Story perspectives
Medicare Advantage Surges: 35M Enrolled Amid Rising Costs
9/10/2025
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Story summary
- Medicare Advantage (MA) enrollment exceeds 35 million, representing over half of Medicare beneficiaries, due to flexible benefits and marketing.
- A MedPAC report finds no significant correlation between higher MA enrollment and hospital profit margins, challenging hospital claims.
- Hospitals experience lower payments from MA plans than traditional Medicare, prompting some to terminate MA contracts.
- Medicare Part B premiums are expected to rise to $206.50 in 2026, affecting all beneficiaries.
- Changes in MA plans could reduce benefits or increase out-of-pocket costs, requiring careful plan reviews.
