The following testimony was given to the U.S. House Committee on Ways and Means, Joint Health and Oversight Subcommittees on July 22, 2025. Video of the hearing is available here.
Matthew Fiedler testified at a hearing held by the Subcommittees on Health and Oversight of the House Committee on Ways and Means to discuss the present and future of Medicare Advantage (MA). His testimony made five main points on MA payment reform:
- Covering a beneficiary under MA costs an estimated 20% more than covering the same person under traditional Medicare, generating $84 billion in additional payments in 2025.
- Paying an MA plan an additional dollar delivers much less than a dollar of value to enrollees.
- Reforming MA payment could free up resources to meet other needs, allow policymakers to enhance Medicare’s benefits, or both.
- A sensible goal for MA payment reform would be to align payments to MA plans with the cost of covering comparable enrollees under traditional Medicare.
- The opportunities presented by MA payment reform show that it is possible to sharply reduce federal health care spending without increasing uninsurance.
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Acknowledgements and disclosures
The author would like to thank Loren Adler, Aviva Aron-Dine, and Richard Frank for comments on an earlier draft. The author also thanks Samuel Peterson for assistance with fact-checking this testimony and Rasa Siniakovas for editorial and publishing assistance.
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TestimonyMatthew Fiedler’s testimony on Medicare Advantage
July 23, 2025