A recent study from the Commonwealth Fund revealed that many Medicare Advantage enrollees are not using the supplemental benefits their plans offer, despite viewing them as an important part of their coverage.
The survey showed that although 80% of Medicare Advantage members consider perks such as vision and dental coverage, gym memberships, and over-the-counter drug allowances crucial, nearly 30% reported using none of these benefits in the previous year. Fewer than half took advantage of commonly included features like dental or vision care, and less than 10% used offerings such as grocery allowances or hearing aids.
Medicare Advantage, a privately-run alternative to traditional Medicare for individuals aged 65 and older, has grown substantially in popularity over the last decade. According to health research nonprofit KFF, about 34.4 million people—54% of eligible Medicare beneficiaries—are now enrolled, up from 32% ten years ago. The plans are operated by insurers such as UnitedHealthcare and Humana and are largely funded through federal payments.
Gretchen Jacobson, vice president for Medicare at the Commonwealth Fund, told Yahoo Finance, “Medicare Advantage enrollees often don’t know which supplemental benefits are offered by their plans or how to use them.” She added, “Most Medicare Advantage enrollees say that they would like to receive notifications about unused benefits.”
These extra benefits are funded in part by approximately $86 billion in government rebates this year, a significant rise from $21 billion in 2018, according to a 2025 report from the Medicare Payment Advisory Commission (MedPAC). The rapid growth in spending has raised concerns among policymakers and advocates that the money may not be achieving its intended impacts.
“Given the extensive federal funds that are provided for these benefits, it’s important for both Medicare beneficiaries and the federal government that Medicare Advantage enrollees know what their plan has to offer and how they can use them,” Jacobson said. “Our survey found that notifications could be an important step in this direction.”
