Medicare Advantage Plans Are Increasingly Popular, and This Growth Is Spurring Competition That Benefits Both Consumers and Insurers

Medicare Advantage’s growing popularity spurs competition that benefits both consumers and insurance providers. Melanie Musson, an insurance expert with InsuranceProviders.com, says, “Insurance companies should take the competition of the growing Medicare Advantage market as an incentive to improve efficiency and productivity.”

According to America’s Health Insurance Plans (AHIP), more seniors are opting for Medicare Advantage plans over Medicare Parts A and B, otherwise known as Original Medicare, than ever before. Every year, the ratio between these two options steadily shifts toward Medicare Advantage. 

With this increase in consumers choosing Medicare Advantage, insurance competition has risen. Most people understand that competition is good for the consumer. But they may not realize how competition benefits the provider in positive and powerful ways. 

Competition Spurs Efficiency

Competition forced providers to streamline their processes. When a Medicare Advantage insurance provider has to try to attract clients who have a variety of comparable options, the provider can’t waste resources on unnecessary things.

So, the providers must become more efficient in their operations and policy offerings. The things that should be primary must be primary in stiff competition. As a result, Medicare Advantage average premiums have decreased this year despite most of the economy experiencing high inflation. 

The reduction in premiums certainly benefits the consumer, but it also initiates a benefit to the providers as they reduce their operating costs and improve efficiency.

Competition Forces Growth

Another way that competition benefits insurance providers are by pushing new areas for growth. There are rural counties in the U.S. where Medicare-eligible consumers don’t have access to medicare Advantage services. As providers look for new avenues for growth, they’re seizing the opportunity to expand into rural communities.

This expansion benefits consumers by giving them healthcare options, and it helps providers by contributing to business growth.

Competition Is a Win for Consumers and Providers 

While competition is challenging, it’s good for everyone involved. For example, in the car insurance market, consumers know they’ll find the best price when reviewing competing car insurance rate quotes. And Medicare consumers can get better coverage for a better price when there is competition between plan providers.

But the competitors also experience the benefits of competition. For example, competitors in a race do better when they prepare for and face stiff competition. Similarly, competitors in the insurance marketplace are pushed to be their best when competing with other strong contenders.

Article by Melanie Musson

Follow us on social media for the latest updates in B2B!

Image

Latest

thaly palanisamy as new president
Stenograph, LLC Announces Thaly Palanisamy as New President
May 22, 2024

Stenograph, LLC is pleased to announce Thaly Palanisamy as president. In his role, Mr. Palanisamy will guide Stenograph in executing its strategic vision: Empowering the capture, preservation, and accessibility of verbatim records. “Thaly’s leadership skills, combined with the Stenograph strategy deployed by our talented team, will ensure success as we charter our course for the…

Read More
rightnow media
Excellence Culture – Brian Mosley
May 22, 2024

“I like your word excellence better than greatness, because you don’t have to sacrifice everything in order to be excellent” – Brian Mosley Those were the words of Brian Mosley (President of RightNow Media) as we discussed the balance of family and leading an organization that is impacting people all over the world. If you…

Read More
safety culture
Nurturing and Growing a Sustainable Safety Culture
May 22, 2024

Applied Digital champions a proactive approach to workplace safety, empowering employees to take ownership of their health and safety. This video showcases our open-door policy, which allows employees to easily connect with environmental health and safety (EH&S) professionals via phone, email, or a dedicated helpline for support in any situation. We also highlight our…

Read More
executive leadership commitment to safety
Applied Digital’s Executive Leadership Commitment to Safety
May 22, 2024

This video explores the profound impact of Applied Digital’s executive leadership view commitment to safety. It highlights the key initiatives led by senior executives to foster a culture where safety is paramount. A standout strategy is the incorporation of a ‘safety moment’ at the start of every meeting, designed to heighten safety awareness from…

Read More