Healthcare DIVE June 14, 2023
Dive Brief:
- Overpayments to Medicare Advantage plans could reach more than $75 billion this year — almost triple prior estimates — highlighting the need for payment reform to avoid overtaxing the Medicare system, according to researchers from the USC Schaeffer Center for Health Policy and Economics.
- That’s a result of favorable selection, as millions of beneficiaries who switch from traditional fee-for-service Medicare to MA have lower spending than the beneficiaries who stay, researchers said.
- USC Schaeffer argued for two potential ways to improve rate setting: unlinking MA payments from fee-for-service spending or enacting a system for competitive bidding by MA plans.
Dive Insight:
More seniors are choosing MA plans, where private insurers contract with the government...