Correcting the Record: Medicare Advantage Costs Far Less than Fee-for-Service Medicare

AHIP February 24, 2021
Lynn Nonnemaker, VP of Medicare Policy, AHIP & Mark Hamelburg, SVP of Federal Programs, AHIP

The past decade has seen huge growth in the number of Medicare-eligible Americans who have chosen to receive their Medicare benefits through the Medicare Advantage (MA) program. In fact, the program has grown from about 12 million enrollees in 2011 to more than 26 million in 2021. Under MA, the government makes capitated payments to private health plans, which curate a network of providers to deliver Medicare benefits and services to enrollees, while providing protection against high out-of-pocket costs and supplemental benefits like vision and dental services and benefits designed to reduce socioeconomic barriers like healthy food and non-medical transportation.

It is no surprise then that the growing number of beneficiaries who choose MA report overwhelming satisfaction (94%) with their...

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