The Growth of Private Plans in Medicare 2006

This brief details private plan options available to people on Medicare, including Medicare Advantage plans (such as Medicare HMOs, PPOs, and private fee-for-service plans) and new stand-alone prescription drug plans (PDPs). In 2006, all beneficiaries have access to at least one type of private plan, up from 77 percent in 2004. The introduction of regional PPOs in 2006 and the growth in private fee-for-service plans have expanded access to private plans in rural areas, but HMOs continue to be more common in urban areas. Special needs plans serving beneficiaries eligible for Medicare and Medicaid, institutionalized beneficiaries, and those with severe chronic and/or disabling conditions are available in all but nine states.