Characteristics of Medicare Advantage (MA) Plans and Quality-of-Life and Health Outcomes of Medicare Beneficiaries: Evidence from Medicare Health Outcomes Survey

Enrollment in Medicare Advantage (MA) plans surpassed fee-for-service (FFS) Medicare beneficiaries in 2024. Still, little is known about how effectively these private plans impact Medicare beneficiaries' health and quality of life outcomes. The current study aimed to examine the associations of MA plans' characteristics with beneficiaries' health-related quality of life (EQ-5D) physical and mental health summary scores (PCS, MCS) using the Medicare Health Outcomes Survey (2015-2017). The study used two cross-sectional samples (2016 and 2018) and one repeated sample with baseline (2015) and follow-up (2017) data. I used propensity score matching analysis (PSM) and the instrumental variable approach to address the selection of MA plans. Findings suggest that PPO (Preferred Provider Organization) enrollment was significantly associated with higher EQ-5D, PCS, and MCS scores than HMO (Health Maintenance Organization) plans. Results from linear models with individual and time-fixed effects suggest that beneficiaries enrolled in PPO plans experienced an improvement in all three outcomes from baseline to follow-up compared to HMO plans. Other significant plan-level characteristics were plan enrollment, ownership status, and duration. Assessing health and quality-of-life outcomes is important for a better understanding how MA plans directly impact population health, the core of the value-based care model.