For many of us in the business community, it has been a welcome change to see commonsense business principles being applied to our bloated and dysfunctional federal government. Every day, we see news articles detailing examples of waste, fraud, and abuse being uncovered. While these stories of government boondoggles make for great headlines, it’s just as crucial that we ask what federal programs are working efficiently, and how we can support them. One such program that deserves greater recognition is Medicare Advantage; unfortunately, however, this program has been under attack for years. In this new era of government efficiency, we should devote resources to strengthening Medicare Advantage and applying this successful framework to future public-private partnerships.
Medicare Advantage has overtaken traditional Medicare as the most popular choice for Medicare-eligible seniors, and for good reason. It offers expanded coverage options for things like vision, hearing, and more, often with no additional premium attached. Some 34 million American seniors are now enrolled in the program. This expansive growth has benefitted not only seniors, but all taxpayers, too; one recent study found that the movement of enrollees toward MA plans has saved the federal government $144 billion over a decade.
Unfortunately, the combination of satisfied enrollees and government savings hasn’t been enough to warm some in Washington on Medicare Advantage. They have long felt threatened by the program’s partnership with private industry, favoring the purely “government run” approach of traditional Medicare. But traditional Medicare is not only less efficient, it is frequently subject to fraud. In fact, the Government Accountability Office found that there were nearly double the number of improper payments to providers in the fee-for-service Medicare program than in Medicare Advantage.
Previously, Medicare Advantage was subjected to years of underfunding, with back-to-back cuts in FY 2024 and 2025. In their final days in office, the prior administration proposed yet another year of underfunding for the program in 2026, and so far, the policy remains unchanged. This means that, absent quick action, seniors on Medicare Advantage will face higher prices next year.
While the program still offers enrollees cost savings, these benefits have already been eroded by years of underfunding. As inflation continues to ravage those on a fixed income, seniors began seeing a median increase of $400 in their out-of-pocket health care costs this year. In addition to this, MA seniors in 19 states witnessed their premiums skyrocket by more than 10% last year. In other words, as beneficial and efficient as this program has been, it is quickly being run into the ground by failed policies.
We need to restore adequate funding for Medicare Advantage so it can remain a shining example of efficiency in government. From a political perspective, it’s especially crucial for Republicans that these policies be reversed before 2026, when MA seniors will no doubt see their costs go up even more. After all, Republicans will be fighting to retain power that year, and failing to address this readily solvable problem would be a massive unforced error ahead of midterm elections. For that reason, I’m calling on Washington, and especially Sen. Ted Budd, to fight for our seniors by restoring full funding to this popular and efficient program. We need more programs that work as well as Medicare Advantage, not fewer. But MA can’t continue the way it’s going, so it’s critical we demand swift change to get things back on the right track.