Medicare Advantage in the headlines: 7 recent updates 

The federal government is expected to spend $80 billion more on Medicare Advantage beneficiaries in 2025 than if these beneficiaries were enrolled in fee-for-service plans, and UnitedHealth Group scored a major legal victory in a case alleging the insurer overcharged the federal government. 

Here are seven Medicare Advantage updates Becker’s has reported since Feb. 26. 

1. The federal government will spend $84 billion more on Medicare Advantage enrollees than if they were enrolled in fee-for-service plans in 2025, the Medicare Payment and Advisory Commission estimated in its annual report to Congress. Coding intensity and favorable selection account for most of the differences between the two programs.
   
2. Blue Cross and Blue Shield of Massachusetts is the latest insurer to sue CMS over what it says was an unfair calculation of its 2025 Medicare Advantage star ratings. In a lawsuit filed in federal court, the insurer alleged CMS used an unlawful methodology to calculate its ratings, leading to the loss of $35 million in potential revenue.
   
3. Most Medicare Advantage enrollees rate supplemental benefits as important, but less than half report using dental or vision benefits each year, according to a report from the Commonwealth Fund. Here are five numbers to know.
   
4. Alignment Healthcare’s membership grew more than 58% in 2024, driving the Medicare Advantage company to nearly 190,000 members. Becker’s sat down with CEO John Kao to discuss the major growth and how the company plans to reach at least 227,000 members by the end of 2025.
   
5. A court-appointed special master recommended that a more than decade-old lawsuit against UnitedHealth Group be thrown out, a major victory for the insurer. The lawsuit alleges the company overcharged the federal government through Medicare Advantage claims.
   
6. UnitedHealthcare added more than 400,000 Medicare Advantage members during the annual open enrollment period, maintaining its position as the largest MA insurer. Here’s how Medicare Advantage insurers fared during open enrollment.
   
7. Champaign, Ill.-based Health Alliance and Southern Pines, N.C.-based FirstCarolinaCare will no longer offer any insurance plans past 2025, with the exception of Medicare Advantage.