Medicare Advantage Competition Intensifies, USA

Main Category: Medicare / Medicaid / SCHIP
Article Date: 12 Dec 2007 - 3:00 PDT

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Competition has intensified in the Medicare Advantage open market, according to Mark Farrah Associates (MFA). Based on a comparison of Medicare Advantage Landscape Files released by The Centers for Medicare & Medicaid Services (CMS), and information provided through Medicare Business Online™, MFA has found that 165 companies are vying for members in 2008, up from 154 during 2007 open enrollment. These companies are targeting the substantial market of beneficiaries shopping for coverage options by December 31st.

A comparison of the 2007 and 2008 Landscape Files suggests that 17 new companies are offering traditional Medicare Advantage (MA) plans for 2008. These companies include HealthMarkets, which has made a Private-fee-for-service (PFFS) plan available in 29 states; the Mennonite Mutual Aid Association (2 PFFS plans available in 20 states), and AmeriGroup, which has secured CMS contracts to compete for traditional MA business in 2008.

As of October 2007, the 165 companies with traditional MA plans had an aggregate of 523 contracts with CMS. Collectively they offer 2,741 MA plans for 2008. Approximately 78% were carried over from 2007. Additionally, applications were submitted for 115 new contracts for 2008.

Across the states, beneficiaries continue to have many plan type choices. Of note is the expanded reach of Medical Savings Accounts, now offered in all 50 states and the District of Columbia. PFFS plans, health maintenance organizations (HMOs) and local preferred provider plans (PPOs) are also widely available. A large proportion of MA contracts include Part D coverage as well-only 31 of the 523 contracts do not include prescription drug plan options.

For a more in-depth look at Medicare data and information, MFA recommends Medicare Business Online™, an online portal that offers up-to-date coverage of MA and PDP growth and competition. Medicare Business Online™ provides state and county data for all 50 states, along with detailed analysis comparing plans. For a free 10-day access to Medicare Business Online™ register on the MFA website by December 14, 2007 (Please click here).

About Mark Farrah Associates (MFA)

Since 1997 Mark Farrah Associates (MFA) has been recognized as a leader in analyzing health insurance business. Committed to simplifying the analysis of the health insurance industry by providing market data and analysis tools, our products include Medicare Business Online™, the Health Coverage Portal™, Health Insurer Insights™, and Health Plans USA™.

Mark Farrah Associates