More large businesses are using Medicare Advantage Plans

According to KFF's Health News Organization 2023 Employer Health Benefits Survey, the proportion of businesses providing retiree health benefits under Medicare Advantage has increased by 26 percentage points since 2017.

Compared to 28 percent in 2013 and 66 percent in 1988, just 21 percent of businesses with more than 200 employees in 2023 gave health benefits to retired employees.

More businesses are providing retirement benefits through Medicare Advantage among those that do. The percentage of employers who offered retirement benefits through MA increased to 52% in 2023 from 50% in 2022. The percentage rises to 62 percent for businesses with 5,000 or more employees.

15% of businesses that do not presently use MA for retirement benefits indicated they are likely to do so within the next two years. In companies with 5,000 or more employees, this percentage was higher at 29%.

KFF conducted interviews with benefit and human resource managers at 2,133 businesses for its survey on employer health benefits. The study was released on October 18.