New report backs Medicare Advantage
By HME News Staff
Updated 9:10 AM CDT, Tue October 26, 2021
WASHINGTON – Better Medicare Alliance has released a new report conducted by Milliman highlighting the value of Medicare Advantage to the federal government. The report finds that Medicare Advantage provides $32.5 billion annually in additional benefits and lower out-of-pocket costs for beneficiaries, or about $123.36 per member per month. “This independent, actuarial report offers an important look at Medicare Advantage’s value to beneficiaries and the federal government,” said Mary Beth Donahue, President and CEO of the Better Medicare Alliance. “At a time when lawmakers are weighing important policy considerations for seniors’ health care, Milliman’s findings demonstrate that Medicare Advantage delivers additional benefits and reduced cost-sharing.” Specifically, the report finds that Medicare Advantage plans cover the same hospital and physician services at 24% lower cost per member per month (PMPM) than FFS Medicare ($709.66 in MA vs. $935.67 in FFS), excluding administrative expense and profits. To develop the report, Milliman researchers applied a sensitivity analysis by adjusting FFS Medicare costs by +/-5% to account for the possibility that government payments to Medicare Advantage and FFS Medicare are not directly comparable.
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