Talking Points: 26 March 2024

A deeper dive into a key issue driving the healthcare reform conversation.

Week in Review

MEDICARE ADVANTAGE VALUE The Medicare Advantage (MA) program continues to outperform original Medicare.

Quick takeaway: By focusing on coordinated care and whole-person health, MA plans drive better value for senior enrollees, such as improved health outcomes, lower costs, and greater access to more benefits.

Digging deeper: A growing body of research reinforces how MA outperforms original Medicare in a variety of ways, including:

  • Better health outcomes – MA enrollees see fewer avoidable hospitalizations and readmissions, as well as lower rates of high-risk medication use
  • Cost savings – MA offers enrollees $2,400 in annual savings by delivering lower premiums and reducing out-of-pocket spending
  • Health equity – Latino, Black, and Asian Medicare eligible enrollees are significantly more likely to choose MA plans over original Medicare

What it means: With 26 million Baby Boomers expected to age into Medicare by the end of this decade, there’s growing concern over the financial health of the program.

Research highlights that MA delivers the same benefits as original Medicare for 83 cents on the dollar. With the remaining savings, MA plans can offer even more benefits, often including vision, dental, and hearing coverage.

It’s no wonder that another recent study shows that if original Medicare was run like MA, the life of the program would be extended by 17 years, ensuring that it’d be around for the next generation of seniors.


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