UnitedHealth Group commissioned Milliman to analyze the value to the federal government of the Medicare Advantage (MA) program relative to traditional Medicare for 2025. This is an update to a prior analysis completed in 2024. In our analysis, we estimated the value of the MA program to the government by quantifying what is provided for each dollar of government spending paid to MA plans, compared to each dollar of government spending for traditional Medicare. We dive into the following topics:

• Government payments per-member-per-month for Traditional Medicare versus MA
• Distribution of government payments for Traditional Medicare versus MA
• Additional MA benefits provided through Part C rebates
• Total government and beneficiary costs for Traditional Medicare versus MA

This report was commissioned by UnitedHealth Group.