(The Center Square) – Seniors paid higher Medicare premiums in 2025 due to billions in overpayments to private insurers, a new congressional report shows.
The Joint Economic Committee found Medicare Advantage overpayments increased Medicare Part B premiums by an average of $212 per person in 2025. That added about $13.4 billion in costs.
Most seniors pay Part B premiums out of their Social Security checks. Higher premiums mean less take-home income.
“Let’s be honest about the math, when Medicare Advantage is overpaid, 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,” Chairman David Schweikert said in the report.
The report said Medicare Advantage plans cost more than traditional Medicare, even though lawmakers designed the program to save money.
In 2025, the federal government paid an estimated $76 billion to $84 billion more for Medicare Advantage than it would have under traditional Medicare.
On average, Medicare Advantage costs 17% to 20% more per patient, the report said.
Since Medicare ties premiums to overall program costs, higher spending leads to higher premiums for all seniors, including those not enrolled in Medicare Advantage.
“Today, between aggressive upcoding, questionable quality bonuses, and structural overpayments in Medicare Advantage, seniors who stay in traditional Medicare are effectively subsidizing the system,” Schweikert said. “That’s not sustainable, it’s not fair, and it can be reformed.”
In the past decade, overpayments have added about $82 billion to Part B premiums, according to the report.
A group of Senate Democrats said the findings highlight broader affordability issues.
“At a time when over one-third of adults with health insurance report delaying or skipping care altogether due to cost, six of the largest for-profit health insurance companies in America reported over $71 billion in profits in 2024,” the Insurance Watchdog Coalition said in a statement.
Premiums are expected to keep rising. Part B premiums increased nearly 6% in 2025 and will rise another 10% in 2026.
The committee said higher premiums are reducing seniors’ Social Security benefits.
If trends continue, annual Part B premiums could reach about $5,000 per person by 2035.
