A new study based on the 2019 Medicare Current Beneficiary survey data shows that seniors using Medicare Advantage (MA) save nearly $2,000 in annual health care spending compared to traditional Medicare. The study shows MA beneficiaries report $1,965 less in annual out-of-pocket costs and premiums that fee-for-service Medicare beneficiaries. The savings are found in cost-share and premium buy-downs provided by MA.
According to the report, released by Better Medicare Alliance, health care spending went up 5% for MA beneficiaries and 9% for fee-for-service Medicare beneficiaries between 2018 and 2019. Having a lower average health care spend decreases the total percentage of income on health care costs for MA beneficiaries. The difference in cost burden is 13% for MA beneficiaries versus 20% for Medicare beneficiaries who pay privately. The costs variations are important to note because low-income Medicare beneficiaries are more likely to enroll in MA than those with a higher income.
Read the report brief here.