2024 Preventive Supplemental Benefit Landscape in Medicare Advantage: Insight Into MA’s Most Competitive Market to Date

At a Glance

• Recent trends indicate a strategic shift in MAO’s approach to supplemental benefits, focusing on benefits targeted toward aging in place to address potential adjustments to the changing needs and preferences of the Medicare population.
• We anticipate that Medicare Advantage Organizations will further refine and expand their supplemental benefits, pioneering new approaches to meet emerging health challenges.

Introduction

As the Medicare Advantage (MA) program continues to evolve, so does the robust competition among health plans to attract new members. Enrollment in MA has surged past 30 million (more than half of all Medicare-eligible patients), underscoring the opportunity to compete and win more members. This year’s Annual Enrollment Period (AEP) is from October 15 through December 7, when those 65 and older can select from an array of MA plans or opt for traditional Medicare. It’s a choice that highlights the “arms race” to offer new and more compelling additional services available through MA that are not available through traditional Medicare and are known as “supplemental benefits.” 2024 is poised to be an unprecedentedly competitive year in the Medicare landscape as the growing preference for MA over traditional fee-for-service models spurs organizations to intensify their efforts in capturing a larger share of this expanding market.

While people choose which MA plan to enroll in during AEP, Medicare Advantage Organizations (MAOs) are already busy building out their supplemental benefit packages for 2025. Below, we analyze the new 2024 preventive supplemental benefit market to better understand the landscape for 2025 (and beyond), looking at both already widely adopted benefits and ones that are seeking to become so. We focus on preventive supplemental benefits due to the wide range of uptake of these benefits with the range of plan counts to over 5,000 to under 100.

MAOs utilize supplemental benefits as a strategic lever to not only bolster enrollment but also to enhance member outcomes and satisfaction, ultimately contributing to cost containment and better STAR ratings. Preventive supplemental benefits have gained traction, becoming a mainstay in the array of services offered by MAOs. These benefits are not only clinically beneficial but also offer marketing advantages and help in retaining members through innovative health service offerings.

Growth of Widely Adopted Supplemental Benefits

In 2024, preventive supplemental benefits that have established a consistent presence, particularly those offered in over 1000 plans, exhibited varied growth patterns in 2024. Home and Bathroom Safety Modifications, for instance, have experienced an unprecedented growth of 120% from 2023 to 2024. Memory Fitness benefits, which led the pack last year, continue to grow with an 8% increase in 2024, making it one of the fastest-growing preventive supplemental benefits — now offered by about 1 of 4 plans offering gym benefits. This is consistent with an increased emphasis on “total health” and “mind-body health,” and raises the question of whether this pairing will soon become “table stakes” in the manner of gym benefits today.

These trends reveal a strategic shift in MAO’s approach to supplemental benefits, focusing on benefits targeted toward aging in place to address potential adjustments to the changing needs and preferences of the Medicare population. Both of these benefits also address the growing attention being paid to maintaining the physical and mental health of older generations. Diversification and growth in preventive supplemental benefits underscores the commitment of MAOs to evolving health care needs, ensuring a comprehensive approach to the well-being of the aging population.

Table 1. 2024 Popular (>1000 plans) Preventive Supplemental Benefit Plan Count & Growth

* Memory Fitness, Physical fitness and Activity Tracker benefits are all considered Fitness Benefits as per CMS definition.

** Data is taken from the CMS 2024 PBP Files. Plan Count includes all plan types with the exception of EGWP plans.

Exploration of Up-and-Coming (<1000) Benefits

While popular benefits capture the spotlight, less popular benefits may have more room for growth. Consistent with our trend of aging in place, benefits like Home-Based Palliative Care and In-Home Safety Assessment experienced 25% and 24% growth respectively. Conversely, benefits like Adult Day Health Services, which are primarily offered outside the home, experienced an 83% decline. Wigs for Hair Loss Related Chemotherapy, Medical Nutrition Therapy, and Support for Caregivers experienced positive growth in 2024, which may reveal a trend of enhancing the quality of life for MAO members. These up-and-coming benefits represent a nuanced understanding of the diverse needs of Medicare beneficiaries and should not overshadow their potential to make a significant impact in specialized areas.

Table 2. 2024 Less Popular (<1000 plans) Preventive Supplemental Benefit Plan Count

Conclusion

The 2024 landscape of preventive supplemental benefits in Medicare Advantage is a testament to the dynamic nature of member needs and the responsive innovation of MAOs. Home and Bathroom Safety Modification and Memory Fitness benefits, along with other significant benefits, demonstrate MAOs' commitment to addressing the complex health needs of their members. As we look towards the future, the continuous evolution of these benefits will likely shape the next generation of Medicare Advantage offerings, ensuring comprehensive care and enhanced quality of life for beneficiaries. Moving forward, we anticipate that Medicare Advantage Organizations will further refine and expand their supplemental benefits, pioneering new approaches to meet emerging health challenges. This progression promises not only to redefine the standards of elderly care but also to set a benchmark for holistic, patient-centered health care solutions in the years to come.