Increases in Payments to Medicare Advantage Plans Expected

The Centers for Medicare & Medicaid Services has announced that government payments to Medicare Advantage plans in 2025 are expected to increase an average of 3.7 percent from 2024. With the growing popularity of these private plans, it is important that policymakers and consumers understand how Medicare Advantage works, the key issues around cost and value, and ways to ensure plans provide effective, efficient, and equitable care. In Commonwealth Funds’ Medicare Advantage primer, learn more about:

  • the differences between Medicare Advantage and traditional Medicare
  • how the government pays plans
  • why Medicare Advantage costs the government more than traditional Medicare
  • and the extent of choices and competition among plans