1 Out of 3 Pick Medicare Advantage for 2009

The landscape of Medicare has changed a great deal during the past few years. The supplemental coverage available is quite different than it was a few years ago. One of the main changes has been in the area of Part D drug coverage. Enter Medicare Advantage Drug Plans.

Studies have concluded that for 2009, 1 out of every 3 Medicare enrollees have selected Medicare Advantage Drug Plans. This is an interesting trend because Medicare Advantage was did not really come to the fore until about 5 years ago.

The Center for Medicare and Medicaid Services (CMS) along with Avalere Health, analyzed CMS data from their database to determine the trends. They found that enrollment in all types of MA-PD plans grew for 2009, picking up about 730,000 people relative to mid-2008 levels, while total enrollment in stand alone prescription drug plans, or PDPs, increased by about 140,000 individuals over the same period.

Because of economic factors, seniors chose more MA plans, which give them less choice (can’t choose your own doctor) but more stability in prices, co-pays and premiums. CVS/Caremark, Coventry and United Healthcare all did well for various reasons, such as $0 or very low premiums to low income subscribers.

Bonnie Washington, a Vice-President of Avalere Health summarizes things this way: “Economic forces are reshaping Medicare. Many beneficiaries appeared to vote with their feet by moving to drug plans with cheaper premiums, as there was a strong correlation between premiums and plan selection. The government was also protected by automatic switching of many low-income beneficiaries to the less expensive plans. Medicare beneficiaries are typically on a fixed income and will likely be looking for these kinds of savings going forward as well.”