A new analysis finds that Medicare Advantage enrollees spend less on average than those in the traditional program, but report similar satisfaction levels.
ATI Advisory conducted the study on behalf of the Better Medicare Alliance, analyzing data from the Medicare Current Beneficiary Survey and Cost Supplement files from 2021 to 2023. The analysis found that MA enrollees spent $2,824, or 36%, less out-of-pocket on average in 2023 compared to those in fee-for-service Medicare.
And the difference in spending has risen over time, with savings 16% higher in 2023 than in 2022, according to the report.
In addition, the researchers found similar scores for satisfaction with their quality of care and access, though the costs for MA beneficiaries were lower.
Twelve percent of MA beneficiaries said they faced a significant cost burden, or spent more than 20% of their income on healthcare, compared to 24% of people enrolled in traditional Medicare.
The trend toward lower spending held across incomes, racial and ethnic groups, geographic region and number of chronic conditions. BMA said in an announcement that this finding is particularly notable as many MA enrollees are lower-income or have multiple chronic conditions.
More than half (54%) of Medicare Advantage beneficiaries have incomes below 200% of the federal poverty level, compared to 30% of those in fee-for-service Medicare. More than three-quarters of MA members have three or more chronic needs.
Beyond spending, the survey found that members in MA plans were 15% more likely than those in traditional Medicare to have had an annual wellness visit.
“With rising healthcare costs putting more pressure on seniors, this report shows that Medicare Advantage is delivering meaningful savings while maintaining high-quality care,” said Mary Beth Donahue, CEO of Better Medicare Alliance, in the release. “More than 35 million beneficiaries count on Medicare Advantage for the affordability, benefits, and coordinated care it provides, and policymakers should protect and strengthen what is working.”