2023 Preventive Supplemental Benefit Landscape in Medicare Advantage: Insight Into A Competitive Market

Each year, the health plans that participate in the Medicare Advantage (MA) program compete vigorously for new members. Enrollment in the program has grown to over 28 million Americans, making 2023 a more competitive year than ever. From mid-October through December 2022, adults age 65 and older can choose between available MA plans or traditional Medicare. Medicare beneficiaries actively compare coverage options, creating a booming market and a competitive market that pushes health plans to offer new and innovative supplemental benefits to differentiate.

Supplemental benefits are a tool that Medicare Advantage Organizations (MAOs) use to drive enrollment, improve outcomes and member experience, and ultimately reduce costs. Preventive supplemental benefits create some of the best opportunities to improve clinical outcomes while also improving marketing “sizzle” and improving member retention with innovative health services. As a result, they are becoming increasingly prevalent within MAOs benefit offerings, growing substantially from 2021 to 2022, and now from 2022 to 2023 (see table below).

For 2023, fitness benefits — long a mainstay since supplemental benefits became available — continue to be the most popular preventive supplemental benefit. But spurred by regulatory changes and the COVID-19 pandemic, other benefits have begun to catch up.

One area to watch is memory fitness benefits, which have grown rapidly in popularity. The number of plans offering memory fitness benefit grew from 949 in 2022 to 1,308 in 2023 (a nearly 40% increase). This is likely due to memory fitness benefits' ability to improve outcomes, member experience and appeal to Medicare beneficiaries weighing their options during open enrollment.

Other quickly growing benefits include in-home support services and support for caregivers of enrollees. Offerings for these benefits grew by 50% and 83%, respectively, as the COVID-19 pandemic drove a major increase in in-home services and drew attention to the need for more support for members and their caregivers.

As open enrollment heats up, MAOs that offer innovative, appealing supplemental benefits will have the competitive edge. As MAOs consider their benefit design strategy for their plan year 2024 bids, they should consider expanding their benefit offerings to reflect the needs and wants of their target populations.

Preventative Supplemental Benefit Trends and Growth 2021- 2023

Data was pulled from the CMS PBP Benefits – 2023 – Quarter 1 data file.

*Physical Fitness, Activity Tracker, and Memory Fitness benefits are all categorized under Fitness Benefits.