New Research Finds Beneficiaries with Medicare Advantage Spend Less Than Those in Medicare Fee-for-Service
January 21 2020 - 10:00AM
Business Wire
- Beneficiaries with Medicare Advantage (MA) typically receive
better value and spend nearly 40 percent less than those in
Medicare Fee-for-Service (FFS)
- Seniors enrolled in MA can save $50,000 to $85,000 over
their lifetime
- MA plans provide additional, high-value services that reduce
health care costs and improve outcomes
Beneficiaries enrolled in Medicare Advantage (MA) plans
typically spend nearly 40 percent less than beneficiaries in
Medicare Fee-for-Service (FFS) programs, according to new research
released today by UnitedHealth Group (NYSE:UNH).
The research found that the average annual health care costs for
a 72-year-old MA beneficiary of average health are $3,632, compared
to up to $5,960 for Medicare FFS beneficiaries. Over their
lifetime, seniors enrolled in Medicare Advantage can save $50,000
to $85,000.
Those savings and protections are especially important since
half of Medicare beneficiaries live on fixed annual incomes below
$27,000.
The Cost Difference between FFS and MA
A typical beneficiary enrolled in MA with Part D prescription
drug coverage spends:
- $1,477 less than beneficiaries enrolled in FFS and Part D
coverage;
- $1,809 less than beneficiaries who purchase Medigap Plan G as
supplemental coverage for out-of-pocket costs; and
- $2,328 less than beneficiaries who purchase Medigap Plan F as
supplemental coverage.
An average beneficiary who chooses an MA-PD plan pays between
$1,265 and $1,918 less than a 65-year-old FFS beneficiary in
average health. Choosing an MA-PD plan offers savings, regardless
of age.
The Coverage Difference Between FFS and MA
Medicare Advantage plans offer all the same benefits as Medicare
FFS, while including additional protections and benefits, not
covered by Medicare FFS, that help beneficiaries stay healthy,
improve care outcomes, and avoid unforeseen medical costs.
In addition to covering 6 percent more of the cost of hospital
stays and physician office services than FFS, MA plans also include
Part D prescription drug coverage, caps on annual out-of-pocket
costs, and care management programs. Most plans also include
dental, vision, and hearing coverage. MA beneficiaries with chronic
conditions receive more preventative care and experience fewer
emergency department visits and lower rates of avoidable
hospitalizations compared to FFS beneficiaries.
Read more about the research at www.unitedhealthgroup.com.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a diversified health care
company dedicated to helping people live healthier lives and
helping make the health system work better for everyone.
UnitedHealth Group offers a broad spectrum of products and services
through two distinct platforms: UnitedHealthcare, which provides
health care coverage and benefits services; and Optum, which
provides information and technology-enabled health services. For
more information, visit UnitedHealth Group at
www.unitedhealthgroup.com or follow @UnitedHealthGrp on
Twitter.
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version on businesswire.com: https://www.businesswire.com/news/home/20200121005406/en/
UnitedHealth Group Caroline Landree caroline.landree@uhg.com,
651-308-2481
UnitedHealth (NYSE:UNH)
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