings throw cold water on hospital allegations that the privatized Medicare plans are contributing to shrinking margins, especially for cash-strapped rural facilities.
Dive Insight:
The share of Medicare beneficiaries enrolled in MA has increased significantly over the past decade. Currently, roughly 35 million Americans, or...
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