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Medicare Advantage lures seniors with plan benefits, but study finds they’re often not used

Seniors embrace Medicare Advantage plans for their free or deeply discounted benefits for eyeglasses, dental coverage, gym memberships, and golf clubs and pickleball paddles—no kidding.

While it’s nice to imagine using those plan benefits, many people never touch them.

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

“Many Medicare Advantage enrollees say they want to receive notifications about unused benefits,” he added.

According to a new study by the Commonwealth Fund, eight in 10 consider these benefits an important part of their planning. However, 3 out of 10 beneficiaries reported not using any supplementary benefits in the previous year.

Fewer than half took advantage of dental, vision, gym membership, or over-the-counter drug benefit benefits, and less than 1 in 10 used benefits such as hearing aids, grocery allowances, or meal delivery.

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

Alternative health insurance programs to traditional Medicare for those 65 and older include plans run by private insurance companies such as UnitedHealthcare and Humana, and they have grown in popularity in recent years.

A big part of the attraction is all the sparkly extras almost all of these plans offer that aren’t included in traditional Medicare, which is administered by the federal government.

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

One reason these benefits aren’t being taken up is that enrollees say they don’t really need them. Another factor of concern, however, is that a quarter of those surveyed said they either don’t know all the benefits their plan offers or don’t know how to use them, Jacobson said.

“Given the extensive federal funds provided for these benefits, it is 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 it,” she said. “Our survey found that notifications can be an important step in this direction.”

That almost happened. A new mandate set to kick in next year has been introduced to address the issue. In September, the Centers for Medicare and Medicaid Services notified Medicare Advantage insurers that they no longer need to remind members about unused supplemental benefits for now.

Those notifications, however, would be only one piece of the puzzle. Even those who know about their benefits find it difficult to use them.

Seniors enrolled in Medicare Advantage plans report that it is difficult to tap benefits, Commonwealth researchers found. That’s because the benefits aren’t convenient, or in the case of a SilverSneakers fitness program membership, they couldn’t find a local gym or fitness center near their home that offered it. For other free services, subscribers said there was no in-network provider or vendor in their city.

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

Learn more: Medicare Open Enrollment: How to Adjust or Add Coverage

For 2026, experts say some Medicare Advantage plans are cutting back on 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 considered, but only after ensuring that the plan provides affordable medical coverage and access to the doctors, hospitals and drugs that individuals need,” Louis Norris, health policy analyst at MedicareResources.org, previously told Yahoo Finance.

For the next few days, enrollees can make changes to their coverage, which takes effect on January 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.

Have a question about retirement? Personal finance? Is there anything related to career? Click here to note Kerry Hannon.

Here are resources to help you sort through planning proposals for the coming year:

Medicare’s online searchable plan finder on the Medicare.gov site allows you to review Medicare Advantage plan options. However, enrollees should call their preferred health providers to confirm that 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) offers one-on-one counseling in each state. You can find your local ship here.
The Center for Medicare Rights offers a toll-free consumer helpline: 800-333-4114. You can contact Medicare directly at 800-633-4227 to find Medicare Advantage and Part D plans in your area and enroll directly.
The National Council on Aging has a toll-free helpline (800-794-6559) to help you navigate your plan comparisons.

whaterry Hannon is a senior columnist at Yahoo Finance. He is a career and retirement strategist and author of 14 books, including “Retirement Bites: Gen X’s Guide to Securing Your Financial Future,“”In Control at 50+: How to Succeed in the New World of Work,” and “You’re never too old to be rich.” Follow her Bluesky.

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