Medicare-eligible Americans are opting for Medicare Advantage (MA) plans in ever-growing numbers. In fact, enrollment in MA surpassed enrollment in Original Medicare for the first time ever in 2023.
MA enrollment: past, present and future
What’s been driving this enrollment surge? Here’s a look at three key factors.
Driver #1: A growing senior population
13%
Growth in the 65+ demographic from 2020 to 2024, far outpacing the 1.4% growth in the working-age population (ages 18 to 64)3
42%
Projected increase in number of Americans ages 65+ by 20504
19million
Projected number of Americans ages 85+ in 2060, nearly triple the number in 20205
Driver #2: More options leads to greater popularity
The U.S. senior population is rapidly expanding:
80%
Growth in number of plan options over the past 5 years6
75%
Percentage of MA enrollees who use at least one supplemental benefit per year7
90%+
Percentage of MA enrollees with supplemental coverage for vision, hearing and dental in 20248
Driver #3: Lower costs, less burden for plan sponsors
Medicare Advantage plans can help reduce costs and simplify administration for plan sponsors, boosting MA’s appeal:
56%
Share of large employers offering retiree health benefits in 2024 that offered coverage to some retirees through MA, more than double the share in 20179
56%
Percentage of large employers offering retiree benefits through an MA plan who believe the shift to MA has lowered the cost per retiree9
5.7million
Number of Group Medicare enrollees in 2025, up from 1.8 million in 20101
What’s on the horizon?
MA enrollment growth is expected to continue. Here’s why:
Demographics:
There are more Medicareeligible Americans every year, and more are opting for MA over Original Medicare
Financial incentives:
Annual out-of-pocket limit offers protection; rising premiums for Part D standalone plans may incentivize switching to MA plans2
Regulatory environment:
The Inflation Reduction Act (IRA), which impacts drug pricing, may make MA plans more appealing10
Sources:
- Nancy Ochieng et al.,“Medicare Advantage in 2025: Enrollment Update and Key Trends,” KFF, July 28, 2025, accessed Sept. 12, 2025.
- Tricia Neuman, Meredith Freed, and Jeannie Fulgesten Biniek, “10 Reasons Why Medicare Advantage Enrollment is Growing and Why It Matters,” KFF, Jan. 30, 2024, accessed Sept. 12, 2025.
- “Older Adults Outnumber Children in 11 States and Nearly Half of U.S. Counties,” United States Census Bureau, June 26, 2025, accessed Sept. 15, 2025.
- Mark Mather and Paola Scommegna,“Fact sheet: Aging in the United States,” Population Reference Bureau, Jan. 9, 2024, accessed Sept. 12, 2025.
- Mark Mather and Lillian Kilduff,“The U.S. Population is Growing Older, and the Gender Gap in Life Expectancy is Narrowing,” Population Reference Bureau, Feb. 19, 2020, accessed Sept. 12, 2025.
- Nick Herro et al., “Mounting Headwinds in Medicare Advantage Market Haven’t Stopped Growth,” Chartis, March 5, 2024, accessed Sept. 15, 2025.
- Noah Tong, “Medicare Advantage Report Shows Enrollees Capitalize on Supplemental Benefits,” Fierce Healthcare, July 26, 2023, accessed Sept. 19, 2025.
- Julia Friedman and Mary Yeh, “State of the 2024 Medicare Advantage Industry: General Enrollment Plan Valuation and Benefit Offerings,” Milliman, Jan. 16, 2024, accessed Sept. 19, 2025.
- Meredith Freed et al., “Medicare Advantage has Become More Popular Among the Shrinking Share of Employers that Offer Retiree Health Benefits,” KFF, Nov. 18, 2024, accessed Sept. 19, 2025.
- “CMS Office of the Actuary Releases 2022-2031 National Health Expenditure,” Projections, Centers for Medicare & Medicaid Services, June 14, 2023, accessed Sept. 15, 2025.
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