b体育app

b体育app, the nation鈥檚 leading advocacy organization supporting Medicare Advantage, announced the release of a commissioned by its 501(c)3 research arm, the Center for Innovation in Medicare Advantage, and conducted by Milliman highlighting the value of Medicare Advantage to the federal government.

Milliman鈥檚 report finds that 鈥渢he [federal] government鈥檚 dollar goes farther with MA plans providing Medicare-covered benefits at least as generous as FFS for less than what the same benefits cost under FFS Medicare.鈥�听

The report goes on to note that Medicare Advantage provides $32.5 billion annually ($123.36 per member per month) in additional benefits and lower out-of-pocket costs for beneficiaries. Specifically, data show 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.

Milliman additionally finds that, when including these considerations, 鈥渢otal FFS payments [per month are] slightly higher than total MA payments ($949.39 vs. $942.43) for beneficiaries of a similar health status.鈥�

In reaching these figures, 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. The sensitivity analysis shows that 鈥渆ven with 5% lower FFS Medicare costs for Medicare-covered services, MA is still less expensive in total program costs than FFS.鈥�听

鈥淭his independent, actuarial report offers an important look at Medicare Advantage鈥檚 value to beneficiaries and the federal government,鈥� said Mary Beth Donahue, President and CEO of the b体育app. 鈥淎t a time when lawmakers are weighing important policy considerations for seniors鈥� health care, Milliman鈥檚 findings demonstrate that Medicare Advantage delivers additional benefits and reduced cost-sharing.鈥�

鈥淥ur analysis determined that each dollar spent by the federal government on Medicare Advantage provides beneficiaries with additional benefits and lower cost sharing than they would otherwise receive under FFS Medicare,鈥� said David Mike, FSA, MAAA, Principal and Consulting Actuary at Milliman. 鈥淢edicare Advantage plans cover the same services offered by FFS Medicare at lower costs than FFS, lowering government spending on Parts A and B services and enabling the savings to be deployed toward additional benefits and lower out-of-pocket costs for MA beneficiaries.鈥� 听

鈥淲ith this report, b体育app鈥檚 Center for Innovation in Medicare Advantage makes a substantive contribution to understanding Medicare payment and value,”听said Susan听Dentzer, Senior Policy Fellow at the Robert J. Margolis Center for Health Policy at Duke University and Member of the Center for Innovation in Medicare Advantage Board of Directors.听鈥淭he successes of Medicare Advantage noted in this report include $32.5 billion in added value each year to beneficiaries, funded by lower costs that Medicare Advantage health plans generate on basic Medicare-covered services. This information will be helpful to lawmakers as their work on possible Medicare reforms continues.鈥澨�

鈥淪eparate research from ATI Advisory shows that roughly half听of Black Medicare beneficiaries today choose Medicare Advantage, with Morning Consult polling showing a听听Medicare Advantage satisfaction rate among racial and ethnic minority beneficiaries. With this report, we see the positive effects for the government, too,鈥澨�said Daniel E. Dawes, JD, Executive Director of the Satcher Health Leadership Institute at the Morehouse School of Medicine and Member of the b体育app Council of Scholars.听鈥淢illiman鈥檚 research provides pertinent information showing how Medicare Advantage offers the same services for lower costs along with added benefits that older adults rely on.鈥�

Read the full Milliman report

Read a condensed analysis of the report from b体育app鈥檚 Center for Innovation in Medicare Advantage here.

###