Medicare Advantage Approaches Significant Growth Projection, Says Cavulus CEO | national news
PITTSBURGH, January 11, 2022 / PRNewswire / – Medicare Advantage (MA) may soon represent the majority of all Medicare members according to Patrick phillips, CEO of Cavulus, a leading provider of technology serving the Medicare Advantage industry.
Phillips predicts that the current 26 million Medicare Advantage beneficiaries will surpass the 30 million mark this year, as recent industry research indicates. “This places MA on the verge of accounting for 50% of all Medicare coverage options – a milestone our industry did not anticipate until 2025,” he said.
Despite persistent challenges from the ongoing Covid pandemic, Phillips predicts another year of significant growth for the industry as the Annual Election Period (AEP) ended a month ago, but registration numbers will only be counted in February.
Cavulus CEO attributes MA’s popularity to affordability, wealth of benefits, and industry adaptability to consumer preferences. “Medicare Advantage (MAO) organizations are innovating and introducing new benefits, but there is also a responsiveness in the types of comprehensive plans offered,” he said. ”
Phillips cites new data from the Kaiser Family Foundation which shows that “in 2022, more than a third of the plans (37%) offered are local PPOs, up from a quarter in 2018”. Beyond that, he stressed that many grantees want the freedom to seek doctors and specialists outside of a defined network, noting that this is a necessity for snowbirds and people with second homes, this which drives demand for Preferred Supplier Organizations (PPOs).
Another example is the prevalence of special needs plans or “SNPs” which are designed for beneficiaries in very narrow economic or health demographics. Kaiser research reported that “more SNPs are available for 2022 than in any year since they were authorized.”
Phillips was particularly encouraged by the growth of chronic SNPs or C-SNPs created to serve members with conditions such as ESRD, diabetes and cardiovascular disease, noting that “these MAOs organize highly specialized networks and services. and provide care support to these specific beneficiaries. “
“There are 20 new entrants to the MA market for 2022, which is impressive,” Phillips said. He sees increased competition as the path to innovation, better quality and better results.
ABOUT CAVULUS – Cavulus is a technology-driven specialist in Medicare Advantage insurance solutions. Its cloud-based Medicare Advantage platform (Cavulus MAP ™) unifies marketing, sales and enrollment operations, and is used by many major US insurers, including several BlueCross / BlueShield, UPMC Health Plan, John hopkins, Lumeris and United Healthcare. For more details: www.cavulus.com.
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