JEC: Medicare Reform Would Save Seniors Nearly $12,000 in Part B Premiums. H.R. 3467 would lower premiums by more than $35 a month in 2033 while reducing federal spending by an estimated $1.8 trillion over 10 years

WASHINGTON — Today, the Joint Economic Committee released a new issue brief entitled The Premium Payoff: Medicare Advantage Reform Can Lower Costs for Seniors finds that reforms to Medicare Advantage included in the H.R. 3467 would lower Medicare Part B premiums and allow seniors to keep more of their Social Security benefits.

Part B premiums have risen from just 3.6 percent of the average retired worker’s Social Security benefit when Medicare began in 1966 to nearly 10 percent today. JEC estimates reforms outlined in H.R. 3467 would reduce the standard Part B premium by approximately $430 in 2033 and save a beneficiary entering Medicare in 2027 nearly $12,000 over 20 years.

“Reforming Medicare Advantage allows us to protect seniors and the benefits they have earned while strengthening Medicare’s future,” said JEC Chairman David Schweikert. “Making these necessary reforms would cut federal spending by $1.8 trillion over 10 years while lowering Medicare premiums so seniors can keep more of their hard-earned money. With a soaring national debt and continued affordability challenges, we have a responsibility to lower costs, reduce taxpayer spending, and put Medicare on a more fiscally responsible path. I ask my colleagues to join me in making these critical reforms to protect seniors today and preserve Medicare for generations to come.”

Key findings from the brief include:

Part B premiums are consuming a growing share of Social Security benefits. When Medicare began in 1966, the standard Part B premium equaled about 3.6 percent of the average retired worker’s Social Security benefit. In 2026, it consumes nearly 10 percent.
Medicare Advantage reform would lower Part B premiums. JEC estimates that implementing reforms outlined in H.R. 3467 would reduce the annual standard Part B premium by about $430 in 2033, saving beneficiaries more than $35 per month.
The savings accumulate substantially over retirement. For a beneficiary entering Medicare in 2027, projected standard Part B premiums over the following 20 years total about $96,000 under current law. If the policies outlined in H.R. 3467 were in place over that period, cumulative premiums would fall by nearly $12,000, or about 12 percent.
Lower Part B premiums would provide the greatest relative relief to lower-benefit retirees. For premium-paying beneficiaries near the lower end of the benefit distribution, the estimated $430 annual savings would equal nearly one-third of a monthly Social Security check.

JEC previously estimated that H.R. 3467 would reduce federal spending by approximately $1.8 trillion over 10 years. Because beneficiary premiums are tied to Part B spending, reforms that reduce those costs also lower premiums, providing savings for taxpayers and Medicare beneficiaries alike.

Read the full brief here.

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