Tennessee is a largely rural state, where more than half of the individuals eligible for Medicare live outside the four largest population centers and 44% live in the mountains of East Tennessee. The state’s 23.1% Medicare Advantage (MA) penetration is higher than both the average rate of 20.8% and the median rate of 18.3% for the rest of the United States. MA penetration is higher in East Tennessee than the Middle or West regions of the state, which are home to its two big metropolitan areas, Nashville and Memphis. In East Tennessee, a 25-year history of provider-sponsored managed care is partly responsible for the above-average penetration rate.

This article was published in September 2009 by Mark Farrah Associates in Medicare Business Online. Copies are available on request.