Washington, D.C. – (November 14, 2023) – The Medicare Part A Trust Fund could be extended by as much as 17 years if Part A services in the original Medicare program were used at the same level as Medicare Advantage, based on new research commissioned by AHIP and conducted by Avalere.
The study found that original Medicare uses hospital and post-acute services at a higher rate than Medicare Advantage. The report finds that if FFS Part A utilization was the same as Medicare Advantage utilization, spending would be lower, which would increase the solvency period of the HI Trust Fund to 2048.
“This new research shows that Medicare Advantage holds the key to extending Medicare’s Part A Trust Fund,” said Jeanette Thornton, Executive Vice President of Policy & Strategy at AHIP. “Avalere’s findings are remarkable: showing a 17-year boost for the trust fund if original Medicare could match Medicare Advantage’s efficiency. That demonstrates that Medicare Advantage is not only good for enrollees and taxpayers, but also offers a roadmap for delivering greater benefits without sacrificing quality.”
More than 31.5 million seniors and people with disabilities choose Medicare Advantage because it delivers better services, better access to care, and better value. Medicare Advantage has strong bipartisan support because it is a prime example of a public-private partnership that lowers costs, provides more choices, and delivers better outcomes for the American people.
- New Research: MA Enrollees Have Better Outcomes than People in Original Medicare
- Read Blog on AHIP Study conducted by Avalere
- Find more AHIP resources on Medicare Advantage
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 www.ahip.org to learn how working together, we are Guiding Greater Health.