There will be fewer Medicare Advantage plans in 2014, according to a new analysis.

The number of plans will drop to 2,522, which is around a 5% decrease, according to Avalere Health. Medicare Advantage can cover skilled nursing stays, and enrollment was up in 2012.

Factors for the drop in MA plans include continued phase-in of payment cuts under the Affordable Care Act, modifications to the CMS risk-adjustment model, implementation of new medical loss ratio requirements for Medicare Advantage, and application of the new health insurer fee, Avalere noted. Around 80% of counties in Southern and Midwestern states will see a reduction in MA plan options. Click here to see a table of Medicare Advantage plans by type. 

“The multitude of payment changes for MA plans under the ACA are taking root and starting to broadly impact the number and types of plans available in the market,” said Matt Eyles, executive vice president of Avalere Health.

There will be a 13% drop in Special Needs Plans (SNPs) in 2014, the company also noted. Additionally, HMO offerings are expected to grow while Preferred Provider Organization offerings will decline.