UnitedHealth Group commissioned Milliman to compare average annual beneficiary healthcare costs under various Medicare coverage options available to the Medicare-eligible population in 2025. This report updates a prior analysis completed in 2023. The analysis focuses on beneficiaries originally eligible for Medicare due to age rather than disability or other reasons, and who are not eligible to receive income-based assistance for medical costs.

We compared 2025 annual healthcare costs nationwide and at the state level under a Medicare Advantage and Prescription Drug (MA-PD) plan, Traditional Medicare with standalone Medicare Prescription Drug Plan (PDP), and Traditional Medicare with Medigap Plan G and PDP. These costs are summarized in total as well as separately for cost sharing and premiums under each coverage type for the average aged Medicare beneficiary. We also summarize these costs for the 65- to 70-year-old and 80- to 85-year-old age groups.

This report was commissioned by UnitedHealth Group.