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Medicare Advantage now covers around 35.2 million beneficiaries, according to KFF. That is 55% of Americans who are eligible for Medicare. Beneficiaries are likely drawn in by perks that Medicare doesn't typically offer.
However, major changes to many Medicare Advantage plans in 2027 mean seniors may lose access to benefits they previously enjoyed.
Find out more about these changes to these senior benefits and how they impact you.
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What is Medicare Advantage?
Medicare Advantage is a program made up of private health plans that serves as an alternative to the federal government's traditional Medicare program.
With Medicare Advantage, health insurers contract with the Medicare program to provide health insurance benefits to seniors. In addition to providing all of the benefits covered under Medicare's Parts A and B, they typically also offer Part D prescription drug benefits.
Many seniors find Medicare Advantage to be attractive because it offers additional benefits that a traditional Medicare plan does not. These include:
- Some eye care services
- Some dental services
- Gym memberships
- Out-of-pocket limits on some health care services
- Lower cost-sharing than you could find with traditional Medicare
Such extra perks have made Medicare Advantage enormously popular among seniors. In fact, the Congressional Budget Office forecast that Medicare Advantage's share of the market will surge to 63% by 2034.
However, some insurers offering Medicare Advantage plans are beginning to curb the value of these extra perks. Here are some of the Medicare Advantage benefits that will become less common in 2027.
Over-the-counter item allowances
Over-the-counter benefits are allowances that beneficiaries use to pay for specific over-the-counter goods sold at drugstores. These might include things such as:
- Antihistamines
- Aspirin
- Toothpaste
- Vitamins
However, the number of Medicare Advantage plans with a reported annual limit on over-the-counter items fell from 1,393 in 2026 to 1,261 in 2027, according to PlainMedicare's analysis of CMS plan benefit filings.
Meal benefits
Many Medicare Advantage plans cover the cost of meal delivery services to beneficiaries who have physical health issues or other medical conditions.
Some plans also may provide financial help for seniors when they shop for groceries.
In 2027, the percentage of Medicare Advantage plans offering meal benefits will drop from 59.6% to 48.3%, Livmor reports.
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Remote access technologies
Remote access technologies allow patients to receive medical care without actually visiting a doctor's office. Such care is often referred to as telemedicine or telehealth.
Coverage for such services is becoming less common among Medicare Advantage providers. Plans with telehealth perks are dropping from about 97% in 2026 to 82% in 2027, according to Livmor.
Transportation benefits
Transportation benefits help Medicare Advantage enrollees get to and from places such as doctors' offices and pharmacies at no cost to the patient.
Some plans even extend the perk to cover transportation to grocery stores, gyms, and similar locations.
The perk was never common, but it is becoming even harder to find, dropping from 30% of all plans to 24% of plans in 2026, KFF says.
The perk may become harder to find in 2027, as Medicare Advantage insurers face pressure to reduce costs and scale back supplemental benefits, including transportation assistance.
Why are benefits being curbed?
Why are Medicare Advantage plans cutting back on such perks? Reuters says Medicare Advantage plan providers are reducing benefits to contain rising health care costs.
For example, stricter reimbursement rates and increased use of health care services are impacting insurers' bottom lines.
The Better Medicare Alliance, a research and advocacy organization that promotes Medicare Advantage, says funding cuts and policy changes are responsible for the cutbacks.
How to respond to these changes
The benefit cuts are budget busters for some Medicare Advantage enrollees. At a time when inflation continues to make goods and services more expensive throughout the economy, any added costs are particularly unwelcome among today's seniors.
Many homebound and low-income seniors have come to count on Medicare Advantage perks to help lower their medical costs by hundreds of dollars annually. Seeing those benefits disappear is certain to take a toll on their wallets.
In addition, some large health systems have cut ties with some Medicare Advantage plans. Enrollees in those plans may get a rude shock when they learn their doctors are no longer in the plan's network.
While you cannot control cuts and other changes to benefits, you still have the option to look for a new plan that offers the perks you need.
The Medicare open enrollment period runs from October 15 to December 7. Researching your plan options and choosing coverage that better meets your needs could save you hundreds or even thousands of dollars in 2027.
Bottom line
Today's higher prices across the board have made it more difficult for seniors to maintain their financial fitness. Reduced benefits in Medicare Advantage plans make it even harder to get ahead financially and stay there.
Fortunately, Medicare beneficiaries have many coverage options. Now that open enrollment has begun, review the plans available to you and choose the one that gives you the coverage you need at a price you can afford.
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