As part of Alight's analysis of the Medicare Individual Healthcare Market (IM), we have recently updated a whitepaper to reflect the latest news and trends.
White paper 2 - "How Medicare’s individual market empowers smarter choices" - explores cost and enrollment trends of IM Medicare Advantage, Medigap and standalone prescription drug plans. Over the past year Medicare Advantage has outperformed expectations. Despite anticipated cost increases due to legislative changes, we observed virtually no change in costs to retirees, while the number of available choices has grown. In contrast, group health plans have become more expensive, widening the cost differential compared to the IM.
Although Medigap plans have gradually lost market share to Medicare Advantage, they remain crucial for retirees, particularly for those with chronic conditions (footnote WP1). Medigap plans continue to be affordable, with cost increases aligning with standard inflation rates, approximately 3% annually.
Looking ahead to 2025, we predict that due to cost savings, retiree benefits and bipartisan government support, the IM will see increasing enrollment while group health plan numbers will diminish.
Employers with a Medicare group plan are encouraged to contact Alight for a complimentary, personalized analysis.
