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Cost Savings and More Benefits: Tides Shift toward Medicare Advantage, but Slowly

Behavioral economics has taught us that most people select the default choice when presented with an issue that they don’t know well, and the default choice is Original Medicare for seniors. It’s simple to preserve the plan you know year after year, but what about the plan you don’t know?

A recent study explored the extent of awareness for options among Medicare beneficiaries. The data show a knowledge gap for Medicare Advantage. Among respondents enrolled in Original Medicare, 30% stated they were not familiar with Medicare Advantage. This means nearly one in three people 65 or older do not know if there’s a better plan for them.

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