Medicare Advantage plans are an integral part of the Medicare program. They provide beneficiaries a multitude of options and offer additional benefits to enrollees. As the popularity of these plans continues to grow and enrollment rises, however, the Medicare program will face several challenges. First, higher costs relative to traditional Medicare will strain federal spending and the solvency of the Hospital Insurance (Part A) trust fund. Second, increased enrollment could necessitate changes to the payment system for Medicare Advantage plans. Third, questions remain about the quality of Medicare Advantage plans relative to traditional Medicare.
With Medicare Advantage plans predicted to soon become the dominant form of Medicare coverage, it will be important to assess beneficiaries’ experiences and the long-term sustainability of the program to ensure Medicare Advantage plans provide effective, efficient, and equitable care.
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