AXIOS August 21, 2023
Already struggling rural hospitals see an increasing financial threat from the steady growth in Medicare Advantage enrollment.
Why it matters: Lacking the bargaining powers of their larger peers who depend on commercial payers to turn a profit, some rural hospitals are losing money on private coverage like Medicare Advantage. The Medicare alternative’s popularity with seniors is cutting into a typically better funding source for rural hospitals — traditional Medicare — as hundreds of rural hospitals face down financial calamity.
Context: Over half of Medicare enrollees are now enrolled in Medicare Advantage, up from a third less than a decade ago. That growth hasn’t just been confined to big metropolitan areas — in a third of rural counties, Medicare Advantage accounts...