Press Releases
March 6, 2023

Medicare Advantage Offers $2,400 in Annual Cost Savings for Seniors

New analysis finds Medicare Advantage outperforms Fee-for-Service Medicare on cost protections by delivering lower premiums and out-of-pocket spending for Medicare beneficiaries

WASHINGTON – ATI Advisory today released a new independent analysis commissioned by Better Medicare Alliance that found Medicare Advantage beneficiaries report saving more than $2,400 annually on out-of-pocket costs and premiums compared to Fee-for-Service (FFS) Medicare beneficiaries.

With more than 30 million Americans – half the Medicare population – enrolled in Medicare Advantage, these cost protections are especially valuable to low-income beneficiaries. Findings from ATI Advisory show that among low-income Medicare beneficiaries, those enrolled in FFS were twice as likely as Medicare Advantage beneficiaries to experience cost burden from their health care expenses.

“Our data analysis shows that Medicare Advantage continues to provide out-of-pocket and premium cost protections to enrolled beneficiaries,” said Laura Benzing, study lead and analyst at ATI Advisory. “This results in lower rates of cost burden among the Medicare Advantage population when compared to beneficiaries who remain in Traditional fee-for-service.”

“Medicare Advantage makes quality health care affordable for the 30 million beneficiaries enrolled, more than half of whom have low-incomes, with real reported savings and significantly lower rates of cost burdens,” said Mary Beth Donahue, president and CEO of Better Medicare Alliance. “Medicare Advantage has valuable benefits and saves beneficiaries more than $2,400 on average in out-of-pocket costs and premiums. Policymakers must protect Medicare Advantage for the millions of seniors who rely on the high-quality, affordable care provided by Medicare Advantage.”

As more Americans are enrolling in Medicare Advantage, savings have continued to rise year-over-year, with a $400 jump from last year’s reported $2,000 annual savings.

Medicare Advantage’s enrollment growth has led to an increasingly diverse Medicare Advantage beneficiary population with higher enrollment rates among Black and Latino beneficiaries than Fee-for-Service Medicare beneficiaries.

Cost savings are even higher for clinically complex beneficiaries. Patients with three or more chronic conditions enrolled in Medicare Advantage spend on average $2,583 less compared with Fee-For-Service Medicare.

Medicare Advantage beneficiaries report high rates of health care satisfaction and access to care. From ATI’s findings, 95% of enrollees are satisfied with health care quality; 97% are satisfied with ease of getting to the doctor; and 95% report having a usual source of care. 

Read the full analysis from ATI Advisory here.


ATI Advisory is a healthcare research and advisory services firm dedicated to system reform that improves health outcomes and makes care easier for everyone. ATI guides public and private leaders in developing scalable solutions. Its nationally recognized experts apply the highest standards in research and advisory services along with deep expertise to generate new ideas, solve hard problems, and reduce uncertainty in a rapidly changing healthcare landscape. For more information, visit

Better Medicare Alliance is a community of more than 1 million grassroots beneficiaries and 200+ Ally organizations working to improve health care through a strong Medicare Advantage. Learn more at

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