Medicare Advantage Taking Over the Industry
As the older population in the United States grows and grows, the number of people enrolled in fee-for-service (FFS) Medicare is declining because of Medicare Advantage (MA). MA reimburses providers at lower rates than FFS, associated with lower length of stay, and more intensive administrative requirements.
This has caused a massive problem for the skilled nursing industry because “for every 1 percentage point increase in the total proportion of Medicare beneficiaries enrolled in MA, the skilled nursing sector is losing about $275 million annually” (Mullaney, 2023).
Not only is MA causing the industry to lose money, but it is heavily affecting the essential workers. Many concerns are about the behind-the-scenes demands of managed care, the insufficiency of payment rates, and the frequency of audits. This is leading to burnout among workers.
Source: Mullaney, T. (2023). Painful and getting worse: Rise of Medicare Advantage drains vast revenue from SNF sector, worsens workforce instability. https://skillednursingnews.com/2023/08/painful-and-getting-worse-rise-of-medicare-advantage-drains-…