ATLANTA—More than 55% of Medicare beneficiaries are enrolled in Medicare Advantage, and enrollment in preferred provider organization plans rose nearly 20% between 2023 and 2024, according to a new report out from Trella Health.
Trella Health, a provider of market intelligence and customer relationship management solutions for post-acute care, HME and infusion organizations, released its 2025 Post-Acute Care Industry Trend Report, offering a detailed analysis of national and state-level patient trends, utilization patterns and market dynamics across home health, hospice and skilled nursing.
The report, rooted in Trella Health's access to the most current Medicare Part A and B claims data and Medicare Advantage (MA) enrollment and admissions patterns, provides essential insights for post-acute care organizations navigating today's complex post-acute care landscape.
"At Trella Health, we believe better data leads to better health care," said Scott Tapp, CEO at Trella Health. "This year's report reinforces our commitment to delivering clarity through trusted, comprehensive insights—empowering better decision-making and stronger outcomes across the care continuum."
Key Insights from the 2025 Post-Acute Care Industry Trend Report:
- Medicare Advantage (MA) continues to reshape the Medicare landscape: As of February 2025, 55.4% of Medicare beneficiaries are enrolled in Medicare Advantage, with 30 states now above 50% penetration.
- Preferred provider organization plans (PPO) enrollment growth signals potential headwinds for home health: Between 2023 and 2024, enrollment in PPO plans—which typically utilize home health services at lower rates than health maintenance organization (HMO) plans—rose 19.8%, while HMO enrollment grew by just 4.3%.
- Adherence drives value-based outcomes: In the third quarter of 2024, patients who adhered to home health discharge instructions had a 30-day readmission rate of 12.7%, compared to 15.1% for those who did not—a 2.4-point gap that underscores the impact of timely, appropriate care transitions.
- Home health's share of FFS inpatient discharges rose for the first time since 2020: In the fourth quarter of 2024, 22.6% of inpatient discharges included a home health referral—up from 22.1% the year prior and the first rise since 2020.
- Hospice admissions see strongest growth since the pandemic: Total admissions rose 3.7% between 2023 (1.55M) and 2024 (1.61M), with more than 50% of Medicare mortalities now occurring on hospice.
- State-by-state variation in utilization remains stark: Home health fee-for-service utilization ranges by 25.1 percentage points across states, while skilled nursing varies by 22.6 points—highlighting persistent disparities in discharge practices and access to post-acute care.
The report also examines emerging policy developments—including the proposed TEAM model—and explores how providers are responding to ongoing challenges in staffing, reimbursement and the shift toward value-based care.
The full report is now available here.