Medicare Advantage woos seniors with plan perks, but a study found they often go unused

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Seniors have embraced Medicare Advantage plans for their free or deeply discounted perks such as eyeglasses, dental coverage, gym memberships, and reimbursements for — not joking — golf clubs and pickleball paddles.

While those plan perks are a pleasure to imagine using, many people never touch them.

“Medicare Advantage enrollees often don't know which supplemental benefits are offered by their plans or how to use them,” Gretchen Jacobson, vice president for Medicare at the Commonwealth Fund, a nonprofit research foundation, told Yahoo Finance.

“Most Medicare Advantage enrollees say that they would like to receive notifications about unused benefits,” she added.

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Eight in 10 consider these benefits to be an important part of their plans, according to a new study from the Commonwealth Fund. Yet, 3 out of 10 beneficiaries reported not using any supplemental benefits in the previous year.

Less than half took advantage of dental, vision, gym memberships, or over-the-counter drug allowance benefits, and fewer than 1 in 10 used benefits like hearing aids, grocery allowance, or meal delivery.

Freebies drive the boom in MA plan enrollment

Roughly 34.4 million people are enrolled in Medicare Advantage plans, which accounts for about 54% of all eligible Medicare beneficiaries, up from 32% a decade ago, according to KFF, a health research nonprofit.

The alternative health insurance program to traditional Medicare for those 65 and older consists of plans run by private insurance companies, such as UnitedHealthcare and Humana, and they’ve skyrocketed in popularity in recent years.

A big part of the allure is all the sparkly extras virtually all of these plans offer that are not included in traditional Medicare, which is administered by the federal government.

To offer these goodies, Medicare Advantage insurers are paid by the federal government to provide the majority of these rebates to the tune of roughly $86 billion this year, according to a 2025 report from the Medicare Payment Advisory Commission (MedPAC), which advises Congress on Medicare policy. That’s up from $21 billion in 2018.

One reason these benefits are not being enjoyed is that enrollees say they don’t really need them. Another concerning factor, though, is that about a quarter of those surveyed said either they don’t know all the benefits their plan offers or they don’t know how to use them, Jacobson said.

“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,” she said. “Our survey found that notifications could be an important step in this direction.”

That almost happened. A new mandate set to kick in next year to address this issue has been tabled. In September, the Centers for Medicare and Medicaid Services notified Medicare Advantage insurers that they will not be required to remind members about unused supplemental benefits for now.

Those notifications, however, would have only been a piece of the puzzle. Even those who know about their benefits find them tricky to use.

Seniors enrolled in Medicare Advantage plans reported that it’s hard to tap the perks, Commonwealth researchers found. That’s because the benefits aren’t convenient, or in the case of, say, a SilverSneakers fitness program membership, they couldn’t find a local gym or fitness center near their homes that offered it. For other free services, members said there wasn’t an in-network provider or vendor in their town providing the rebates.

Shopper alert

Medicare fall enrollment ends on Dec. 7, and if you haven’t reviewed your 2026 coverage, time is nearly up.

Learn more: Medicare open enrollment: How to adjust or add coverage

For 2026, experts say that some Medicare Advantage plans are cutting their dental and vision coverage and raising copays for seeing specialists. So if you signed up for a gym membership through a Medicare Advantage plan, it may not be available next year.

“Supplemental benefits, such as dental, vision, and gym memberships, should be taken into consideration, but only after ensuring that the plan will provide affordable medical coverage and access to the doctors, hospitals, and medications that the person needs,” Louise Norris, health policy analyst for MedicareResources.org, previously told Yahoo Finance.

For the next few days, those who are enrolled can make modifications to their coverage, which goes into effect on Jan. 1. You can switch between original Medicare and Medicare Advantage, change Medicare Advantage plans, and add or switch your Part D prescription drug plan. And possibly add or change to a new Medigap policy.

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Here are resources to help you sort through the plan offerings for the coming year:

• Medicare’s online searchable Plan Finder on the Medicare.gov site allows you to review Medicare Advantage plan options. Nonetheless, enrollees should call their preferred health providers to confirm they will be authorized to treat you next year. Also, before enrolling, call health insurers to confirm details of any 2026 plans.

• The State Health Insurance Assistance Program network (SHIP) provides one-on-one counseling in every state. You can find your local SHIP here.

• The Medicare Rights Center offers a free consumer helpline: 800-333-4114. You can also contact Medicare directly at 800-633-4227 to find Medicare Advantage and Part D Plans in your area and to enroll directly.

• The National Council on Aging has a free helpline (800-794-6559) to assist you in navigating your plan comparisons.

Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky.

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