"A beneficiary’s estimated health care spending is a key factor in the choice between MA and FFS coverage, especially since half of Medicare beneficiaries live on fixed annual incomes below $29,650," UnitedHealth's researchers wrote in the report.

The study also breaks down what a beneficiary would typically pay for premiums versus out-of-pocket costs in each type of coverage. For people enrolled in traditional Medicare with a drug plan, they spent, on average, $2,186 per year on premiums and $3,174 out of pocket.

For those with additional Medigap coverage, premiums cost $4,392 per year on average while $1,599 was spent out of pocket.

Medicare Advantage beneficiaries, by comparison, spent on average $2,013 on premiums per year and $1,545 out of pocket, according to the study.

The study also found that Medicare beneficiaries across all age categories spent between $1,541 and $2,234 less on average than 65-year-olds in traditional Medicare and between $2,259 and $2,701 less on average than 85-year-olds in fee for service.

Source: https://www.fiercehealthcare.com/payer/unitedhealth-study-medicare-advantage-members-spend-40-less-per-year-than-fee-for-service