Health Affairs March 15, 2024
The Medicare Payment Advisory Commission (MedPAC) is a non-partisan, independent agency that provides Congress with policy and technical advice to improve the Medicare program. The Commission has long supported including Medicare Advantage (MA) plans in Medicare. As MA enrollment has grown to over half of eligible beneficiaries, discussion about payment to MA plans has become increasingly important. In its March 2024 report, released today, the Commission estimates that Medicare spends 22 percent more for MA enrollees than it would spend if those beneficiaries were enrolled in Traditional Medicare (TM), a difference that translates into a projected $83 billion in additional Medicare spending in 2024.
This estimate, in and of itself, does not imply any specific policy action. Rather, the Commission...
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