For Medicare Advantage enrollees, the open enrollment period during which they can switch their Medicare Advantage plans began Oct. 15.
Medicare Advantage (MA) is the program through which seniors and other beneficiaries receive their Medicare benefits from private insurance companies. The plans are popular—nationwide, 54% of Medicare beneficiaries are enrolled in an MA plan, yet less than 4% change their plan during open enrollment.
Despite its popularity, MA plans have come under increasing criticism from politicians on both sides of the aisle. Earlier this year, Rep. Lloyd Doggett (D-TX) referred to the program as “Medicare Disadvantage,” claiming it is “straining our health care system and threatening consumers’ access to necessary health care.” Meanwhile, Rep. Greg Murphy (R-NC) accused insurers of having “bastardized the system.”
These attacks on Medicare Advantage are myopic because MA plans save money for both beneficiaries and taxpayers.
A new study from the UCLA Center for Health Policy Research finds that MA plans reduce healthcare costs for seniors. The study examined counties in California and found that counties with an MA enrollment rate of 20% or above had average monthly healthcare costs of $273. By contrast, seniors in counties with MA enrollment lower than 20% faced average monthly costs of $557.
Moreover, counties with higher MA enrollment saw an 11% increase in monthly healthcare costs over the decade from 2013 to 2023, while counties with lower enrollment experienced a 54% increase.
The study also found that healthcare costs actually declined when the number of enrollees rose from below 20% to above it. From 2013 to 2023, this shift occurred in five counties—Amador, Kings, Santa Cruz, Tulare, and Yuba. Monthly healthcare costs for seniors dropped in each of these counties over that time, with average costs falling from $522 to $281.
That’s a clear cost benefit for seniors, especially in a state with a famously high cost of living.
This news comes against the backdrop of existing evidence showing that Medicare Advantage is better at saving taxpayers money than traditional Medicare. A study by the research firm Avalere found that if traditional Medicare performed as well as MA, the Medicare trust fund would be solvent for an additional 17 years.
One reason for these savings is that MA plans are better at managing costs. Better cost management also benefits enrollees by reducing out-of-pocket costs like co-pays and cost-sharing. Additionally, the inclusion of vision, dental, and prescription drug coverage helps prevent expensive health issues, as dental problems or lack of medication adherence can lead to other costly conditions covered by both MA and traditional Medicare.
Fortunately, many politicians recognize the value of MA plans. In early 2024, multiple senators signed a letter calling on the Centers for Medicare & Medicaid Services to “sustain and strengthen Medicare Advantage.” Signatories included conservatives like Tim Scott (R-SC) and Ted Cruz (R-TX), as well as liberals such as Amy Klobuchar (D-MN) and Chuck Schumer (D-NY).
Notably, California Senator Alex Padilla also signed the letter—likely because 56% of those eligible for Medicare in the Golden State are enrolled in an MA plan. As the UCLA study shows, MA has helped keep costs low for many of his constituents.
Medicare Advantage plans are popular with seniors because insurers compete for their business by lowering costs while maintaining quality. Politicians should leave the program alone.
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*David Hogberg is an independent writer living in Washington, DC. The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.*
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https://dailycaller.com/2025/10/20/opinion-medicare-advantage-reduces-healthcare-costs-for-seniors-david-hogberg/