As congressional leaders prepare to discuss Medicare Advantage during a joint subcommittee hearing tomorrow, the data tells a compelling story: Medicare Advantage (MA) has become the preferred choice and coverage option for nearly 35 million seniors and individuals with disabilities nationwide—a testament to its ability to deliver coordinated care, substantial cost savings, and comprehensive benefits that far exceed fee-for-service (FFS) Medicare.
For two decades, Medicare Advantage has provided seniors with superior financial protection and meaningful improvements for their health, while also advancing the value-based, patient-centered reforms that are sorely needed throughout our health care system.
By the numbers:
- Nearly 35 million Americans have chosen MA as their preferred coverage option.
- Over $3,400 per year saved: MA beneficiaries report spending $3,486 less on out-of-pocket costs and premiums compared to Fee-For-Service Medicare (FFS) beneficiaries.
- $4,120 saved: MA beneficiaries with 3+ chronic conditions spend on average $4,120 less than FFS beneficiaries.
- 46% less: MA beneficiaries spend 46% less than FFS beneficiaries in out-of-pocket costs and premiums.
- 11%: Based on a comparison of beneficiaries with similar clinical, demographic, and social risk factors who enroll directly into MA versus FFS, if the FFS enrollees had instead received care under MA, their average costs would have been 11% lower.
- 9 out of 10: Across 10 HEDIS measures, MA outperformed FFS in all but one. This includes: cancer screenings, cardiovascular disease, diabetes, musculoskeletal disease, and COPD care.
- 95%:
MA beneficiaries who report high rates of health care satisfaction and access to care.
- 95% are satisfied with health care quality.
- 96% are satisfied with ease of getting to the doctor.
- 95% report having a usual source of care.
- 36%: The percentage of MA beneficiaries who have annual incomes of less than $25,000. By comparison, only 20% of FFS Medicare enrollees have incomes of less than $25,000.
- 4 million: The number of MA beneficiaries living in rural areas.
- ~59%: Medicare beneficiaries from diverse populations who choose MA, including 61% of Hispanic or Latino individuals and 63% of Black individuals.
- 21%: Among a population of beneficiaries aging into Medicare for the first time, relative to FFS enrollees, MA beneficiaries exhibit a 21% higher likelihood of having one or more chronic conditions; that disparity grows as the number of conditions increases.
It is clear that Medicare Advantage is working for the beneficiaries who choose it—more than half of Medicare-eligible seniors and growing. The question for policymakers is how to build upon its proven success to meet the health care needs of an increasingly diverse and growing population even as the underlying cost of care continues to increase.
Key Resources:
- Value of Medicare Advantage
- Medicare Advantage Practices Extend the Medicare Trust Fund Solvency While Enhancing Health Outcomes
- 2025 Medicare Advantage Landscape
- Key Findings: Medicare Beneficiary Spending 2025
- It Bears Repeating: Medicare Advantage Outperforms FFS on Patient Care
- Seniors Choose Medicare Advantage for Better Care at Lower Costs – Protecting their Benefits is Critical
- New Analysis Shows Medicare Advantage Outperforms Fee-for-Service Medicare in Improving Patient Outcomes, Delivering Care at a Lower Cost
- New Analysis Rebuts MedPAC’s Claims about Medicare Advantage