Our Take: A KFF analysis of Medicare claims data finds that beneficiaries who disenrolled from Medicare Advantage and returned to traditional Medicare incurred 27% higher spending, an average of $2,585 more per person annually. Skilled nursing facility care was the single largest driver of this gap at 34%, indicating the care MA plans suppressed or deferred through prior authorization and network restrictions is concentrated in the post-acute setting. ▼
For SNFs, this pattern signals that MA disenrollees transitioning to traditional Medicare are likely to present with higher acuity and complex care needs that require immediate resource allocation and appropriate length-of-stay planning.
“People with greater health needs may see multiple providers and require numerous specialty services, resulting in greater burden from limited provider networks, prior authorization, and referral requirements Medicare Advantage plans often employ.”
— KFF, 6 December 2024
Source Biniek, Jeannie Fuglesten, et al. Medicare Spending was 27% More for People who Disenrolled from Medicare Advantage than for Similar People in Traditional Medicare. KFF, 6 December 2024. https://www.kff.org/medicare/issue-brief/medicare-spending-was-27-percent-more-for-people-who-disenrolled-from-medicare-advantage-than-for-similar-people-in-traditional-medicare/
Medicare spending jumps 27 percent when patients leave Medicare Advantage plans
“Medicare spent 27% more — an average of $2,585 per person — for beneficiaries who disenrolled from MA plans compared to those continuously enrolled in traditional Medicare during 2022. Skilled nursing facility spending accounted for 34% of this cost difference, followed by outpatient hospital spending at 23% and inpatient hospital spending at 20%.”
— McKnight’s Long-Term Care News, 7 December 2024
