Medicare Advantage – the Value Plan

GAO just came out with a report announcing that Medicare Advantage enrollment increased 6 percent between April 2010 and April 2011 – to 8.4 million beneficiaries – and that the average premium decreased 14 percent between 2010 and 2011.  The White House blog and key Senators are citing the GAO report’s findings and touting the success of the program in offering value to seniors.  However, I have to note that the GAO’s statistics are way out of date.  As of October 2011, there were 12.1 million beneficiaries enrolled in MA plans.  The open enrollment season for 2012 is currently under way and MA plans are predicting a 10 percent increase in enrollment by January 1, 2012. It could be even higher since the average MA premium decreased again for the second year in a row.  The GAO report includes CMS comments noting that premiums for 2012 are 4 percent lower than 2011 and 11.5 percent lower when compared to 2010.