Physicians for a National Health Program estimate, based on 2022 spending, that Medicare Advantage overcharges taxpayers by a minimum of 22% or $88 billion per year and potentially by up to 35% or $140 billion. By comparison, Part B premiums 2022 totaled approximately $131 billion, and overall federal spending on Part D drug benefits cost roughly $126 billion. A 2021 analysis from the Kaiser Family Foundation found that for a hospital stay of six days, most of those on Medicare Advantage would incur higher costs than they would with Original Medicare.
Medicare Advantage (MA) plans have been promoted as a private-sector solution to traditional Medicare’s challenges. While many beneficiaries enjoy the additional benefits and lower out-of-pocket costs that some of these plans offer, it is essential to understand the potential drawbacks of Medicare Advantage from the perspective of patients and taxpayers.