Senate committee finds Medicare Advantage overpayments cost seniors billions

[BumRushDaShow]

Source: The Hill

03/13/26 6:19 PM ET


A report by the Senate Joint Economic Committee (JEC) found that overpayments to Medicare Advantage (MA) plans caused Medicare Part B premiums to rise for all beneficiaries, including those on Traditional Medicare (TM).

According to the JEC’s report, overpayments to MA plans caused standard monthly Medicare Part B premiums to go from $185 in 2025 to $203 in 2026.

In 2025, MA plans were paid $84 billion more than it would have cost to cover the same amount of beneficiaries with TM plans, an average of 120 percent more.

The report defined “overpayments” as the difference between what the federal government paid for MA plans versus Traditional Medicare (TM) plans. When payments to MA plans exceeds those for TM plans, premiums go up for both groups.

Read more: https://thehill.com/newsletters/health-care/5783713-senate-committee-finds-medicare-advantage-overpayments-cost-seniors-billions/

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Link to Senate Joint Economic Committee (JEC) PRESS RELEASE - JEC Brief Finds Medicare Advantage Overpayments Causing Increased Premiums for All Seniors

Link to Senate Joint Economic Committee (JEC) REPORT BRIEF (PDF) - https://www.jec.senate.gov/public/vendor/_accounts/JEC-R/issue-briefs/The%20Part%20B%20Premium%20Pass-Through.pdf

[Rhiannon12866]

1. (DU member) Thom Hartmann has been posting warnings about Medicare "Advantage" for years

According to the endless commercials urging seniors to sign up, the deadline was December 7th, but the commercials still haven't quit like they did before, they've started all over again.

[Demobrat]

2. They used to concentrate on open enrollment.

Which is when people can switch plans. But they figured out people turn 65 throughout the year and they don’t want to miss anybody.

[Bengus81]

7. Yeah..but in the fall they run the SCAM that in mid-Dec you will no longer be able

to get a plan or switch till next fall--total 100% LIES. Hell...mine got so outrageously high with that AARP con job United Health care I had to cancel.

I'm also giving AARP the boot when my sub runs out it August. Those fuckers don't give a shit about seniors other than to sell them a supplement plan and life insurance and a yearly subscription.

[Demobrat]

11. I dropped my UHC/AARP plan G because

they tried to push me into an Advantage Plan. In California we have the “birthday rule”. You can switch plans for 30 days before or after your birthday month. I went with Anthem. Not that they’re wonderful people either. But they’re not UHC.

[BumRushDaShow]

3. Agree with Demobrat

The enrollment outside of the typical "open enrollment period", can correspond to a "life change", as in someone turning 65, and that is continually happening year round (with the threat of a "use (sign up) or lose" if you don't apply on time and end up with a penalty! You might also have someone over 65 and still working, who switches jobs and the coverage changes, etc.

[Rhiannon12866]

4. I guess I misspoke. Thom Hartmann has warned folks for years that the "Advantage" is a ripofff

[BumRushDaShow]

5. It definitely is

and that (under it's current name "Medicare Advantage" as a change from what Clinton had enacted almost decade earlier) was all a Shrub production as a trade-off for getting Medicare Part D (Prescription Drug coverage for Medicare).

[JT45242]

6. Wait not somali immigrants but corporate cheaters and lobbyists

As a great character one said
INCONCEIVABLE!!!!!!

[mdbl]

8. If they could make MA plans cover things properly

It would still be cheaper than regular medicare and having to pay a supplement plan to cover what medicare won't. Medicare part A only covers 80% and no doctor bills. Having to pay 20% of a hospital would be a life-breaker for most people. Supplemental plans cost an additional $2000 or more per year on top of the part B expense. It's all a ripoff. Of course, a universal health care plan would work best.

[Demobrat]

12. I had a MA Plan for a little while.

Long story short, they dropped the only decent hospital in the network due to “contract negotiations”. They didn’t let us know. I found out when I tried to make an appointment for a mammogram. Oops, no, sorry, we don’t take your insurance anymore. Gotta go to the two star clinic across town.
Thank goodness I was able to get out and get OM with a supplement. The premium is worth the peace of mind. I can go anywhere, no problem. It’s been great.

[mdbl]

14. I am glad you found what works for you

It all depends on the amount of financial resources of the individual. Most retirees on smaller fixed incomes find it harder to afford it.

[Demobrat]

15. It's an expense for sure, but I would rather cut back in other areas.

After that experience, MA plans terrify me.

[progree]

9. In case anyone else can't access the article

https://archive.ph/12xZK

For me, the OP link gets me on the article page, but a big banner pops up asking me to subscribe to The Hill's Health Newsletter, and when I click on "No Thanks", it takes me to The Hill's front page. I browser-searched that for "Medicare" with no hits.

There isn't much additional in the article beyond what is excerpted in the OP.

[PSPS]

10. And part of that ripoff gets laundered back to republicans as "campaign contributions"

[KPN]

13. And let's be honest, probably some Democats too.

[Historic NY]

16. In other words they scammed the US Taypayers......

out of money. They should be required to pay it all aback . Medicare Advantage is not Medicare....you can seem to get people to understand that. People want to know why their deducting more this year for Medicare part b, the increase is because of this.

[BattleRow]

17. It should be called MD...Medicare Disadvantage.

[moose65]

18. This is my understanding of how Medicare Advantage works:

Instead of paying for medical procedures as they occur (which original Medicare does), Advantage plans are paid a set amount for each enrollee every year, paid from the Medicare trust fund. The amount is something like 12 or 13 thousand dollars per person.

If the enrollee doesn’t use the entire amount during the year, then the insurance company administering the Advantage plan gets to keep the excess amount as profit - that’s part of this 84 billion in overpayments. They toss a few bones to the enrollees, like cash for food, dental coverage, or vision coverage. Enrollees like those benefits, so they get into arguments on social media and defend the plans. That was by design, so people will defend the plans.