By Darren Grubb, Medicare Advantage Majority spokesperson
As health care costs surge nationwide, the Centers for Medicare and Medicaid Services has proposed a nearly flat investment in the Medicare Advantage program for the year to come. For more than 35 million American beneficiaries across the country, that decision would hinder what benefits they receive, increase how much they pay at the pharmacy counter, and prevent them from seeing the doctors and specialists they trust and rely on.
Each year, CMS issues an “Advance Rate Notice,” outlining how much the federal government proposes to invest in Medicare Advantage plans before officially locking in this payment rate in April. For 2027, CMS’ proposed nearly flat investment in the program stands in sharp contrast to reality. Health care costs rose 7.2 percent in 2024, and is projected to have increased another 7.1 percent in 2025. When costs are climbing at that pace, an increased investment of less than one-tenth of one percent in the MA program effectively amounts to a cut. Plans cannot absorb this funding gap without passing costs on to beneficiaries or scaling back benefits – and perhaps both.
We’ve heard from seniors that this is more than a health care issue; it’s an affordability issue. If this rate remains unchanged before Final Rate Notice in early April, seniors will directly feel the impact. Out-of-pocket costs and monthly premiums will rise. Many older Americans, especially those living on fixed incomes, might have to delay or skip needed care because it becomes unaffordable. There will be less flexibility to deliver the supplemental benefits that make Medicare Advantage so
valuable, including dental, vision, hearing, prescription drug support, transportation, and in-home services. Seniors might also see fewer plan options and reduced competition in many communities. Less funding inevitably leads to narrower provider networks, fewer in-network doctors, specialists, and hospitals.
These consequences will hit vulnerable seniors hardest, particularly those in rural areas where access to care is already limited. It’s especially disheartening when comparing these possibilities to the overwhelming support for the program.
Medicare Advantage Majority’s 2025 research shows that 85 percent of enrollees are satisfied with their coverage, citing predictable costs, coordinated care, and benefits they use. Even more, 81 percent of seniors oppose proposals to cut Medicare Advantage funding, with 76 percent saying they would be less likely to support a member of Congress who backs such cuts.
Medicare Advantage has become the backbone of health security for millions of older Americans and caregivers. A nearly flat rate notice ignores rising medical costs and threatens to disrupt the stability seniors need to navigate their later years.
Medicare Advantage Majority is proud to be the voice of the beneficiary and caregiver communities, and we urge everyone who values the program to speak up now. Contact your members of Congress and tell them that Medicare Advantage must be safeguarded and properly invested in nex year. Seniors deserve stability and peace of mind in their Golden Years. It’s time for Washington to deliver.