“Medicare spending jumps 27 percent when patients leave Medicare Advantage plans”

“Medicare spending jumps 27 percent when patients leave Medicare Advantage plans,” by Donna Shryer, McKnights LTC News

“A new study found that Medicare beneficiaries who leave Medicare Advantage (MA) plans incur significantly higher healthcare costs after switching to traditional Medicare, with nursing facility care contributing the most to the increased spending. The analysis, released by KFF on December 6, found that 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 … The most pronounced spending difference appeared among dual-eligible beneficiaries – those qualifying for both Medicare and full Medicaid benefits. In this group, those who left MA plans had spending levels 61% higher than their counterparts in traditional Medicare.”

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

What this proves is that people respond to incentives created by public policy interventions that have unintended consequences. MA plans are attractive until people need nursing home care; then they’re more restrictive. So beneficiaries who need nursing homes, especially dual eligibles, switch predictably to traditional Medicare. Central planning by government always creates such predicaments.