A new study from health research and consulting firm Avalere Health finds that individuals with certain chronic conditions enrolled in Medicare Advantage (MA) – the managed-care option in Medicare – experience better health outcomes and similar or lower costs compared to those enrolled in traditional fee-for-service (FFS) Medicare.
The report, entitled Medicare Advantage Achieves Better Health Outcomes and Lower Costs for Beneficiaries with Chronic Conditions Compared to Fee-for-Service Medicare, finds that MA outperforms FFS Medicare on the following: higher rates of preventive screenings, fewer avoidable hospitalizations, and fewer emergency room visits.
Avalere compared demographic, clinical, utilization, quality and cost metrics of MA and FFS Medicare beneficiaries with one or more of three chronic conditions: hypertension, hyperlipidemia, and diabetes. MA beneficiaries had 23% fewer inpatient stays and 33 percent fewer emergency room visits than FFS Medicare beneficiaries. Dual eligible MA beneficiaries with chronic conditions in particular experience significantly better patient outcomes and lower costs savings, according to the study.