Analysis shows $0 PPO plans gain market share

One innovation that is driving enrollment growth for some Medicare Advantage organizations (MAOs) are preferred provider organization (PPO) plans with a $0 member premium. PPO plans have steadily increased their Medicare Advantage-Part D (MAPD) market share in large part because of these $0 premium plans.

According to one Milliman analysis, the percentage growth of $0 PPO plans is outpacing the growth of total plans in the market by three to five times in each of the past four years. This growth should encourage MAOs to consider the impact these plans are having on their markets because MAPD beneficiaries are drawn to them.

To learn more, read this paper by Milliman’s Matthew Timm and Michelle Klein.