MedPAC Reports $84 Billion Medicare Advantage Cost Overrun

The Medicare Payment and Advisory Commission (MedPAC) has released new estimates indicating that the federal government is projected to spend $84 billion more on Medicare Advantage (MA) enrollees than if these individuals were enrolled in traditional fee-for-service (FFS) Medicare plans. This discrepancy highlights the increasing costs associated with MA plans. MedPAC's annual report suggests that by 2025, the Centers for Medicare & Medicaid Services (CMS) is expected to spend around 20% more on MA beneficiaries compared to their FFS counterparts. These findings may impact future Medicare policy discussions and budget considerations.