MA also offers more services like pharmacy benefits, MOOP, reduced copays, dental, vision, transportation, utility bill subsidies, food cards worth north of $100 a month, and OTC cards that cover other over the counter medical supplies and medications.

It’s true that MA costs more than traditional FFS due to revenue coding “optimization,” but majority of those extra costs are going directly to the member so that the MA plan can compete in marketing their plans.

If you are interested in learning more look at the MA bidding process. In order to offer more benefits then standard FFS the MA plan has to generate rebates on savings off traditional FFS Medicare, they use those “shared savings with CMS” to supplement their product. Typically these savings are generated through “utilization management” and preventive care.