Higher and Faster Growing Spending Per Medicare Advantage Enrollee Adds to Medicare’s Solvency and Affordability Challenges
This analysis finds that Medicare spending for Medicare Advantage enrollees was $321 higher per person in 2019 than if enrollees had instead been coverage by traditional Medicare, leading to an estimated $7 billion in additional spending in 2019. It also examines the implications of expected growth in Medicare Advantage enrollment and payments per enrollee from 2021 to 2029.
- Trust FUndThe Medicare Hospital Insurance (HI) trust fund is projected to be depleted in 2026. The projected deficit amounts to $517 billion between 2026 and 2031. Our FAQs answer key questions about Medicare financing and trust fund solvency. In the 30 years prior to 2021, the trust fund has come within five years of depletion only twice – in 1996 and 1997. To date, Congress has never allowed the trust fund to be fully depleted.
- Rx DrugsWe analyzed the drug industry’s claims that a drug price negotiation proposal in the Build Back Better act would allow the federal government to decide which medicines people on Medicare can get. Those claims are not accurate. The proposal would allow the federal government to negotiate prices with drug companies for some high-cost drugs. It would not let the government restrict access to medicines, but it may result in fewer drugs coming to market.
Cost-Related Problems Are Higher Among Privately-Insured Adults 50 to 64 than Medicare-Covered Adults 65 and OlderA somewhat larger share of privately-insured adults ages 50 to 64 (16%) than Medicare-covered adults ages 65+ (11%) report having cost-related problems, defined as delaying or forgoing medical care due to costs or having problems paying medical bills.
- Web BriefingOn December 8, we hosted a web briefing featuring KFF and other health policy experts explaining the key prescription drug provisions in the House-passed budget reconciliation bill. We also examined public support for prescription drug pricing reform and discussed prospects for the bill’s passage in the Senate.
- BasicsMedicare plays a key role in providing health care and financial security to more than 60 million older people and younger people with disabilities.
- Supplemental CoverageThis data note explores sources of coverage among beneficiaries in Medicare and the demographic characteristics of people with different types of coverage, based on data from the 2018 Medicare Current Beneficiary Survey.
- DisparitiesThis chart collection examines the characteristics, experiences, and outcomes of the Medicare population by race and ethnicity. It includes data to describe demographics, health status and disease prevalence, health coverage, access to care and service utilization, and health outcomes, including data pertaining to disparities related to COVID-19.
- medicare part dThe Medicare Part D program provides an outpatient prescription drug benefit to older adults and people with long-term disabilities in Medicare who enroll in private plans, including stand-alone prescription drug plans (PDPs) to supplement traditional Medicare and Medicare Advantage prescription drug plans (MA-PDs) that include drug coverage and other Medicare-covered benefits.
- quizTake this quiz to find out how much you know about Medicare, the people it serves, the benefits it covers, and its financial status.