Medicare Advantage vs. Traditional Fee-for-Service Medicare: Different Populations, Different Outcomes

Medicare beneficiaries have been able to choose between two different types of coverage for three decades: one publicly-administered through traditional Medicare Fee-for-Service (FFS) and one privately administered through a Medicare Advantage (MA) plan. MA enrollment has grown dramatically in recent years from only 17% of Medicare beneficiaries in 2000 to more than half of eligible Medicare beneficiaries (54%) in 2024. The rapid growth of MA makes it increasingly important for relevant stakeholders – policymakers, health plans, and patients – to understand how the programs are different.

The report describes two major new findings that cast doubt on prior reports:

1. Individuals who opt for MA have risk scores about 11% higher than those who enroll in FFS.
2. Comparing outcomes among matched cohorts of Medicare enrollees, we find that FFS enrollees would incur 11% lower costs if they switched to MA.

Explore the findings in this white paper.