Center on Budget and Policy Priorities January 10, 2025
Increasingly, Medicare enrollees receive their benefits through a Medicare Advantage (MA) health plan offered by a private insurer rather than from traditional Medicare, which is a government-run, single-payer program. The Congressional Budget Office (CBO) projects that the Medicare Advantage share will grow from 54 percent of eligible Medicare beneficiaries in 2024 to about 64 percent in ten years if it continues on its current course. (See Figure 1.) The growth of Medicare Advantage heightens several long-standing concerns.
MA plans are substantially overpaid compared to traditional Medicare. Congress’s Medicare Payment Advisory Commission (MedPAC) estimates that MA payments in 2024 were 22...
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