Seniors switching to MA already have lower costs than traditional Medicare beneficiaries

Dive Brief:

• Seniors who switch from traditional Medicare into privately-run Medicare Advantage plans already have lower healthcare costs before they join MA, according to a new Kaiser Family Foundation study, which raises doubts about the extent to which MA plans actually lower prices and save the system money.
• People who switched into MA in 2016 spent, on average, $1,253 less in healthcare costs in 2015 than those who remained in Medicare fee-for-service, according to KFF, after adjusting for health risk factors. That’s about a 13% difference.
• Even those with chronic and high-cost health conditions had less spending. Seniors with diabetes, asthma and breast or prostate cancer who switched to MA accounted for $1,072, $1,410 and $1,517 less in...

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