Medicare Advantage penetration doesn’t translate to lower hospital margins: MedPAC

Dive Brief:

Higher Medicare Advantage enrollment isn’t associated with a change in hospital margins, according to new research from congressional advisory group MedPAC.

The report released Friday found a small association between higher MA penetration in a hospital’s geographic area and lower revenue and costs, but no relationship between MA penetration and a facility’s profit.

The findings throw cold water on hospital allegations that the privatized Medicare plans are contributing to shrinking margins, especially for cash-strapped rural facilities.

Dive Insight:

The share of Medicare beneficiaries enrolled in MA has increased significantly over the past decade. Currently, roughly 35 million Americans, or more than half of the entire Medicare population, are covered by the priva