Medicare Advantage National Penetration Rates

Data Journalist

Updated on June 28th, 2021

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Some 25 million U.S. residents are signed up for Medicare Advantage plans across the nation. This means that about 36% of all 68 million people eligible for Medicare are enrolled in Medicare Advantage plans – a number called the “Penetration Rate.” As of June 2020, the county with the top penetration rate in the 50 U.S. states was Florida’s Miami-Dade, with 67 percent of all Medicare-eligible citizens enrolled in Medicare Advantage plans.

Medicare Advantage Penetration Rates by County
Time Slider
2008-Jun

What Is Medicare Advantage?

Medicare Advantage offers the same access to doctors and hospitals as Original Medicare with other benefits. These options include prescription drugs, vision and dental coverage. Private companies run Medicare Advantage plans with deductibles, copayments, and coinsurance. Members generally get their benefits through an HMO or PPO. Beneficiaries find lower premiums and a cap on out-of-pocket costs. But they get fewer choices of doctors and are limited to a geographic area for their plans.

Medicare Advantage Posts Steady Growth

Enrollment in Medicare Advantage nationwide rose from 10 million in 2008 to 25 million in 2020, making up an increasing share of all Medicare beneficiaries. Despite the rapid growth, the total number of Medicare beneficiaries has risen even faster – from roughly 45 million to some 68 million people – meaning Medicare Advantage has plenty of room to grow.

Medicare Advantage Enrollment over Time

Medicare Advantage Fast Facts

25 million enrolled in Medicare Advantage

36% penetration rate

9% annual growth from 2019 to 2020

Top 10 States

Among the 50 U.S. states (excluding Puerto Rico which at 69% has by far the highest figure of any U.S. territory), the state with the greatest Medicare Advantage penetration is Hawaii. At 44%, the Aloha state just edged out Florida at 43% and Oregon at 42%.

StateEnrolledPenetration
Hawaii132,48544.35%
Florida2,262,82843.2%
Oregon415,14742.01%
Michigan958,69341.88%
Alabama481,70941.53%
Connecticut307,73041.06%
Pennsylvania1,223,01440.92%
New York1,586,12239.65%
Ohio1,014,61939.54%
California2,782,51839.29%
Source: U.S. Centers for Medicare & Medicaid Services

Top 10 Counties

Counties with the top Medicare Advantage penetration rates in the 50 U.S. states range from Florida’s Miami-Dade at number one to counties in states as different as New York and Texas. Counties’ widely differing penetration rates can be accounted for by private insurers’ decisions whether or not to sell plans in a given county. For example, if a specific county in Mississippi has extremely high healthcare usage rates, an insurance company might not want to offer Medicare Advantage to those residents because of potential claim costs. As of June 2020, four of the counties with the highest penetration rates were in the state of Pennsylvania.

StateCountyPenetration
FloridaMiami-Dade66.83%
New YorkMonroe66.35%
PennsylvaniaCambria63.25%
MinnesotaMeeker62.03%
MichiganOttawa61.82%
MinnesotaMcLeod61.56%
PennsylvaniaBeaver61.39%
TexasEl Paso61.17%
PennsylvaniaWestmoreland61.14%
PennsylvaniaArmstrong60.79%
Source: U.S. Centers for Medicare & Medicaid Services

A Bright Future

The adoption of privatized Medicare took off after the 2003 enactment of the Medicare Prescription Drug, Improvement, and Modernization Act. The annual rate of growth of Medicare Advantage enrollment reached nine percent between 2019 and 2020. The Congressional Budget Office (CBO) projects that Medicare Advantage enrollees will comprise as much as 51% of all Medicare beneficiaries by 2030.

Medicare Advantage Penetration Rate State Pages

Medicare Advantage Penetration Rates in Alabama
Medicare Advantage Penetration Rates in Alaska
Medicare Advantage Penetration Rates in Arizona
Medicare Advantage Penetration Rates in Arkansas
Medicare Advantage Penetration Rates in California
Medicare Advantage Penetration Rates in Colorado
Medicare Advantage Penetration Rates in Connecticut
Medicare Advantage Penetration Rates in Delaware
Medicare Advantage Penetration Rates in Florida
Medicare Advantage Penetration Rates in Georgia
Medicare Advantage Penetration Rates in Hawaii
Medicare Advantage Penetration Rates in Idaho
Medicare Advantage Penetration Rates in Illinois
Medicare Advantage Penetration Rates in Indiana
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Medicare Advantage Penetration Rates in Maine
Medicare Advantage Penetration Rates in Maryland
Medicare Advantage Penetration Rates in Massachusetts
Medicare Advantage Penetration Rates in Michigan
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Medicare Advantage Penetration Rates in Mississippi
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Medicare Advantage Penetration Rates in New Mexico
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Medicare Advantage Penetration Rates in South Carolina
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