Potential growth of Medicare Advantage plans

KFF Family News reported on the president-elect's plan to promote Medicare Advantage, a scheme where private insurers can administer (and be reimbursed for) Medicare plans. Theoretically, the increased competition and the incentive that insurers can keep whatever savings they generate should lead to more efficient or higher quality care -- or both. However, the plans have been found to cost more: "In 2023, Medicare Advantage plans cost the government and taxpayers about 6% — or $27 billion — more than original Medicare, though some research shows they provide better care."

One challenge reported in an earlier article is that some providers no longer accept Medicare Advantage plans, even if they accept traditional Medicare. The complication is that some patients who have been on Medicare Advantage may find it difficult to afford supplemental insurance (to cover the 20% patient responsibility) if they change back to traditional Medicare, if they have a preexisting condition. As a result, those patients may find themselves effectively stuck with Medicare Advantage.