Policy Of Auto-Enrolling Seniors In Medicare Advantage Could Backfire

InnovationHealthcarePolicy Of Auto-Enrolling Seniors In Medicare Advantage Could BackfireByJoshua P. Cohen,Senior Contributor.Forbes contributors publish independent expert analyses and insights. Joshua Cohen is a Boston-based writer who covers health policy.Follow AuthorMay 09, 2026, 02:29pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, during a healthcare affordability event in the Oval Office of the White House in Washington, DC, on Thursday, Apr. 23, 2026. CMS may soon change the default for newly eligible Medicare beneficiaries to Medicare Advantage rather than original Medicare. Photographer: Will Oliver/EPA/Bloomberg© 2026 Bloomberg Finance LPThe Trump administration has said it’s considering auto-enrolling newly eligible beneficiaries into either Medicare Advantage plans or Accountable Care Organizations. Should this policy go ahead, there are some things that could go wrong, including higher costs to the federal government and imposition of more care access restrictions on seniors and disabled folks, such as prior authorization and narrow physician and hospital networks.Chris Klomp, director of Medicare, told STAT News that such auto-enrollment would be better than the current default into fee-for-service, original Medicare. But on multiple levels, this assertion is questionable. In terms of cost, the Medicare Payment Advisory Commission posted a report in March of this year that found that Medicare paid $76 billion more for Medicare Advantage patients in 2025 than it would have if those same patients had been enrolled in original Medicare. The increased payments to Medicare Advantage plans contribute to funding for the supplemental benefits these insurers provide.And while Medicare Advantage plans offer low or even zero premium enrollment fees, their budget-conscious, profit-driven model places limits on ch...