Health Affairs November 12, 2025
The Medicare Payment Advisory Commission (MedPAC) has estimated that in 2025 Medicare will spend 20 percent more for beneficiaries enrolled in Medicare Advantage (MA) than it would have if these beneficiaries had enrolled in traditional Medicare, resulting in more than $80 billion in additional spending. In the latest survey of leading health care policy scholars conducted by the Cornell Health Policy Center, three-quarters of respondents (76 percent) indicated that bringing per-enrollee MA spending to levels comparable with traditional Medicare would substantially reduce the supplemental benefits offered by MA plans. Respondents were split on whether lowering MA spending would also reduce the number of MA plans available to beneficiaries or increase the cost to beneficiaries through higher premiums or cost sharing.
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