Medicare Advantage beneficiaries had twenty-three (23%) percent fewer inpatient stays than those enrolled in Traditional Fee-for-Service (FFS) Medicare, found a report released this week by Avalere Health. Though Medicare Advantage has a higher percentage of beneficiaries with chronic conditions enrolled due to disability than FFS, Medicare Advantage members experience better health outcomes at similar or lower costs then FFS.

The study, funded by Better Medicare Alliance (BMA), also found that Medicare Advantage had a lower rate of avoidable hospitalizations, higher rates of preventative screenings and fewer emergency room visits than FFS beneficiaries.

“This study adds to the growing body of evidence showing the ability of Medicare Advantage to align incentives to better manage the care for a high-need population with multiple chronic conditions,” said Allyson Y. Schwartz, BMA President and CEO.

Adds Avalere founder, Dan Mendelson, “Our findings present new evidence for Medicare Advantage’s value proposition, especially for high-need beneficiaries.”

Seventy (70) percent of Medicare Advantage plan members say they have one or more chronic diseases, according to a HealthMine study released last month. As this number continues to rapidly grow, it will become increasingly important to serve members effectively.

About The Number:

The Number is a timely column from HealthMine highlighting a key statistic that is pertinent to the US health care industry.