Better Medicare Alliance Statement on 2026 Medicare Advantage Advance Notice

WASHINGTON — Better Medicare Alliance, the leading research and advocacy organization supporting Medicare Advantage, today issued the following statement in response to the Centers for Medicare & Medicaid Services (CMS) release of the 2026 Medicare Advantage and Part D Advance Notice:

“After two consecutive years of Medicare Advantage cuts, seniors are struggling with plan closures, fewer benefits, and higher costs. They can’t afford to be squeezed again,” said Mary Beth Donahue, President and CEO of Better Medicare Alliance. “The Trump administration will have an important opportunity to strengthen Medicare Advantage beginning on Day One. President Trump can immediately deliver on his promise to protect Medicare for seniors by examining these policies, including ensuring the rates keep up with increasing medical costs and that the final rate notice provides much needed stability for seniors.”

A record number of Americans will choose Medicare Advantage in 2025, with more than 34 million seniors and individuals with disabilities currently enrolled in the program. Medicare Advantage now comprises more than half of the Medicare-eligible population, providing better care at a lower cost to beneficiaries than Fee-For-Service Medicare.

Medicare Advantage has high penetration rates in states like Pennsylvania, Florida, Arizona, and Nevada, reflecting the program’s broad appeal across urban, suburban, and rural areas. The program also attracts a diverse population of beneficiaries, with Hispanic, Black, and Asian Americans enrolling at higher rates than Fee-for-Service Medicare.

However, millions of Medicare Advantage beneficiaries are facing coverage disruptions driven by cuts to the program, along with other recent legislative and regulatory changes. According to a recent BMA analysis, individual Medicare Advantage plan offerings will decrease by 6.54% next year, the first decline in more than a decade. These plan closures have forced roughly 2 million Medicare Advantage beneficiaries to find new plans for 2025.

Meanwhile, costs are increasing for millions of seniors enrolled in Medicare Advantage. While Medicare Advantage premiums will remain stable on average, the median out-of-pocket maximum is set to rise by 8%, from $5,000 in 2024 to $5,400 in 2025. Beneficiaries are also experiencing significant cutbacks to benefits such as meal delivery, transportation, and in-home support services. These important benefits help close coverage gaps and keep seniors healthier, particularly vulnerable populations.

Better Medicare Alliance looks forward to working with the Trump administration to ensure stability in Medicare Advantage rates through the 2026 Final Rate Notice and identify opportunities to improve and modernize the program in line with the administration’s health care agenda.

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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  www.bettermedicarealliance.org.