More Than “Perks”: The Real Value of Medicare Advantage Supplemental Benefits
In the coming weeks, millions of seniors will begin reviewing their Medicare coverage for 2027 — and some seniors might be surprised to see changes to the benefits they rely on, even after significant reductions in recent years.
The cause: Recent underfunding and policy changes in Medicare Advantage have put pressure on plans to trim benefit offerings to keep health coverage affordable for seniors. It’s just one example of why stability and predictability are essential to protecting the affordable, comprehensive coverage seniors value.
Millions of seniors rely on their Medicare Advantage plans to provide essential health benefits not offered in traditional Fee-for-Service Medicare: dental, hearing, and vision coverage, transportation to medical appointments, fitness classes, nutrition support, and more. These benefits are designed to keep seniors healthier and more independent, with fewer hospital visits. Without Medicare Advantage, many seniors would face these costs entirely out of pocket or be forced to go without.
A recent New York Times article examining supplemental benefits raised questions about how these benefits are used and how their impact is measured. But it also showed what these benefits mean to the people who rely on them.
John Holland, a 78-year-old Medicare Advantage beneficiary in Maine, uses the gym membership provided by his plan. “They’re trying to keep you healthy, keep you moving,” he told the Times.
In Arizona, Lorinda Destrini, 68, uses her plan’s benefits for healthy foods and over-the-counter pharmacy items, as well as rides to medical appointments. “A lot of people nowadays have a hard time buying groceries,” she told the Times.
These benefits operate within a defined federal framework. Most must meet CMS’s “primarily health related” standard, while Special Supplemental Benefits for the Chronically Ill must meet additional requirements. CMS has also taken steps to strengthen transparency and reporting around supplemental benefits. Better data can help beneficiaries make informed choices and aid policymakers’ understanding of how these benefits are being used.
Notably, Medicare Advantage beneficiaries do not pay more for these benefits. In fact, they save money compared to those enrolled in Fee-for-Service Medicare — while receiving access to more comprehensive care and services. A new ATI Advisory analysis, commissioned by BMA, found that Medicare Advantage beneficiaries spent an average of $2,824 — or 36% — less out of pocket than beneficiaries in Fee-for-Service Medicare in 2023. For millions of seniors living on limited and fixed incomes, those savings can make a huge difference.
As seniors begin evaluating their coverage for 2027, the focus should be on ensuring they have clear information about their options and access to coverage that meets their health and financial needs.
Supplemental benefits should be transparent, accountable, and designed around beneficiaries’ health needs. But they should also be recognized for what they are: an important part of the coverage millions of seniors have chosen — and a meaningful source of health, independence, and financial value.