During his campaign, Donald Trump promised to protect Medicare. After Joe Biden’s Medicare Advantage, President Trump had his work cut out for him.
For two years, the Biden administration authorized steep cuts to Medicare Advantage, the most popular Medicare choice today, which serves more than 34 million. Meanwhile, medical costs and use rates were rising, putting more pressure on the program. The result has been predictably disastrous: 2 million seniors have been forced to find new Medicare Advantage plans for this year thanks to widespread plan closures. Millions more have faced higher costs and reduced benefits. Many on fixed incomes were already struggling to make ends meet — but instead of supporting America’s seniors when they needed it most, Biden kicked them while they were down.
The good news is that Trump can fix Medicare Advantage and can start immediately.
On its way out the door, the Biden administration released a draft of the annual payment rate for Medicare Advantage, known as the Advance Notice. It proposed only a modest bump, not even close to enough to reverse the damage of the past few years.
Trump will have the final say. His administration can keep its promise to protect Medicare Advantage by releasing a strong final rate, ensuring the cost of seniors’ healthcare won’t increase.
This one simple step would go a long way toward making America healthy again. Medicare Advantage is transforming healthcare for seniors by prioritizing preventive care, chronic disease management and behavioral health. By keeping seniors healthier and out of hospitals, Medicare Advantage has saved taxpayers$144 billion. It’s a rare example of a government program that has actually worked.
Medicare Advantage is also a testament to the success of market-driven healthcare. Unlike traditional fee-for-service Medicare, which is plagued by inefficiencies and fraud, Medicare Advantage harnesses private-sector competition to deliver superior care at lower costs. Seniors enrolled in Medicare Advantage spend, on average, $2,541 less annually than those enrolled in fee-for-service Medicare, even while Medicare Advantage provides critical benefits that original Medicare does not, including vision, dental, hearing and wellness programs.
Trump is looking to eliminate waste, fraud and abuse in the federal government and ensure that Americans get the maximum return on their tax dollars. It’s an important goal, and Medicare Advantage is a perfect example of how the federal government can work better and more efficiently.
Unlike fee-for-service Medicare, which essentially operates on an honor system, Medicare Advantage incorporates multiple layers of transparency and accountability to ensure payments align with health needs. With a model rooted in competition and innovation, Medicare Advantage plans are incentivized to provide more effective care at a lower cost.
When plans compete, we all win. This is the kind of program our government should be doubling down on for the future.
Trump can lead the way in supporting Medicare Advantage, but congressional Republicans have a vital role. As the private alternative to fee-for-service Medicare, Medicare Advantage aligns with conservative principles of choice, competition and fiscal responsibility. It is also the clear choice for a majority of Medicare-eligible seniors. By working to reverse reckless cuts and standing up for Medicare Advantage, Republicans can make it clear that they are fighting for affordable health care.
This is a crucial moment with the Advance Notice before the administration and spending discussions on Capitol Hill. Policymakers must ensure sufficient funding for Medicare Advantage and fight regulatory overreach that threatens the program’s future. Failure to act will push more seniors to the financial brink, further jeopardizing their health and well-being.
The stakes are too high to ignore; now is the time to act decisively and ensure this vital program survives and thrives for future generations.
