Report Finds Overpayments in Medicare Advantage Plans
A new Government Accountability Office report shows that Medicare Advantage plans were overpaid by between $1.2 billion and $3.1 billion in 2010. The report found that MA plans tend to classify their beneficiaries as being sicker than those in fee-for-service Medicare plans, thereby triggering higher payments. House Democrats said the federal government could save billions of dollars annually by adjusting the coding formula used to determine MA payments.
- "GAO Report Rekindles Democrats' Call for More Cuts to Medicare Advantage Plans" (Pecquet, "Healthwatch," The Hill, 1/26).
- "Medicare System Overpaid Insurers $3.1 Billion in 2010" (Wayne, Bloomberg, 1/27).
- "Adjust Advantage Plan Pay Rates Even Further: GAO" (Daly, Modern Healthcare, 1/26).