Miles Bennett
Medicare is a US government program that funds healthcare services for the elderly and disabled. However, some insurance companies have been offering Medicare Advantage plans that include non-medical perks like golf equipment and ski passes. These plans are run by commercial health insurance companies and offer enticing extras like flex cards that can be used to purchase golf-related items. While these perks may encourage a healthy lifestyle, they have also led to concerns about the cost and structure of Medicare payments, with some arguing that the program overpays for certain beneficiaries while underpaying for others.
| Characteristics | Values |
|---|---|
| What is Medicare? | Funding for health-care services for elderly and disabled Americans |
| What is Medicare Advantage? | Run by commercial health insurance companies, it's a cost-saving alternative to traditional Medicare |
| Does Medicare pay for golf? | Yes, Medicare Advantage plans offer non-medical supplemental benefits such as golf equipment, golf lessons, and greens fees |
| Why does Medicare Advantage pay for golf? | To encourage relatively healthy enrollees to sign up |
| How does Medicare Advantage pay for golf? | Through "flex cards", which can be loaded with cash and used like credit cards |
| How much does Medicare Advantage pay for golf? | The annual allowance ranges from $360 to $1200, while the quarterly allowance ranges from $90 to $300 |
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What You'll Learn
Medicare Advantage plans
Medicare is a US government program that funds healthcare services for the elderly and disabled. Medicare Advantage, also known as Part C, is an alternative to traditional Medicare, run by commercial health insurance companies. It is intended to be a cost-saving measure, but imperfect categorization of medical needs has led to overpayments to plans, which have left taxpayers on the hook for an additional $1 trillion over the next decade.
These plans are structured to offer costly supplemental benefits that are disproportionately attractive to physically active enrollees. However, critics argue that purchasing golf clubs for Medicare beneficiaries with diabetes will not reduce their risk of costly hospitalizations.
In 2024, 10 million Medicare beneficiaries were entitled to non-medical "supplemental benefits" as part of their coverage. This year, 48% of Medicare Advantage plans will feature "flex cards," offering an average benefit of $966 to enrollees. These cards can be loaded with cash value and used like a credit card.
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Golf club reimbursement
The Aetna Medicare Gold Advantage Plan, for example, includes golf club reimbursement as of 2024. Clever Care's Medicare Advantage plan also covers greens fees at golf courses in Southern California, and other plans offer similar benefits. These supplemental benefits are intended to encourage relatively healthy individuals to enroll in Medicare Advantage plans.
However, it's important to note that original Medicare does not typically cover gym memberships or fitness programs, and these may be included in the extra coverage offered by Medicare Advantage Plans or Medigap plans. Medigap plans are supplemental private plans that fill the gaps in traditional Medicare, and they may cover vision, dental, and drug costs.
While these additional benefits may provide marketing value and encourage physical activity, they have also led to criticism due to the increasing costs for taxpayers. The Medicare Payment Advisory Commission notes that the imperfect categorization of medical needs has resulted in overpayments and underpayments, contributing to the rising costs of Medicare Advantage plans.
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Non-medical perks
Medicare is a program that funds healthcare services for the elderly and disabled in the United States. However, Medicare Advantage, a program that pays private insurers to manage seniors' health coverage, has come under scrutiny for its poorly structured payments, which have led to non-medical perks being funded by taxpayer dollars. These perks include golf equipment and fees, ski passes, pet supplies, and even grocery cards and gas money.
One example of a Medicare Advantage plan that covers golf-related expenses is Clever Care. Their plan pays for greens fees at several golf courses in Southern California. Another company offering similar benefits is Sonder Health Plans, which covers golf lessons and physical club memberships as part of its Medicare Advantage plans. These extras are marketed as tools for improving the mental and physical health of beneficiaries.
Medicare Advantage plans are run by commercial health insurance companies and offer enticing extras to attract relatively healthy enrollees. These plans have become increasingly popular, with 10 million beneficiaries in 2024, and many plans now feature flex cards, which offer a cash benefit that can be used for various expenses. While these perks may provide some value to beneficiaries, they have also contributed to significant overpayments, with Medicare payments to Medicare Advantage plans rising from 112% to 120% of what the program would have spent on direct medical services.
It is important to note that traditional Medicare does not typically cover these types of non-medical perks. Original Medicare does not cover gym memberships or fitness programs, and beneficiaries pay 100% for these non-covered services. However, Medicare Advantage plans, Medigap plans, and other supplementary insurance options can provide additional coverage for expenses beyond what is included in traditional Medicare. These plans may include coverage for vision, dental, and drug costs, as well as the non-medical perks that have been the subject of recent debates.
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Supplemental benefits
Medicare is a program that funds healthcare services for elderly and disabled Americans. However, there is a separate program called Medicare Advantage, which is run by commercial health insurance companies and pays private insurers to manage seniors' health coverage. Poorly structured payments for Medicare Advantage have led to taxpayer dollars being used for non-medical supplemental benefits, such as golf equipment and golf club reimbursement, ski passes, pet supplies, fishing licenses, social club memberships, and physical club memberships. These perks are offered to encourage relatively healthy individuals to enroll in plans.
Medicare Advantage plans offer flex cards, loaded with a cash value by the insurance company and used like a credit card, which can be used to pay for golf-related expenses. The annual allowance for these cards ranges from $360 to $1200, while the quarterly allowance ranges from $90 to $300.
In 2024, 10 million Medicare beneficiaries were entitled to non-medical "supplemental benefits" as part of their coverage. This year, 48% of Medicare Advantage plans will feature "flex cards," offering an average benefit of $966 to enrollees.
It is important to note that traditional Medicare does not cover these supplemental benefits, and seniors may have to pay a lifelong penalty if they choose minimal coverage initially and then decide to switch to a Medicare Advantage plan later.
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Medicare payments
Medicare is a US government program that funds healthcare services for the elderly and disabled. However, there is a separate program called Medicare Advantage, which is run by commercial health insurance companies and pays private insurers to manage seniors' health coverage. Poorly structured payments for Medicare Advantage have led to taxpayer dollars being used for non-medical perks like golf equipment and golf club memberships, ski passes, and pet supplies. Medicare Advantage plans are incentivized to offer these costly supplemental benefits because of "coding and selection" effects—the program currently overpays for beneficiaries with low medical costs and underpays for those with high medical costs.
Some examples of Medicare Advantage plans that offer golf-related perks include Clever Care, which pays greens fees at certain golf clubs in Southern California, and Sonder Health Plans, which offers Medicare Advantage plans that pay for golf lessons. Aetna also offers a Medicare Gold Advantage Plan that includes golf club reimbursement. Humana is another example of a Medicare Advantage plan that offers non-medical supplemental benefits, advertising coverage for pet food, pet toys, kitty litter, and flea shampoo.
While these extra benefits may be attractive to potential enrollees, they can also be problematic. The Medicare Payment Advisory Commission has noted that the imperfect categorization of medical needs means that Medicare Advantage plans are incentivized to offer costly supplemental benefits that are disproportionately attractive to physically active enrollees. For example, purchasing new golf clubs for Medicare beneficiaries with diabetes will not reduce their risk of costly hospitalizations, and paying for ski passes may even increase the risk.
It is worth noting that traditional Medicare does not typically cover these types of non-medical perks. Traditional Medicare consists of Part A, which covers hospital stays, and Part B, which covers 80% of doctor visits. These plans usually do not pay for drugs, although seniors can add Part D drug coverage. Seniors can also choose to add supplemental private Medigap plans to fill in the gaps in traditional Medicare coverage, but these plans may not always be affordable, especially if they are purchased later on.
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Frequently asked questions
Original Medicare does not cover golf. However, Medicare Advantage plans may offer golf as an extra benefit.
Medicare Advantage is a program that pays private insurers to manage seniors' health coverage. It is intended to be a cost-saving alternative to traditional Medicare.
Some Medicare Advantage plans offer flex cards with a cash value that can be used for various purposes, including golf. Other common benefits include ski passes, pet supplies, and hairstyling services.
You can sign up for a Medicare Advantage plan when you first become eligible for Medicare, which is usually when you turn 65. If you choose minimal coverage at first and want to add Medicare Advantage later, you may have to pay a penalty.
Yes, you can purchase supplemental private plans called Medigap plans that fill in the gaps of traditional Medicare. These plans may cover things like drugs, vision, and dental care.
