Hold Plans to Original Commitment

What a difference two decades can make. When private plans first asked to join Medicare, they said they could provide Medicare’s benefits better and cheaper than the government. They argued for payments that were 5 percent lower than Medicare Fee-for-Service. Under that commitment, Congress agreed to let them participate. Today, Medicare Advantage plans cost taxpayers significantly more than traditional Medicare Fee-for-Service. On average, they’re paid 12 percent more — a 17 percentage-point swing from their “better and cheaper” argument.