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Medicare Commission Highlights MA’s Efficiencies in Delivering Benefits to Over 30 Million Americans

Press Release

Published Jan 17, 2023 • by AHIP

WASHINGTON, D.C. – (January 17, 2023) – During a recent public meeting, the Medicare Payment Advisory Commission (MedPAC) reported that Medicare Advantage (MA) plans are far more efficient at delivering basic benefits than original Medicare. For 2023, MedPAC estimates MA plan bids average just 83% of original Medicare costs, down from an average of 96% a decade ago. Furthermore, payments to MA plans, including bonuses for achieving higher quality ratings in the Medicare stars program, continue to be on par with original Medicare spending.

“In 2023, MA plans are delivering Medicare’s basic benefits even more efficiently, allowing them to offer lower out of-pocket-costs, important additional benefits, and greater value to enrollees,” said Matt Eyles, AHIP President and CEO. “We continue to believe that any comparison between MA and original Medicare must be ‘apples-to-apples’ – comparing costs for similar benefits and for similar enrollee populations between the programs. Otherwise, policymakers miss what over 30 million seniors and people with disabilities already understand—Medicare Advantage provides better services, better access to care, and better value.”

MedPAC also estimates that in 2023, virtually all Medicare-eligibles have access to at least one MA plan that includes all Medicare benefits including prescription drug coverage at no monthly premium (beyond the Part B premium). And most Medicare-eligibles will have access to multiple plan options; MedPAC says the average number of choices available in a county is 41 plans for 2023, allowing individuals to choose the plan that is right for them.


  • Click here to view a study comparing the value of Medicare Advantage compared with original Medicare.
  • Click here for a resource highlighting how CMS determined that MA has significantly lower net payment error rates than original Medicare.

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. Visit to learn how working together, we are Guiding Greater Health.