New Report Reveals Medicare Advantage Overpayments Are Draining Social Security Benefits

A new report from the United States Congress Joint Economic Committee (JEC) reveals that Americans are overpaying for Medicare Advantage plans, causing Medicare Part B premiums to rise. What’s more, because of higher Part B premiums, many seniors are experiencing reduced Social Security benefits. To learn more, keep reading. 

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What to know about the new Medicare Advantage overpay report 

Medicare Advantage is a form of health insurance used by 34.1 million Americans. It combines Medicare Part A and B coverage, which includes everything from doctor visits and hospital stays to preventive care and medical procedures. Medicare Advantage is run by private insurance companies, like Blue Cross Blue Shield, United HealthCare and Aetna, and it costs the average user $14 to $34.50 per month, but that rate can vary depending on one’s income and insurer. 

If you’re only enrolled in Medicare Part B, only doctor visits, medical tests, vaccines and screenings are covered. Currently, Part B costs users $202.90 a month—a $17.90 increase from last year. 

One reason for the increase, according to the JEC? Medicare Advantage plans are costing the federal government more.

In the report, the JEC revealed that Medicare Advantage plans cost the government 120 percent more per person than Traditional Medicare. And when Medicare Advantage payments cost more than traditional Medicare, premium prices rise for everyone—even those who aren’t enrolled in Medicare Advantage..

“Let’s be honest about the math, when Medicare Advantage is overpaid [to private insurance companies], that money doesn’t just disappear, it shows up in the Medicare Part B premiums seniors pay every month, including those paid by traditional Medicare beneficiaries who are not getting extra benefits,” JEC Chair David Schweikert said in a statement. “If Congress is serious about affordability, fiscal responsibility and fairness, we must take a hard look at Medicare Advantage and make sure the rules are the same for everyone.” 

“Today, between aggressive upcoding, questionable quality bonuses and structural overpayments in Medicare Advantage, seniors who stay in traditional Medicare are effectively subsidizing the system. That’s not sustainable, it’s not fair and it can be reformed,” he concluded. 

As of publication, Congress and the Centers for Medicare & Medicaid Services have not commented on this report. There also hasn’t been any news on if the report will result in seniors getting any money back from their overpaid premiums. 

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How the increased Medicare costs impact Social Security 

Since Medicare Part B costs normally come out of users’ Social Security checks, the increased premium prices mean that Americans on the government-funded program get less benefit money every month. 

This isn’t exactly a new concern, though. For months,  experts have raised concerns that the 2.8 percent Cost-of-Living Adjustment (COLA) wasn’t going to be enough to cover increased health insurance costs. 

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Back in October 2025, Ramsey Alwin, CEO of the National Council on Aging, saying in a statement, “COLA might reflect the inflation rate, but it is woefully insufficient for older Americans who already have high healthcare costs and are facing even greater increases in their Medicare costs in 2026.” 

“This COLA will not even cover the projected increases in Medicare premiums and deductibles, which are expected to range between 4 percent and 12 percent,” he continued. “Once again, older adults will have to make heart-wrenching decisions about whether to spend their fixed incomes on healthcare, food or housing.”

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