An update to this article is available here.

Over the last few years, Medicare Advantage organizations (MAOs) have been adding plans with segments to their plan portfolios in order to take advantage of a number of benefits of plan segmentation. These plans are known as plan benefit packages (PBPs). There are numerous advantages to segmenting a plan within an MAO’s portfolio of PBPs, relative to the alternative of offering separate PBPs to achieve strategic objectives.