UnitedHealth Group commissioned two independent studies from actuarial firm Milliman highlighting Medicare Advantage savings for both the federal government and beneficiaries.
UnitedHealth shared the studies the same day the Senate Judiciary Committee released a report on the insurer’s “aggressive strategies” in Medicare Advantage.
The studies reviewed 2025 costs to assess value. When looking at beneficiaries, the researchers focused on those who qualified for Medicare based on age and did not qualify for income-based coverage.
Here are five takeaways from the studies:
1. Estimated federal payments for Medicare Advantage plans were about 9% less than what the government spent on traditional Medicare. Savings amounted to more than $1,400 per member each year.
2. These plans bring $63 billion in further annual value to enrollees through reduced cost sharing, lower premiums and more robust supplemental benefits.
3. MA total program costs were only 83% of that for traditional Medicare.
4. MA with prescription drug plans had the lowest average annual costs for beneficiaries, both on average and across age ranges.
5. MA beneficiaries spent 53% less in 2025 than comparable beneficiaries in traditional Medicare with a standalone drug plan and Medigap Plan G.
