An updated policy primer discusses the current role of the plans in the Medicare program.

Everything You Need to Know About Medicare Advantage

February 1, 2024

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The Centers for Medicare and Medicaid Services has announced that government payments to Medicare Advantage plans in 2025 are expected to increase an average of 3.7 percent from 2024.

With the growing popularity of these private plans — about half of Medicare beneficiaries were enrolled in one in 2023 — it’s more important than ever that policymakers, the media, and the public understand how Medicare Advantage works, the key issues around costs and value, and ways to ensure plans provide effective, efficient, and equitable care. In our newly updated Medicare Advantage primer ([link removed] ) , you’ll learn about:

- the differences between Medicare Advantage and traditional Medicare
- how the government pays plans
- why Medicare Advantage costs the government more than traditional Medicare
- the extent of choices and competition among plans
- what the future may hold for the program.

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Affordable, quality health care. For everyone.

The Commonwealth Fund, 1 East 75th Street, New York, NY 10021

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