Press Releases
June 10, 2024

Medicare Advantage Beneficiaries Spend Over $2,500 Less Per Year Than Fee-For-Service Beneficiaries on Out-of-Pocket Costs

New independent analysis by ATI Advisory finds growing cost gap between Medicare Advantage and Fee-for-Service Medicare


WASHINGTON – Medicare Advantage beneficiaries spend an average of $2,541 less per year on out-of-pocket costs and premiums compared to those enrolled in Fee-for-Service Medicare, according to an independent analysis released today by ATI Advisory and commissioned by Better Medicare Alliance. The findings represent an increase from last year, when ATI reported that Medicare Advantage beneficiaries spent more than $2,400 less per year, on average. 

“The takeaway from this analysis is clear: Medicare Advantage is the best value for seniors, and the gap with Fee-For-Service Medicare is only growing,” said Mary Beth Donahue, President and CEO of Better Medicare Alliance. “We must ensure American seniors maintain access to high-quality care they can afford. That starts with supporting and strengthening Medicare Advantage.” 

Reduced spending in the analysis extends across racial and ethnic groups and is even higher for clinically complex beneficiaries. The analysis shows that Medicare Advantage beneficiaries with three or more chronic conditions spend an average of $3,165 less per year compared to Fee-For-Service enrollees.

“Empowering Hispanic seniors to achieve their best health starts with improving access to high-quality care they can afford. As this analysis shows, that’s exactly what Medicare Advantage is doing,” said Dr. Yanira Cruz, President and CEO of the National Hispanic Council on Aging. “The dramatic cost savings provided by Medicare Advantage will keep more Hispanic seniors healthy and help advance health equity in the United States.” 

“This study demonstrates that Medicare Advantage delivers on its promise to offer cost-effective, high-quality care,” said Catherine J. Tabaka, CEO of Matrix Medical Network. “As we partner with Medicare Advantage entities across the nation, our comprehensive, whole-person assessment contributes to the efficient coordination of personalized support and care for members. Navigating our healthcare infrastructure can be intimidating; the managed care of Medicare Advantage can improve outcomes for all involved.”

The findings come as 53 percent of Medicare enrollees — over 33 million individuals nationwide — choose Medicare Advantage for health care coverage. Critically, savings for Medicare Advantage beneficiaries are increasing even amidst a climate of rising health care costs. 

“Patients choose Medicare Advantage because they can save thousands of dollars a year compared to fee-for-service care, while accessing high-quality, value-based care options and services,” said Gary Jacobs, Executive Director, Center for Government Relations at VillageMD. “Medicare Advantage is an important element of a more accessible, equitable, and affordable health care system, and policymakers should continue to vigorously support it.”

The ATI analysis echoes recent findings in Better Medicare Alliance’s rural chartbook, which showed Fee-For-Service Medicare beneficiaries in rural areas spend 49 percent more on health care premiums and out-of-pocket costs than Medicare Advantage enrollees. 

Read the full analysis from ATI Advisory here.


Better Medicare Alliance is a community of more than one million grassroots beneficiaries and 200+ ally organizations working to improve health care through a strong Medicare Advantage. Learn more at

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