Higher Spending for Medicare Advantage Renews Call for Revamp

Medicare will spend roughly $84 billion more this year to care for beneficiaries in managed care plans than if they were enrolled in the program’s traditional fee-for-service option, a congressional advisory panel reported Thursday.

The higher spending means taxpayers will pay a projected $538 billion to these private Medicare Advantage plans in 2025, up from $494 billion last year, according to the Medicare Payment Advisory Commission’s March report to Congress. The extra MA spending will also cause Part B premiums for outpatient care—which are paid by all beneficiaries—to jump $13 billion this year, about $198 per person, the commission ...