According to a Chartis study, The Medicare Advantage (MA) market is experiencing a slowdown after years of rapid growth, with enrollment increasing by 1.3 million beneficiaries (+3.9%) in 2025, a significant deceleration compared to the early 2020s. Despite market headwinds such as rising costs, regulatory pressures, and reduced benefits, MA enrollment reached a record 34.5 million, representing over 50% of Medicare-eligible individuals.

Key trends include the continued dominance of for-profit plans, which captured 56% of the year’s growth, and the rising importance of Special Needs Plans (SNPs), which accounted for over 50% of new enrollees. However, SNP growth slowed to 10%, down from an average of 17% in prior years. The market also saw a slight decline in plan options, with 5,581 plans available, marking the first decrease in years.

Quality remains a concern, with average Star Ratings declining and only 64% of members enrolled in plans rated 4 stars or higher, down from 80% last year. This decline impacts financial performance, as higher ratings are tied to quality bonus payments.

Market disruptions led to plan exits and weakened benefits, with UnitedHealthcare benefiting significantly from displaced enrollees. Notably, nonprofit and Blues plans captured nearly half of the year’s growth, a departure from their historically smaller share.

Looking ahead, the Trump Administration’s expected support for MA could ease regulatory burdens, but plans must address financial sustainability and operational challenges. Strategies for success include optimizing revenue levers, enhancing payer-provider partnerships, and managing member disruption post-enrollment.

Despite near-term turbulence, MA executives remain optimistic, with 91% expecting stable or improved performance in 2026. The market’s resilience and growth potential underscore its importance as a key segment of the health insurance industry.

To read the entire study, click here.