WASHINGTON, DC – Today, the Joint Economic Committee released its latest issue brief entitled The Part B Premium Pass-Through: Medicare Advantage Overpayments Inflate Premiums for All, which finds that Medicare Part B premiums are higher because Medicare Advantage (MA) is overpaid. Additionally, the JEC released its Medicare Affordability Tracker, a monthly update that reports the JEC’s latest estimates of excess Part B premiums attributable to MA overpayments for every state and congressional districts.

Medicare Advantage (“MA” or “Medicare Part C”) is a health insurance program for the elderly and disabled administered by private health insurers, such as United HealthCare, Aetna, and Blue Cross Blue Shield. Congress intended for Medicare Advantage to cost less than government-run, traditional fee-for-service Medicare (TM), however, in 2025 the federal government paid Medicare Advantage insurers an estimated $76 billion to $84 billion more than it would have cost to cover the same beneficiaries in Traditional Medicare.

“Let’s be honest about the math, when Medicare Advantage is overpaid, that money doesn’t just disappear, it shows up in the Medicare Part B premiums seniors pay every month, including those paid by traditional Medicare beneficiaries who are not getting extra benefits,” said Chairman David Schweikert. “If Congress is serious about affordability, fiscal responsibility, and fairness, we must take a hard look at Medicare Advantage and make sure the rules are the same for everyone. Today, between aggressive upcoding, questionable quality bonuses, and structural overpayments in Medicare Advantage, seniors who stay in traditional Medicare are effectively subsidizing the system. That’s not sustainable, it’s not fair, and it can be reformed.”

In 2025, covering a beneficiary in MA cost an estimated 17 to 20 percent more on average than it would have cost in TM. MA overpayments raise Part B spending, and because premiums are set to cover roughly one-quarter of expected costs, premiums for everyone in Part B increase.

1. In this brief, the Joint Economic Committee estimates MA overpayments increased Part B premiums by $212 per enrollee in 2025, totaling $13.4 billion in higher premiums. Since 2016, MA overpayments have added an estimated $82 billion to Part B premiums. TM beneficiaries, who are not enrolled in MA, bore roughly $6 billion of that burden.

2. These higher Part B premiums are negatively impacting seniors by reducing net Social Security benefits. About 85 percent of the added premium burden falls on individuals, with the remainder falling on state and federal taxpayers. For most seniors, Part B premiums are withheld from Social Security checks. Therefore, increases in premiums directly reduce take-home benefits for seniors.

3. These overpayments are also causing seniors to face a dramatic reduction in the affordability of Medicare Part B. By 2035, per-person premiums are projected to double from $2,440 to about $5,000. Of that total, about $450 will be due to overpayments if they continue at the same rate. Aligning MA payments with TM would prevent unnecessary premium growth, increase the affordability of Medicare, and protect net Social Security checks.

Please see the full brief here.

The JEC Medicare Affordability Tracker, with the latest estimates at the state and congressional district level may be viewed here. Medicare enrollment, Medicare Advantage penetration, and income distributions vary across states, leading to a substantial variation in the excess Part B premium burden.

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