March 27, 2025By Audrie Martin | March 25, 2025 The Medicare Advantage (MA) market grew to 34.5 million in 2024 despite significant challenges, according to a new report from HealthScape Advisors and Chartis. This signifies that 51% of the U.S. Medicare population is enrolled in an MA plan, reflecting a growth of nearly 1.3 million total beneficiaries since 2024. The report indicates that while the MA growth in 2024 remains robust, it decreased by 7% from 2023. Before the annual enrollment period, many for-profit health plans signaled their intent to slow growth or even reduce membership in response to a “perfect storm” of pressures – including rising usage, lower-than-expected rate increases and increased regulatory scrutiny around key financial levers. Noteworthy trends emerged this year, according to the report. First, 2024 was reportedly the highest for overall Medicare program growth, with 1.5 million new beneficiaries added. Second, traditional Medicare enrollment has not waned for the first time in recent history. Researchers have reported a decline in traditional Medicare enrollment in favor of MA for years. This year, traditional Medicare grew by about 200,000 beneficiaries. Finally, MA enrollment was not as robust as in the past. Year-over-year changes showed considerable MA growth at traditional Medicare’s expense, stemming from the over-65 population growth. In 2024, MA growth slowed significantly. “Even with slowed growth, Medicare Advantage enrollment continues to show signs of strength, and it should for the foreseeable future,” Nick Herro, a Chartis senior partner in strategic transformation and report co-author, said in a statement. “Special needs plan popularity, anticipated regulatory support by the new administration, and consistent growth in the aging population present future growth opportunities and instill confidence in this market segment.” Researchers report that special needs plan (SNP) enrollment increased 10% from 2024 to 2025, in contrast to an average rate of 17% per year over the past five years. Notably, SNPs captured just above 50% of new enrollees this year. More than one in five MA enrollees have coverage through an SNP. This reinforces the segment’s importance to the MA sector and the imperative for health plans to serve this high-growth population, according to the report. “Health plans are optimistic about the future of Medicare Advantage,” Alexis Levy, senior partner at HealthScape Advisors and report co-author, said. “To maintain this momentum, health plans must address financial performance and sustainability challenges to position themselves for this long-term growth potential.” In a recently conducted survey by Chartis to gather perspectives on the MA market, health plan leaders highlighted ongoing growth and favorable economic conditions compared to other market segments. Furthermore, the Trump Administration has supported the program, and a reduced administrative burden is anticipated. Leaders see a positive future for the MA industry over the next five years despite tempered expectations at the company level in the short term. About 91% expect the same or better performance in 2026, indicating confidence in the market’s stability and growth potential.