According to a recent report by Chartis, the Medicare Advantage (MA) market is experiencing a period of correction after years of rapid growth.
In 2025, enrollment grew by 1.3 million beneficiaries (+3.9%), bringing total enrollment to 34.5 million. While this growth is slower than the 7-10% annual increases seen earlier in the decade, it highlights the resilience of the MA market despite significant headwinds.
Key Trends Shaping the Market
- Enrollment Shifts: For-profit plans captured 56% of the market’s growth, adding 748,000 members. Special Needs Plans (SNPs) saw a 10% growth, with Chronic Condition SNPs (C-SNPs) leading the segment. However, overall SNP growth has decelerated compared to prior years.
- Plan Options and Preferences: For the first time, the number of available MA plans decreased, with 5,581 plans offered in 2025. PPOs now make up 44% of all plans, reflecting a shift in consumer preferences.
- Market Disruption: Regulatory pressures and financial challenges led some plans to exit the market or reduce benefits. UnitedHealthcare emerged as a key beneficiary, capturing significant enrollment in areas impacted by plan exits.
- Quality Concerns: Average Star Ratings declined, with only 64% of members enrolled in plans rated 4 stars or higher, down from 80% last year. This decline impacts financial performance and competitiveness.
- Optimism Amid Challenges: Despite market turbulence, 59% of health plan executives expressed a positive outlook for growth, up from 47% last year. Leaders anticipate stabilization and improved performance in 2026.
Preparing for Future Growth
To thrive, MA plans must focus on financial sustainability and operational efficiency. Key strategies include optimizing revenue and cost levers, strengthening payer-provider partnerships, and addressing member disruption. With favorable policy shifts expected under the Trump Administration, the MA market remains a promising growth opportunity for health plans that adapt to evolving dynamics.
Medicare Advantage continues to be a vital segment of the health insurance market, offering long-term growth potential for plans that prioritize sustainability and innovation.
To read this entire report by Chartis, click here.
