Seniors can’t afford Washington’s stealth Medicare cuts

Over the last four years, older Americans have been buffeted by increasing costs. Since Covid, consumer prices have increased by more than 25 percent, and in the last three weeks, the conflict in the Middle East has pushed gas prices up by over 35 percent. For millions of retirees living on fixed incomes, these relentless cost hikes can have a large impact on what they can afford.

Now, Washington is gearing up for another Medicare Advantage, or Medicare Part C, fight that could add to the strain on these households: The Centers for Medicare and Medicaid Services has proposed a nearly flat 2027 rate notice update. In an economy where health costs tend to greatly outprice overall inflation (health care costs rose over 7 percent both in 2024 and 2025), a flat Medicare benefit is, in effect, a significant reduction in the benefits provided to seniors.

Medicare Advantage plans are government-approved insurance plans funneled through private companies. The government pays those companies a set amount of money each month based on the number of seniors enrolled. Importantly, Medicare Advantage plans must cover their enrollees using that sum, rather than paying for each service.

The new rate development is problematic because Medicare Advantage has become a cornerstone of health security for older Americans, with more than 35 million seniors relying on the program (including my parents). Many choose it over traditional Medicare plans because it offers predictable out-of-pocket costs and valuable extra........

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