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Why Does Medicare Advantage Work Better Than Marketplaces?

Robert Wood Johnson Foundation January 30, 2018
Holahan J, Skopec L, Wengle E, and Blumberg L

Analysis examines why Medicare Advantage plans continued to thrive in 2017 as Affordable Care Act marketplace plans struggled and makes recommendations for improvements to the marketplace based off Medicare Advantage’s successes.

 

The issue

Medicare Advantage (MA) markets are significantly more robust, with higher private insurer participation and lower average premium growth than the Affordable Care Act (ACA) marketplaces. The programs differ in insurer participation, the risk-adjustment system, and provider payments.

Key Findings

Based on MA’s success relative to the ACA marketplaces in terms of marketplace strength and long-term stability, there are five policies that could be useful for the ACA marketplaces:

  • Raise enrollment...

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Topics: ACA (Affordable Care Act), Market Research, Medicare Advantage, Payer
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2018-01-30T15:11:51-05:00
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