What are the advantages of creating segmented Medicare Advantage plans?

Medicare Advantage organizations (MAOs) can offer a variety of Plan Benefit Packages (PBPs) under the Medicare Advantage (MA) program. MAOs have been adding PBPs with segments to their plan portfolios in recent years. There are numerous advantages to segmenting a plan within an MAO’s portfolio of PBPs, relative to the alternative of offering separate PBPs to achieve strategic objectives.

In this paper, Milliman consultant Julia Friedman reviews the advantages of adding a segmented plan to an MAO portfolio and the bid requirements for segmented plans.

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