BETTER MEDICARE ALLIANCE STATEMENT ON 2020 MEDICARE ADVANTAGE PREMIUMS AND ENROLLMENT GROWTH
Washington, D.C. - Better Medicare Alliance (BMA) President and CEO Allyson Y. Schwartz released the following statement in response to the Centers for Medicare& Medicaid Services announcement that Medicare Advantage premiums are projected to go down to their lowest level in 13 years for contract year (CY) 2020:
“It is great news for beneficiaries that the average Medicare Advantage monthly premiums are expected to decrease by 14% in 2020, while plan choices, benefits and enrollment continue to increase. In a time of premium increases in other markets, it is good to hear that premiums for Medicare Advantage beneficiaries will remain low.
“Enrollment in Medicare Advantage is expected to increase to 24.4 million beneficiaries, which is a 10% increase over 2019, with beneficiaries choosing Medicare Advantage projected to reach 40% of Medicare eligible individuals. Beneficiaries of all incomes are attracted to Medicare Advantage, with those who have low or moderate incomes and a higher percentage of minority populations choosing Medicare Advantage due to better benefits, reduced out-of-pockets costs and high-quality of care. The new flexibility in supplemental benefits in Medicare Advantage has already resulted in more Medicare Advantage plans offering new or expanded benefits to targeted populations.
“Given consumer worries about high out-of-pocket costs, this news shows the financial value of Medicare Advantage for seniors many of whom live on fixed incomes, with half living on less than $24,000 a year. Along with the high-quality coordinated care, additional benefits and annual out-of-pocket cost limits only available in Medicare Advantage, these financial protections make it clear why seniors and those with disabilities are choosing Medicare Advantage. These financial protections are enormously important to all beneficiaries’ ability to access vital health services.”
“As we look to 2020 and beyond it is important to recognize how sensitive beneficiaries are to price increases. The Administration and Congress need to continue to do all they can to protect Medicare Advantage beneficiaries from price increases that threaten their low out-of-pocket costs, their access to innovative care models and a stable marketplace.”