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America’s Seniors Speak: Medicare Advantage Delivers Value, Affordable Coverage, and Saves Money

Press Release

Published Feb 27, 2024 • by AHIP

WASHINGTON, D.C. – (February 27, 2024) – More than 33 million Americans—over 50% of eligible Medicare seniors—choose Medicare Advantage (MA) because the program delivers better services, better access to care, and better value. Today, seniors and policy leaders on Capitol Hill sent a clear message to Congress and the Administration: our Medicare Advantage coverage is a vital financial and health lifeline that should be protected.

Seniors from AHIP’s Coalition for Medicare Choices as well as leaders from America’s Physician Groups, the Commonwealth Care Alliance, and the National Hispanic Council on Aging spoke with Congressional members and staff to reinforce the importance of the MA program for America’s seniors and the advancement of value-based reforms across the health system.

“America’s Physician Groups care for approximately 1 in 3 Medicare Advantage enrollees, and our members believe that the program is a key enabler of their ability to deliver value-based health care,” said Jennifer Podulka, Vice President, Federal Policy for America’s Physician Groups. “At its best, the MA program encourages physicians and health plans to align on shared incentives to produce high quality, cost-effective care for older adults and other MA enrollees. We will continue to work with Congress to strengthen Medicare Advantage and achieve the best possible results from the program.”

MA provides greater financial protection for seniors by reducing Medicare’s cost-sharing and offering additional benefits that Fee-for-Service (FFS) Medicare doesn’t cover, including a cap on out-of-pocket costs. In fact, a 2023 analysis by ATI Advisory found that in 2020, MA enrollees spent an average of $3,114 on premiums and out-of-pocket costs, compared with $5,548 for those in original Medicare. In other words, MA delivered average savings of more than $2,400.

“When I started my retirement, I was initially enrolled in fee-for-service Medicare but was unable to afford the insulin I needed to manage my diabetes,” CMC member Bill Wong. “That’s when I switched to Medicare Advantage. Through this program, I can access the medications I need, and it’s easy to manage my checkups and appointments. I recently had an unexpected hospital stay, and the program provided me with an in-home nurse to help with my recovery. With Medicare Advantage, it’s like having my own personal care team constantly making sure I’m staying healthy—no other health plan has this level of high-quality care at an affordable price—I encourage policymakers to protect the program.”

People enrolled in MA like the program because it provides them with the care and coverage they need at prices they can afford. In fact, a recent survey found that:

  • 90% of senior voters with MA are satisfied with the affordability of their coverage;
  • 94% senior voters with MA are satisfied with access to medical care; and
  • 9 in 10 senior voters with MA said they’re satisfied with their prescription drug coverage and the preventive services they receive.

“With my Medicare Advantage plan, I never have to think twice about how I am going to afford medical bills,” said CMC member Sandy Smith. “When I had my knee replacement surgery, I was worried I couldn’t afford the procedure, but my plan covered everything I needed, including transportation services and physical therapy. Medicare Advantage’s emphasis on affordability has been a lifesaver when it comes to taking care of myself. I am counting on lawmakers to protect the program for the 33 million Americans who depend on it.”

In addition, a 2023 analysis by the Employee Benefit Research Institute found that a 65-year-old retiree who chooses to enroll in MA needs on average 40% less in savings to cover health care costs over their remaining lifetime than a person who chooses FFS Medicare.

“More than 4 in 5 Hispanic seniors have multiple chronic conditions, making affordable and comprehensive health care coverage a necessity. A growing majority of Hispanic seniors see Medicare Advantage as a vital lifeline that makes a critical difference in their health and financial well-being. They encourage policymakers to strengthen and expand the program’s coverage in order to extend its reach, and improve its impact," said Dr. Yanira Cruz, President and CEO, National Hispanic Council on Aging.

MA also provides an important pathway for cost-savings to taxpayers. A recent study found that applying select MA practices to FFS Medicare has the potential to significantly improve Medicare’s efficiency, potentially extending the Medicare Hospital Insurance (HI) Trust Fund’s viability by as much as 17 years.

“Medicare Advantage plans consistently engage seniors with a unique focus on the care they need in context of communities in which they live,” said Michelle Soper, Vice President of Federal Policy & Advocacy for Commonwealth Care Alliance. “From our vantage point, bringing everyone together in the local health care community to deliver highly personalized care is the core of what we do, and it’s how Medicare Advantage transforms care delivery into 24-7 support that is equitable, patient-centered, and sustained over the long-term.”

About AHIP

AHIP is the national association whose members provide health care coverage, services, and solutions to hundreds of millions of Americans every day. We are committed to market-based solutions and public-private partnerships that make health care better and coverage more affordable and accessible for everyone.