Medicare Advantage Enrollees Could Significantly Reduce Medical Costs by Switching Plans
Seniors enrolled in Medicare Advantage insurance plans could save 19% annually on healthcare spending by switching to a lower-cost Medicare Advantage alternative offered in their area, according to a new study.
More than 16 million Americans are covered by Medicare Advantage plans, which are offered by private insurers as alternatives to traditional Medicare.
For each year that enrollees remained in their Medicare Advantage plans, researchers found, premium and out-of-pocket costs increased by roughly $50.
Beneficiaries who remained in their plans for 6 or more years were most at risk of spending higher amounts, paying $786 more each year than they would have spent in the lowest-cost plan available to them.
For details see Jacobs & Molloy. (2017). How do Medicare advantage beneficiary payments vary with tenure? American Journal of Managed Care.