Medicare Advantage Plans See Double-Digit Satisfaction Drop as Medical Costs Soar
Member satisfaction with Medicare Advantage (MA) plans has seen a significant decline, according to J.D. Power’s 2025 report, reflecting a broader set of financial and policy pressures now facing the MA landscape. The report reveals a 29-point drop in overall consumer satisfaction, bringing the score to 623 on a 1000-point scale. At the heart of this downturn is a sharp 39-point decrease in member trust, which underscores growing disillusionment with the privatized Medicare model amid rising scrutiny and shifting market dynamics.
One of the central pressures contributing to this erosion in trust is the persistent increase in medical spending. Following the COVID-19 pandemic, many MA enrollees returned to health care settings for delayed services, leading to a surge in utilization. Insurers, including major players like UnitedHealth, have openly acknowledged that they underestimated the pace and scale of this medical cost growth, especially within their MA offerings. In response, companies such as Humana and CVS made strategic market exits and benefit adjustments in an attempt to protect their profit margins. These actions may have further disrupted member experience, compounding frustration and confusion among enrollees.
J.D. Power’s analysis also identified significant declines in satisfaction across core experience metrics. The perception that plan offerings meet member needs dropped by 33 points, while satisfaction with the ease of conducting business with insurers fell by 31 points year-over-year. Particularly concerning is the dissatisfaction among new enrollees: only 38% of first-year members reported that their plan met their expectations, compared to 45% of long-standing enrollees. These newer members encountered barriers such as difficulty locating in-network providers and navigating deductibles and prior authorizations, pain points that may discourage long-term enrollment.
Despite these headwinds, the survey also points to pathways for improvement. Digital engagement emerges as a key differentiator between high- and low-performing plans. Members enrolled in top-rated plans scored 98 points higher in satisfaction with digital services, suggesting that robust digital tools—like easy-to-use member portals and real-time plan updates—can enhance trust and engagement. In fact, 85% of members in high-performing plans used their portal, compared to 76% in lower-rated ones, with over half praising the accessibility of features and tools.
As the MA market contends with volatility, the report concludes that plans investing in comprehensive onboarding, transparency, digital transformation, and broader support services are best positioned to weather the storm. Such strategies not only address core areas of dissatisfaction but also offer a path to rebuilding trust in a program that millions of older Americans depend on for their health care.
Reference
Olsen E. Medicare Advantage headwinds dinging member satisfaction: survey. Healthcare Dive. Published August 20, 2025. Accessed August 22, 2025. https://www.healthcaredive.com/news/medicare-advantage-headwinds-declining-member-satisfaction-jd-power/758078/
Medicare Advantage plan member satisfaction facing headwinds; digital innovation an emerging new solution, J.D. Power finds. Press release. Businesswire. Published on August 19, 2025. Accessed August 22, 2025. https://www.businesswire.com/news/home/20250819910457/en/Medicare-Advantage-Plan-Member-Satisfaction-Facing-Headwinds-Digital-Innovation-an-Emerging-New-Solution-J.D.-Power-Finds
