Medicare Advantage Overpayments Raise Costs for All Seniors, Congressional Committee Finds

Over 40 million seniors see Medicare Part B premiums taken from Social Security. Medicare Advantage overpayments directly cut their monthly take-home pay.

Rep. David Schweikert (R-Ariz.) speaks during a hearing of the House Committee on Ways and Means on Capitol Hill, in Washington on Sept. 24, 2024. AP Photo/Mark Schiefelbein, File

Medicare Part B premiums are higher than they should be because the government overpays private insurance companies that run Medicare Advantage plans, according to a March report from the Congress’ Joint Economic Committee.

In an estimate released on March 10, the committee said Medicare Advantage overpayments increased Part B premiums by $212 per enrollee in 2025, totaling $13.4 billion in additional spending.