Analysis: Seniors save with Medicare Advantage

WASHINGTON – Beneficiaries with Medicare Advantage have $1,965 less in total annual health spending than those with fee-for-service Medicare, according to analysis conducted by ATI Advisory and supported by Better Medicare Alliance.    

“As this study shows, the path to meaningfully addressing Americans’ concerns about out-of-pocket costs and health care affordability and access for our nation’s seniors leads us to Medicare Advantage,” said Mary Beth Donahue, president and CEO of Better Medicare Alliance. “There is perhaps no more meaningful measurement of a program’s value than its effect on the consumer. In Medicare Advantage, we see that consumers are saving nearly $2,000 a year compared to FFS Medicare – savings that have continued to grow over recent years and are all the more valuable considering that over half of all Medicare Advantage beneficiaries live below 200% of the poverty line. With such robust cost protections across demographic groups, the value of Medicare Advantage for the Medicare dollar has never been clearer.”     

The analysis is based on 2019 Medicare Current Beneficiary Survey (MCBS) data, the most recent year available.     
The analysis also shows that consumer savings in Medicare Advantage persist across race and ethnicity. Specifically, beneficiaries with Medicare Advantage who are black report $1,104 less in total health spending compared to beneficiaries FFS Medicare, while those who are Latino see average savings of $1,421.    
“We see particularly strong results for historically disadvantaged populations, including Black and Hispanic beneficiaries and those who are low-income,” said Laura Benzing, analytic lead for ATI Advisory.