Medicare Advantage enrollment continues to grow despite funding cuts, analysis shows

Enrollment in Medicare Advantage continues to grow despite steep funding cuts in recent years.

At least 15.4 million individuals will be enrolled in private Medicare plans this year, up from 14.6 million in 2013, according to a new analysis of enrollment files by Avalere Health. That's an increase of 5.5%, continuing a trend of robust growth in Medicare Advantage enrollees in recent years. Nearly 30% of all Medicare beneficiaries are now covered through private plans.

The Patient Protection and Affordable Care Act included $136 billion in direct cuts to Medicare Advantage, and an additional $70 billion in indirect cuts, according to the Congressional Budget Office (PDF). That was expected to result in 4.8 million fewer enrollments in private Medicare plans by 2019, the CBO estimated.

But as evidenced by the latest enrollment figures, that decline in Medicare Advantage customers has so far failed to materialize. America's Health Insurance Plans has started a marketing campaign, “Seniors Are Watching,” to fight the enactment of any additional cuts to the program.

Enrollment in Medicare prescription drug plans also continues to grow. In 2014, at least 36.6 million seniors will be signed up for Medicare Part D plans, up from 35.2 million last year, a 4% increase, according to Avalere. UnitedHealthcare and Humana continue to have the largest number of Medicare prescription drug enrollees, with 8 million and 5.8 million members respectively.

The numbers for both Medicare Advantage and Medicare Part D plans likely underestimate the total number of enrollees. That's because the files analyzed by Avalere went only through Dec. 4. The open-enrollment period didn't close until three days later.

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