Chronic Disease Prevalence and Medicare Advantage Market Penetration: Findings From the Medical Expenditure Panel

Steven W Howard1, Stephanie Lazarus Bernell2, Faizan M Casim3

  • 1Health Management and Policy, Saint Louis University, St Louis, MO, USA.

Insights

Higher Medicare Advantage (MA) plan enrollment is linked to better cardiometabolic health outcomes for beneficiaries. Increased MA market penetration correlates with a reduced burden of chronic disease, suggesting positive population-level health impacts.

Area of Science:

  • Health Services Research
  • Public Health
  • Health Economics

Background:

  • Medicare Advantage (MA) plans are increasingly popular, with 30% of beneficiaries enrolled by March 2015.
  • Existing research has not investigated the effects of MA market penetration on health outcomes.
  • Understanding these impacts is crucial for evaluating healthcare policy and beneficiary well-being.

Purpose of the Study:

  • To examine the relationship between Medicare Advantage market penetration and the cardiometabolic disease burden of Medicare beneficiaries.
  • To assess how the prevalence of MA plans influences the health status of individuals with chronic conditions.

Main Methods:

  • Utilized 2004-2008 Medical Expenditure Panel Survey (MEPS) Household Component data.
  • Constructed a Chronic Disease Severity Index (CDSI) to measure the portfolio of cardiometabolic diagnoses.
  • Merged MEPS data for 8089 beneficiaries with MA market penetration data from CMS.
  • Employed ordinary least squares regression analysis using SAS 9.3.

Main Results:

  • Each 1% increase in MA market penetration was associated with a >2-point decrease in the CDSI.
  • This indicates a reduced burden of cardiometabolic chronic disease in areas with higher MA penetration.
  • Findings suggest potential positive spill-over effects on the health of the broader beneficiary population.

Conclusions:

  • Higher Medicare Advantage market penetration is associated with improved cardiometabolic health outcomes among Medicare beneficiaries.
  • The study highlights the potential public health benefits of increased MA plan adoption.
  • Further research into spill-over effects is warranted to fully understand MA's population health impact.

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