The headwinds facing group Medicare Advantage growth
January 02, 2023
New York City’s struggle to switch more than a quarter-million retired government workers and their dependents from traditional Medicare to private health insurance could set an alarming precedent for employers and insurers banking on the fast-growing group Medicare Advantage program.
Cost-conscious employers offering retiree benefits are increasingly adopting such plans as alternatives to existing commercial health plans or traditional Medicare coverage. Membership through group plans represents nearly 20% of the 29.5 million individuals enrolled in Medicare Advantage, and the number of patients enrolled through this kind of coverage more than doubled over the last decade, according to the latest federal data.