Medicare

An analysis finds higher Medicare spending among people who switched from Medicare Advantage to traditional Medicare than for similar beneficiaries who were in traditional Medicare all along.

Medicare spent an average of 27% more on such beneficiaries, according to the analysis, which examined health costs in traditional Medicare for both groups in the year following the switch, after adjusting for differences in health status and other characteristics. This amounts to a difference of $2,585 in Medicare spending per person, on average, between the two groups in 2022.

Medicare Advantage, the private plan alternative to traditional Medicare, covers nearly 33 million beneficiaries, or 54%, of the eligible Medicare population. A new analysis finds that the average Medicare beneficiary can choose among 34 Medicare Advantage plans with prescription drug coverage (MA-PDs), two fewer than last year, and among plans offered by eight firms. About 5% of current Medicare Advantage enrollees in individual MA-PDs are in a plan that has been terminated for 2025.

A companion analysis, Medicare Advantage 2025 Spotlight: A First Look at Plan Premiums and Benefits, provides an overview of premiums and benefits in Medicare Advantage plans for 2025, and key trends over time.