Get the facts on Medicare Advantage and the Drive to Health Equity

FAST FACTS:

• Latino MA beneficiaries spend an average of $1,334 less compared to FFS Medicare. Black Medicare beneficiaries spend an average of $1,607 less compared to FFS Medicare.
• Across all demographics, Medicare Advantage has a 44% lower rate of cost burden than FFS Medicare.

• Research shows that 69% and 65% of Latino and Black Medicare beneficiaries, respectively, choose enrollment in Medicare Advantage, compared to the 51% overall Medicare Advantage enrollment rate for the general population.

• A December 2021 CMS report found “substantial progress in the reduction of inequities in the patient experience for Black beneficiaries” in Medicare Advantage and “substantial improvement for Black and [Latino] beneficiaries in the area of clinical care.”
• The study went on to note “substantial reductions” in inequities for Black and Latino beneficiaries on access to the annual flu vaccine.
• The CMS study explained that lessons drawn from further investigation into the success of Medicare Advantage in addressing health disparities “could potentially be applied to ensure continued progress toward greater health equity for all beneficiaries.

• A January 2022 letter from the National Hispanic Medical Association, National Medical Association, and Asian & Pacific Islander American Health Forum explains, “Our organizations share in the [Biden] Administration’s goal to improve health equity, and believe MA is critical to achieving that goal … To build on the progress already made to improve health outcomes and advance health equity for seniors in MA, we must protect MA from any payment reductions or policies that would negatively impact seniors in MA.”
• Likewise, an April 2022 op-ed co-authored by leaders at the National Black Nurses Association and Morehouse College explained that, “It is incumbent upon policymakers to look closely at these equity-enhancing lessons found in Medicare Advantage and consider ways to carry that innovation forward across the health care system.”

• Analysis from ATI Advisory finds that Black and Latino beneficiaries are more likely to report receiving routine health care services, including mammograms, flu shots, blood pressure screenings, and cholesterol checks, when enrolled in Medicare Advantage as compared to FFS Medicare.
• Across all demographics, Medicare Advantage beneficiaries see a 43% lower rate of avoidable hospitalizations and a 5% lower rate of all-cause readmissions, compared to FFS Medicare. Medicare Advantage beneficiaries also have a 21% higher rate of seeing a physician within 14 days of a hospital discharge.

• Medicare Advantage’s continued success in delivering more affordable, quality, equitable, and person-centered coverage and care to a diverse beneficiary population depends on continued support and stability from regulators and policymakers. As CMS considers future rule- making, we should build on what works and protect the innovations and flexibilities that are accelerating the drive to health equity through Medicare Advantage.

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