Thirty-three hospital systems are dropping their Medicare Advantage (MA) contracts, reports Becker’s Hospital Review.
The publication has been monitoring participation rates for several years. In 2024, citing contracts ending in 2025, Becker’s lists 33 hospitals as becoming “out of network” for Medicare Advantage contracts.
In 2023, 13 hospitals ended their contracts. In 2024, the publication identified 32 hospitals that ended MA participation.
The latest list includes the Rochester, Minnesota-based Mayo Clinic, Vanderbilt Health in Nashville, TN, and Mass General Brigham in Somerville, MA.
“Among the most commonly cited reasons are excessive prior authorization denial rates and slow payments from insurers,” wrote Jakob Emerson and Elizabeth Casolo for Beckers. The publication says its list is not exhaustive, and researchers will continue to update it.
Saving Money
MA enrollees pay about $200 less per month in out-of-pocket costs than fee-for-service Medicare, the Better Medicare Alliance stated in a letter to the Centers of Medicare and Medicaid Services (CMS) in February 2025.
MA plans must scrupulously monitor hospital charges, says Health Care News co-publisher John C. Goodman.
“Because MA plans are managed by private companies, they have more incentive than the government to be more efficient in spending, something that hospitals may not like,” said Goodman. “Ultimately, this saves taxpayers money.”
Congress should allow Medicare enrollees a more affordable option, says Citizens’ Council for Health Freedom President Twila Brase, R.N., PHN.
“Allow enrollees to buy real, affordable, medical indemnity insurance, and allow seniors to drop out of Medicare if they wish to do so, without penalty,” said Brase.
—Staff reports
