Rural Hospitals Seek Help as Private Medicare Patients Increase

Rapid enrollment growth in Medicare managed care plans is creating another layer of economic uncertainty for beleaguered rural hospitals.

The number of rural beneficiaries enrolled in private Medicare Advantage plans jumped nearly 48%, from 6.3 million to 9.2 million, between 2019 and 2023, according to health consulting firm Chartis. By 2023, 44% of rural beneficiaries were enrolled in MA plans, according to the Medicare Payment Advisory Commission.

But rural hospitals say MA plans often pay less than traditional Medicare, don’t cover as many services, and are more likely to deny or delay coverage through prior authorization. And more than ...