UnitedHealth study: Medicare Advantage members spend 40% less per year than fee-for-service beneficiaries

Fierce Healthcare April 12, 2021
Paige Minemyer

Medicare Advantage beneficiaries spend 40% less per year than people enrolled in fee-for-service Medicare, according to new data from UnitedHealth Group.

The average annual spending, including premiums and out-of-pocket costs, for people enrolled in traditional Medicare with a prescription drug plan was $5,361, the study found. For those who add Medigap coverage, that annual spending increases to $5,992 on average per year.

For those on Medicare Advantage, however, annual spending was $3,558 per person, the study found.

“A beneficiary’s estimated health care spending is a key factor in the choice between MA and FFS coverage, especially since half of Medicare beneficiaries live on fixed annual incomes below $29,650,” UnitedHealth’s researchers wrote in the report.

The study also breaks down what...

Today's Sponsors

Today's Sponsor