Medicare Services Case Study

I. Penetration The data for this study were drawn from the Centers for Medicare and Medicaid Services (CMS). It provided the Medicare Advantage (MA) plan penetration rates at the state/county level. In this study we compare the following counties: Broward, Hillsborough, Miami-Dade, Palm Beach, and Orange (Home County). Exhibit 1 shows the market penetration for the months of December throughout 2012-2015. Each line represents a different county. As you can see in Palm Beach County the penetration moved from around 34% in 2012 up to around 37% over the three year period. It shows that 34% of all people who are eligible of joining Medicare Advantage Plans did and has grown up to 37% over the periods presented. Our home county, Orange, has a higher penetration compared to Palm Beach County. Orange county when up from around 37% to 45% during the same period. Hillsborough grew from about 42% to 47%. Broward had about half of the eligibles joining in 2012 and has grown up to 54%. Exhibit 1 also shows that Miami-Dade has the highest market penetration overall other counties. It had around 56% of all eligible people joining MA plans in 2012 and had …show more content…
It indicates the amount of competition among the markets. As seen in Exhibit 4, Miami-Dade has the lowest concentration of all counties. Miami-Dade County top five Advantage Plans had 67% of all enrollments; Orange County had 81%; Broward had 76% and Hillsborough had 66%. The higher up and steeper the curve, the more concentrated the market. Therefore, Palm Beach is the highest concentrated market. The top five MA plans in Palm Beach have 79% of enrollments. An increase in concentration generally indicates a decrease in competition and an increase of market power. A lower concentration indicates a competitive industry with no dominant competitors. Given these points, the best choice for our company is to move into Miami-Dade