U.S. Tiny, Rural Hospitals Feel the Pinch as Medicare Advantage Plans Grow

Tiny, Rural Hospitals Feel the Pinch as Medicare Advantage Plans Grow - KFF Health News More than half of seniors are enrolled in private Medicare Advantage plans instead of traditional Medicare. Rural enrollment has increased fourfold and many small-town hospitals say that threatens their viability. khnkytjaw KFF Health News

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Medicare Advantage growth has had an outsize impact on the finances of small, rural hospitals that Medicare has designated as “critical access.” Under the designation, government-administered Medicare pays extra to those hospitals to compensate for low patient volumes. Medicare Advantage plans, on the other hand, offer negotiated rates that hospital operators say often don’t match those of traditional Medicare.

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