We need better data to measure the value of Medicare Advantage supplemental benefits

Widespread availability of supplemental benefits that are popular among beneficiaries is a major reason for the sharp increase in Medicare Advantage enrollment in recent years. Medicare Advantage plans typically offer reduced cost sharing and benefits not covered under traditional Medicare, such as vision, fitness, hearing, and dental, often for no additional premium. Medicare Advantage insurers promote supplemental benefits in television ads and other marketing materials, knowing that beneficiaries are looking to lower their out-of-pocket spending on health care. Yet little information is available to document the value of these benefits to beneficiaries or taxpayers, and the extent to which they impact health outcomes.