The Growing Divide: Seniors Embrace Medicare Advantage, While Hospitals and Doctors Remain Skeptical

Health care providers, including hospitals and doctors, are increasingly refusing to accept Medicare Advantage plans, despite the growing popularity of these plans among Medicare beneficiaries. The friction between insurers and providers arises from payment rates imposed by Medicare Advantage plans and the perceived burdensome requirements for preapproval and claims denials. Patients may be forced to switch plans or revert to traditional Medicare, which can be challenging. The conflicts between insurers and providers may be the beginning of a trend as the Medicare market becomes more concentrated among a few insurers. Studies show that Medicare Advantage costs taxpayers more per beneficiary than the traditional program, but the plans enjoy political support due to their popularity.