Choosing the right Medicare Advantage coverage is one of the more complicated and consequential things retirees can do. So as satisfaction with the options declines, advisors have an opportunity to show their value and strengthen client relationships.
Customer satisfaction with Medicare Advantage dropped for the second year in a row, according to JD Power's
High-performing plans, however, received good marks on effective communication and new member onboarding. Thirty-four percent of new members who reported understanding their coverage also reported feeling they're prepared by their insurer for the unexpected, and 29% reported feeling their needs are anticipated by their insurer. Both of those percentages were lower among new members who said they didn't understand their coverage.
While scores varied by insurance company, the lowest average overall customer satisfaction index, 593, was in New York, and the next lowest were Kentucky, 606, and Illinois, 607. The highest averages were in Tennessee, 647, and Pennsylvania, 646.
The 2026 study included 14,559 Medicare Advantage plan members and covered only 12 states, though there are takeaways for financial advisors guiding their clients through health insurance decisions.
"Trust doesn't exist in a vacuum; it is built through the various touchpoints consumers have with their plan and, importantly, through how well they understand their coverage," Heather Schreiber, founder of Atlanta-based HLS Retirement Consulting, wrote in an email to Financial Planning.
As part of ongoing conversations about retirement, "advisors should ask whether coverage has been reviewed, whether healthcare needs or costs have changed, and whether those costs still fit within the client's long-term income plan," Schreiber added.
Although Medicare might seem like one factor, coverage decisions are critical for the broader ripple effects they can have on retirement.
"Two of the most consequential decisions people make as they enter retirement are when to claim Social Security and how to obtain and pay for healthcare," Schreiber wrote. "Both can significantly affect long-term income sustainability, yet they are sometimes treated as boxes to check rather than decisions that need to be coordinated with the rest of the retirement plan."
Alternatives to Medicare Advantage
As suggested by the declining satisfaction rates, Medicare Advantage might not be the best option for high net worth individuals.
"The Venn diagram of people that work with a financial advisor, people that have engaged in financial planning, and people that own a Medicare Advantage plan — that overlap of people that fit both of those isn't really a huge part of my business and what I see," Matthew Collins, founder of Truce Benefits and a health insurance advisor for individuals and business owners, said in an interview. Wealthy individuals tend to prefer original Medicare with a supplement, he said.
Medicare supplement customers are seeing higher premiums due to a pattern in the marketplace that Collins described: Private insurance companies are ending Medicare Advantage plans because they aren't profitable, leading enrollees with illnesses to shop for Medicare supplement plans and start filing claims right away. Ultimately, those Medicare supplement plans are raising premiums since the pool has become less healthy.
"The craziest circle is that sometimes, when seniors are faced with these very high Medicare supplement prices, they will leave, and they will go to a Medicare Advantage plan," he added.
As the market is in flux, it would be wise for retirees to think through their decisions, and advisors can support them in that. Decisions can have ripple effects down the line, such as not signing up for Medicare when first becoming eligible, which can mean higher premiums for years.
"They should be involved in their clients' lives enough to make sure they're not making a bad decision or a snap decision that they can't fix later," Collins said. "That would be my suggestion for advisors. Just know enough."
