Revising payment to Medicare Advantage plans to reflect the rapid growth in enrollment

In recent years, Medicare Advantage (MA)—private health plans that beneficiaries can enroll in as an alternative to traditional Medicare—has grown rapidly.  MA enrollment is projected to represent the majority of Medicare beneficiaries enrolled in both Part A and Part B by 2023. But this rapid growth has come with consequences. Basing payment on the experience of those who remain in traditional Medicare has proven challenging to pursue in a fiscally responsible manner. The consistent overpayment of MA plans over many years weighs increasingly on the Medicare trust funds and the federal budget.

On Friday, July 15, the USC-Brookings Schaeffer Initiative for Health Policy hosted a conversation on the implications of the rapid growth in MA. Erin Trish, co-director of the USC Schaeffer Center for Health Policy and Economics, presented data on the rapid and pervasive increase in MA penetration. Dr. Meena Seshamani, Centers for Medicare and Medicaid Services (CMS) deputy administrator and director of the Center for Medicare, then outlined how MA can support the CMS vision for Medicare to advance health and equity, expand access, drive high-quality, person-centered care, and promote affordability and sustainability in the Medicare program.

The webcast concluded with a panel discussion including Matthew Fiedler (The Brookings Institution), Gail Wilensky (Project HOPE), and Clive Fields (VillageMD), moderated by Paul Ginsburg (USC Schaeffer Center for Health Policy and Economics).

Viewers submitted advance questions for our speakers and follow along with the conversation on Twitter using the hashtag #MedicareAdvantageGrowth or via email at events@brookings.edu.