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By Kelly Montgomery, About.com Guide to Health Insurance since 2005

Medicare Advantage Costs the Government More Than Traditional Medicare

Tuesday December 12, 2006
A Commonwealth Fund study shows that Medicare Advantage plans cost the government more money than traditional Medicare. Medicare Advantage plans bundle traditional Part A, Part B, and Part D benefits into one comprehensive benefits package for a single monthly premium. These plans have been gaining popularity since the new Part D benefit was launched. However, the Long Island Newsday reports that the government spends an additional $922 per year for each beneficiary enrolled in a Medicare Advantage plan - money which could potentially be better used in different ways to make the Medicare program as a whole more robust.

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