CostReduction, MedicareAdvantage, Quality of Care

Medicare Advantage costs 40 percent less than fee-for-service Medicare.

Medicare Advantage has long been touted as a cost-saving alternative to traditional Medicare, with recent statistics showing that Medicare Advantage costs 40 percent less than fee-for-service Medicare.”

SOURCE: Medicare Advantage Costs 40% Less than Fee-For-Service Medicare Health Payer Intelligencer (1/21/2020)

Actual Report from United Healthcare

Beneficiaries in Medicare Advantage Receive Better Value
and Spend 40% Less than Beneficiaries in Medicare FFS

NOTA BENE: Per capital costs shown below are about half of the average per capita cost of care in the U.S. (~$10,000) as shown in the exhibit below. What’s missing?