Medicare beneficiaries have more Medicare Advantage and Part D plans available for 2023 – InsuranceNewsNet
For 2023, the typical beneficiary has a choice of 43 Medicare Advantage plans as an alternative to traditional Medicare, new KFF analysis reveals. This represents an increase of 5 plans on average from 2022, adding even more choice to the Medicare Advantage marketplace, which is poised to become the dominant way for Medicare beneficiaries to obtain their coverage and healthcare.
Additionally, the typical beneficiary has a choice of 24 Medicare Part D standalone drug plans for 2023, a second KFF analysis findsone more than in 2022.
These results are presented in two notes published by KFF which provide an overview of the Medicare Advantage and Medicare Part D market for 2023, including the latest data and key trends. Medicare’s open enrollment period began October 15 and ends December 7.
Benefit of Medicare
More than 28 million Medicare beneficiaries — 48% of all eligible beneficiaries — are enrolled in Medicare Advantage plans, which are primarily HMOs and PPOs offered by private insurers. Enrollments are expected to cross the 50% threshold next year.
For 2023, a typical beneficiary has a choice of 43 Medicare Advantage plans in their local market, including 35 plans that offer Part D drug coverage. A total of 3,998 Medicare Advantage plans will be available across the country.
The average Medicare beneficiary can choose from plans offered by nine companies in 2023, the same number as in 2022. Even so, enrollment in Medicare Advantage is concentrated in plans operated by UnitedHealthcare and Humana, which together account for 46 % of Medicare Advantage enrollments in 2022. .
Two-thirds (66%) of Medicare Advantage plans charge no additional premium beyond the standard Medicare Part B premium, up from 59% in 2022. In 2023, almost all plans (97% or more) offer vision, fitness, telehealth, hearing or dental services, although the extent of coverage for these services varies.
The average Medicare beneficiary has a choice of 24 Part D stand-alone drug plans for 2023, one more than in 2022. The total number of Medicare Part D stand-alone drug plans that will be offered in 2023 increases by 5% to reach 801 packages. Fifteen companies are offering the plans, the lowest number since Part D began.
The estimated average monthly premium for Medicare Part D standalone drug plans is expected to be $43 in 2023, based on current enrollment, an increase of 10% from $39 in 2022. This rate increase exceeds both inflation and the cost of social security. -life adjustment for 2023. In the stand-alone drug plan market, more than 8 out of 10 enrollees next year are expected to participate in stand-alone plans operated by just four companies: CVS Health, Centene, UnitedHealth and Humana .
Average monthly premiums for the 16 national stand-alone pharmacare plans available in 2023 are expected to range from $6 to $111. Premiums are increasing for 12 of the 16 plans, including four plans with increases greater than $10.
Inflation Reduction Act
Starting in 2023, under a provision of the Inflation Reduction Act (IRA), Part D enrollees will pay no more than $35 per month for covered insulin products in all Part D plans, and will not pay any cost-sharing for adult vaccines covered by Part D. In addition, from 2023, drugmakers will be required to pay rebates for drug prices that rise more faster than the rate of inflation, which could help mitigate cost increases for Part D enrollees.
The new law also caps drug spending for Part D enrollees, starting in 2024, and requires Medicare to negotiate prices for some drugs, with negotiated prices first available for some Part D drugs. in 2026. recent KFF explainer summarizes these and other prescription drug provisions in the Reducing Inflation Act.