Price Sensitive Medicare Advantage Enrollees Continue to Favor $0-Premium Plans and Lower Deductibles, eHealth Report Finds

Rhea-AI Summary

eHealth's seventh annual Medicare Index Report reveals stable Medicare Advantage premiums, decreasing average deductibles, and rising Medicare Supplement plan premiums. The report highlights that 84% of Medicare Advantage enrollees opt for $0 premium plans, with an average deductible below $100 for the first time.

Insights

Health Insurance Market Analyst

The stability of the average Medicare Advantage premium at $9 monthly, as reported, indicates a competitive market where insurers are likely managing to keep costs under control. This trend is beneficial for beneficiaries, as it suggests that they can access Medicare Advantage plans without worrying about significant premium hikes year over year. However, the drop in the average deductible for Medicare Advantage plans to below $100 is notable. A lower deductible could potentially increase plan utilization, as lower out-of-pocket costs may encourage beneficiaries to seek more medical services. This could lead to higher overall healthcare spending but may also result in better health outcomes if it means beneficiaries are more proactive in managing their health.

Contrastingly, the increase in the average deductible for Part D plans by 14% is a concern. This rise could deter beneficiaries from opting for these plans or from adhering to their medication regimens, which may have negative implications for both health outcomes and long-term healthcare costs. The decrease in monthly premiums for Part D plans, while positive, may not fully offset the impact of the higher deductibles for cost-sensitive beneficiaries.

The 9% increase in the average premium for Medicare Supplement plans reflects the growing costs in healthcare and potentially greater demand for these plans. As these plans offer additional benefits, the rise in premiums could be indicative of beneficiaries seeking more comprehensive coverage, possibly in response to rising healthcare costs elsewhere. This trend warrants close monitoring as it may affect the affordability and attractiveness of these supplemental plans over time.

Healthcare Economist

The report's findings have implications for the broader healthcare economy. The preference for $0 premium Medicare Advantage plans by 84% of enrollees underscores a significant consumer demand for cost-saving options in healthcare. This trend could signal a shift in consumer behavior towards more economical healthcare solutions, which may influence how insurance companies design their products and services. Additionally, the trend could have a ripple effect on the healthcare industry, potentially driving down costs as providers and insurers strive to meet this demand.

From an economic standpoint, the shifts in premiums and deductibles across different Medicare plans reflect underlying changes in healthcare cost structures and risk management strategies by insurers. The balance between premiums and out-of-pocket costs is a critical factor in consumer decision-making. Insurers' ability to maintain or reduce premiums while managing deductibles will be pivotal in ensuring the sustainability of these plans and the broader Medicare system. The report's data could provide valuable insights for policymakers and healthcare providers as they navigate the complexities of healthcare financing and strive to maintain a balance between affordability, access and quality of care.

Senior Citizen Advocate

For the senior population, the trends highlighted in the report have direct implications for their financial planning and healthcare access. The finding that the majority of Medicare Advantage enrollees opt for $0 premium plans reflects the importance of affordability in healthcare for seniors. As fixed-income individuals, many seniors must carefully balance their healthcare needs with their financial constraints. The decrease in the average deductible for Medicare Advantage plans is a positive development, as it reduces the financial barrier to accessing care.

However, the increase in the average deductible for Part D plans raises concerns about medication affordability. Medications are often a critical component of senior healthcare and higher deductibles could lead to medication non-adherence, which can worsen health outcomes and increase long-term healthcare costs. Advocacy groups may use this data to push for policy changes that help mitigate these cost increases.

Lastly, the increase in Medicare Supplement plan premiums may necessitate that seniors evaluate the cost-benefit of these plans more closely. While these plans can offer valuable additional coverage, the rising costs may make them less accessible for some. This highlights the need for continued advocacy for affordable supplemental coverage options for the senior population.

eHealth's seventh annual Medicare Index Report tracks plan cost and selection trends among 190,000+ beneficiaries

84% of Medicare Advantage enrollees choose plans with $0 premiums; average deductible drops below $100 for the first time

AUSTIN, Texas, March 7, 2024 /PRNewswire/ -- For deeper insights into Medicare insurance trends, look beyond what's merely available in the market for beneficiaries to choose from. Look instead at what they actually select for themselves. eHealth's seventh-annual Medicare Index Report sets itself apart from other market analyses by doing just that.

New original research published today by eHealth, Inc. (Nasdaq: EHTH) (eHealth.com), a leading online private health insurance marketplace, highlights average costs and plan selection trends among Medicare beneficiaries who chose Medicare Advantage and Part D plans through eHealth during the Annual Enrollment Period (AEP) for 2024 coverage. Highlights:

• Average Medicare Advantage premium is stable, deductible is down: $9 is the average monthly premium among Medicare Advantage plans selected by eHealth customers during the AEP for 2024 coverage, a figure unchanged from the previous year; for the first time since eHealth began tracking it, the average deductible fell below $100 ($95 for 2024).
  
  
• Average Part D plan premium is also down, but average deductible is up: $29 is the average monthly premium for stand-alone Medicare Part D plans selected by eHealth customers during AEP, down 9% from the year prior ($32); meanwhile, the average deductible for Part D plans increased 14%, from $389 to $445.
  
  
• Average premium for Medicare Supplement plans is up this year: Though enrollment in Medicare Supplement (Medigap) plans is not governed by AEP, the average premium for plans selected by eHealth customers during this period is up 9% year over year, from $173 to $189 per month.

Read the full report.

eHealth's research is based on an analysis of more than 190,000 plan selections by Medicare beneficiaries at eHealth during Medicare's recent Annual Enrollment Period for 2024 coverage (October 15 through December 7, 2023). Refer to the methodology note in the report for more details.

No information relevant to eHealth's financial performance should be drawn from this report. Like other insurance brokers, eHealth is compensated on a fixed per-member basis for Medicare Advantage and Part D plans, as regulated by the Centers for Medicare and Medicaid Services, and on a percentage of premium basis for most Medicare Supplement plans.

About eHealth (NASDAQ: EHTH)
We're Matchmakers. For over 25 years, eHealth has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford. As a leading independent licensed insurance agency and advisor, eHealth offers access to over 180 health insurers, including national and regional companies.

For more information, visit ehealth.com or follow us on LinkedIn, Facebook, Instagram, and X. Open positions can be found on our career page.

Media inquiries, please contact: pr@ehealth.com 

 

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SOURCE eHealth, Inc.

FAQ

What are the key findings of eHealth's seventh annual Medicare Index Report?

The report shows stable Medicare Advantage premiums, decreasing average deductibles, and rising Medicare Supplement plan premiums. It also highlights that 84% of Medicare Advantage enrollees choose $0 premium plans, with an average deductible below $100 for the first time.

How many beneficiaries were tracked in the report?

The report tracks trends among over 190,000 beneficiaries who selected Medicare Advantage and Part D plans through eHealth during the Annual Enrollment Period for 2024 coverage.

What is the average monthly premium for Medicare Advantage plans selected by eHealth customers?

The average monthly premium for Medicare Advantage plans selected by eHealth customers during the AEP for 2024 coverage is $9, remaining unchanged from the previous year.

How does the average deductible for Medicare Advantage plans compare to previous years?

For the first time since tracking began, the average deductible for Medicare Advantage plans fell below $100, reaching $95 for 2024 coverage.

What is the average monthly premium for stand-alone Medicare Part D plans selected by eHealth customers?

The average monthly premium for stand-alone Medicare Part D plans selected by eHealth customers during AEP is $29, down 9% from the previous year.

How has the average deductible for Part D plans changed?

The average deductible for Part D plans increased by 14%, from $389 to $445, despite the decrease in average monthly premiums.

Is the average premium for Medicare Supplement plans up or down this year?

The average premium for Medicare Supplement plans selected by eHealth customers during the AEP is up 9% year over year, from $173 to $189 per month.