Medicare advantage provides strong financial value to beneficiaries As compared to all other coverage options
an important option for innovative, affordable access to care
Medicare beneficiaries have access to numerous coverage configurations including Traditional Fee-for-Service (FFS), FFS coupled with other products such as employer-sponsored insurance and Medigap supplemental insurance, and Medicare Advantage. Out-of-pocket expenses vary considerably across these coverage configurations.
ATI Advisory partnered with the Better Medicare Alliance to evaluate Medicare beneficiary cost experiences in the Medicare program. We found that beneficiaries enrolled in Medicare Advantage receive important cost protections when compared with beneficiaries in Traditional FFS. Across income levels, settings of care, and coverage configurations, Medicare Advantage beneficiaries experience lower out-of-pocket and premium costs than beneficiaries in FFS. Our analysis also adds to the evidence that Medicare beneficiaries enrolling in Medicare Advantage are more socioeconomically disadvantaged than Medicare beneficiaries in Traditional FFS, with lower levels of education and employment.
Medicare Advantage plans offer value in numerous ways, including decreased costs for beneficiaries and innovative benefit designs (see our work on benefit design analysis). This study highlights that value exists across beneficiary circumstances. As the Medicare population increases in size, the Medicare Advantage program provides an important option to allow for innovative, more affordable access to care.