Higher and Faster-Growing Spending Per Medicare Advantage Enrollee Adds to Medicare’s Solvency and Affordability Challenges

  • Health Policy

Medicare spending was $321 per-person higher in 2019 and growing faster per person for beneficiaries in Medicare Advantage (MA) than in traditional Medicare, according to a KFF report published in August 2021. The higher spending contributed to an estimated $7 billion in additional spending in 2019. Between 2021 and 2029, higher spending will come from growth in MA enrollment and in Medicare payments per MA enrollee, the report added. The Biden Administration supports reforming MA payments to private plans to extend the solvency of the Medicare Hospital Insurance (HI) Trust Fund and improve affordability for beneficiaries, the report said.

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