Summary of Report: Medicare Advantage Provides Key Financial Protections to Low- and Modest-Income Populations
Medicare Advantage plans have the flexibility to offer cost and coverage policies that are not available in Traditional FFS Medicare.
- Medicare Advantage plays a critical role in protecting financially vulnerable Medicare beneficiaries with low- to modest- incomes from out-of- pocket (OOP) health care costs.
- Low-income Medicare beneficiaries experience lower cost burden associated with OOP costs compared to low-income beneficiaries in Traditional Fee-for-Service (FFS) Medicare.
- Medicare Advantage enrollees report total spending (OOP cost sharing plus premium costs) to be $1,276 less than beneficiaries in Traditional FFS Medicare.
- Chronically ill Medicare beneficiaries are choosing Medicare Advantage at rates that mirror Traditional FFS Medicare.