2014: Rural Medicare Advantage Enrollment Update

Area of Science:

• Health Services Research
• Demographics
• Public Health Policy

Background:

• Reclassification of rural and urban counties based on 2010 census data impacted Medicare beneficiary counts.
• A significant number of Medicare beneficiaries reside in rural areas, with Medicare Advantage (MA) and prepaid plans being a key coverage option.

Purpose of the Study:

• To analyze the trends in Medicare Advantage and other prepaid plan enrollment among rural beneficiaries following the reclassification of county designations.
• To examine the types of MA plans chosen by rural beneficiaries and identify states with high enrollment percentages.

Main Methods:

• Analysis of Medicare beneficiary data, comparing enrollment figures before and after the 2010 census data reclassification.
• Categorization of rural MA enrollment by plan type (PPO, HMO/POS, PFFS, other prepaid plans).

Main Results:

• Reclassification led to a 10% decrease in the rural Medicare-eligible population, but the percentage of rural beneficiaries in MA plans only slightly declined (20.6% to 20.3%).
• Rural MA enrollment increased by over 216,000 from March 2013 to March 2014, reaching nearly 1.95 million (20.3%).
• Preferred Provider Organization (PPO) plans were the most popular choice for rural MA enrollees (56%), followed by HMO/POS plans (29%).

Conclusions:

• Despite changes in county designations, Medicare Advantage remains a significant and growing option for rural Medicare beneficiaries.
• Understanding enrollment patterns and plan preferences is crucial for ensuring adequate healthcare access in rural populations.