Understanding the Effect of Race on Medicare Advantage Enrollment

In this study, we find that the higher MA enrollment rate for Black versus White beneficiaries is largely associated with differences in preferences, while the higher enrollment rate for Hispanic beneficiaries is more associated with differences in attributes. Differences in preferences for MA sector characteristics were significant in explaining higher MA enrollment rates for both groups compared with White beneficiaries, suggesting that changes in payment rates will disproportionately impact racial minorities, particularly for Black beneficiaries. However, the reasons for different preferences for MA among racial groups remain somewhat of a puzzle, particularly given that we control for demographics, health, and market characteristics.