Medicare Advantage Employer-Group Market Shows Steady Growth as MFA Analyzes 2025 Trends
The employer-group Medicare Advantage (MA) market continued to demonstrate stability and gradual growth heading into late 2025, according to newly released insights from Mark Farrah Associates (MFA). Drawing on enrollment data reported by the Centers for Medicare & Medicaid Services (CMS) and consolidated within MFA’s Medicare Business Online™ platform, the analysis highlights key shifts in membership distribution, carrier performance, and state-level enrollment dynamics.
As of November 1, 2025, total Medicare Advantage enrollment surpassed 35.2 million beneficiaries nationwide, reflecting the ongoing expansion of MA plans as a popular alternative to traditional Medicare. Within this broader landscape, employer-group Medicare Advantage plans—also known as Medicare Advantage Employer-Group Waiver Plans (MA-EGWPs)—accounted for 16.2% of the entire MA market. These plans are designed specifically for retirees and are typically offered through employer or union groups. They represent a significant, long-standing segment of the Medicare Advantage industry, valued for their ability to provide comprehensive benefits tailored to retiree populations.
Steady Growth in Employer-Group Enrollment
MFA’s latest assessment found that over 5.7 million Medicare beneficiaries were enrolled in employer-group MA plans as of November 1, 2025. This marks an increase of 19,719 members, or 0.35%, compared to the same period in the previous year. Although modest, this growth reflects the continued commitment among employers and plan sponsors to maintain retiree health benefits through MA-EGWPs, even amid ongoing market pressures, regulatory shifts, and evolving cost-containment priorities.
Growth in the EGWP space is often incremental but steady, typically influenced by changeovers in large group contracts, employer decisions surrounding retiree coverage, union negotiations, and plan competitiveness. A year-over-year expansion, even of less than 1 percent, suggests resilience within this segment despite broader healthcare cost challenges and policy changes affecting Medicare Advantage reimbursement.
Market Dominance of the Top Five Carriers
One of the most notable findings in MFA’s analysis is the continued concentration of enrollment among a small number of major national carriers. As of November 2025, the top five Medicare Advantage insurers accounted for approximately 83% of all employer-group MA membership. This high degree of consolidation underscores the strong foothold that large insurers maintain in the retiree group market, where administrative scale, network depth, and established employer relationships play critical roles.
At the forefront of this group is UnitedHealth, which remained the largest carrier serving employer-group Medicare Advantage members. The company reported over 1.8 million EGWP enrollees nationwide. Despite retaining its leadership position, UnitedHealth experienced a 6.2% decline in enrollment compared to the previous year. Such declines can be influenced by several factors, including shifts in employer contracts, competitive bidding outcomes, changes in benefit designs, and evolving employer preferences regarding retiree health plan administration.
Even with this decline, UnitedHealth’s scale keeps it firmly positioned as a dominant entity in the MA-EGWP space. Meanwhile, other major carriers—though not detailed individually in the provided information—collectively fill the remaining share of the top-five enrollment block, reinforcing the industry trend in which a handful of insurers shape much of the employer-group MA landscape.
State-Level Highlights: California Leads the Nation
On a state-by-state basis, California once again stood out as the nation’s largest market for employer-group Medicare Advantage enrollment. As of November 1, 2025, the state reported nearly 752,000 retirees enrolled in group-based MA plans. California’s sizable population and extensive public-sector retiree base contribute significantly to its leading position.
California’s strong enrollment numbers highlight the influential role regional health plan ecosystems play in shaping state-level Medicare Advantage penetration. With multiple large employer groups, active labor organizations, and competitive carrier offerings, the state continues to be a critical driver of EGWP membership nationwide.
Understanding the Role of Employer-Group MA Plans
Employer-group Medicare Advantage plans are a cornerstone of retiree healthcare coverage for many public- and private-sector organizations. Unlike individual MA plans that beneficiaries enroll in directly, MA-EGWPs are negotiated and sponsored by employers, unions, or other group entities. They often come with specialized benefits, cost-sharing structures, and wellness programs tailored to retiree needs.
These plans provide employers with a mechanism for managing healthcare costs effectively while still offering robust benefits to retired workers. Many EGWPs leverage Medicare Advantage’s care-coordination model, integrating medical management, prescription drug benefits, and disease-specific support programs in ways that can be more cost-effective than legacy retiree health bundles.
Given demographic trends—particularly the ongoing retirement of large segments of the workforce—the EGWP sector remains an important indicator of the direction of retiree health benefits nationwide.
Implications for the Broader Medicare Advantage Market
The latest data from Mark Farrah Associates underscores several important themes shaping the employer-group Medicare Advantage market:
- Stability and Gradual Growth
Despite policy changes and competitive pressures, EGWP enrollment continues to post steady year-over-year gains. This stability reflects the lasting value employers place on providing retirees with predictable, comprehensive health coverage through group-based MA options. - Market Concentration
The dominance of a small number of major carriers illustrates the importance of size and scale in the EGWP market. These insurers possess the infrastructure, contracting expertise, and national reach needed to serve large retiree populations. - State-Level Variation
Significant differences in enrollment by state highlight how local market dynamics and employer populations influence Medicare Advantage uptake. California’s continued leadership exemplifies these trends. - Employer Decision-Making
Employers and unions remain central decision-makers. Their annual plan evaluations, cost-benefit analyses, and negotiations determine the trajectory of EGWP enrollment more than consumer choice does in the individual MA market.
Accessing the Full Analysis
For those interested in a deeper look at these findings, Mark Farrah Associates offers the complete analysis titled Medicare Advantage Employer-Group Market Enrollment Trends.” The full text is available for free on the MFA Briefs section of the Mark Farrah Associates website, providing expanded insights into carrier-level shifts, longitudinal trends, and detailed market segmentation.
About Medicare Business Online
This brief is based on an analysis of employer-group enrollment data for Medicare Advantage released by the Centers for Medicare & Medicaid Services (CMS). Mark Farrah Associates’ Medicare Business Online™ simplifies the tracking of monthly Medicare Advantage and PDP enrollment by competitor. Enrollment data is updated monthly as soon as CMS releases new data.
About Mark Farrah Associates (MFA)
MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include: Health Coverage Portal™, Medicare Business Online™, Medicare Benefits Analyzer™, County Health Coverage™, Health Plans USA™ and 5500 Employer Health Plus. Follow us on LinkedIn! Healthcare Business Strategy is a FREE brief that presents analysis of important issues and developments affecting health insurance business today.
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