Health Payer Intelligence September 29, 2022
Medicare Advantage plans are overpaid and do not exhibit the quality of care improvements to justify their payments.
The Medicare Advantage program has serious structural problems that lead to overpayment and policymakers must take action on MedPAC’s recommendations in order to create a more cost-effective program, an issue brief from the Urban Institute found.
“MA plans have reduced health care utilization, but although MA was also supposed to generate Medicare program savings, it never has,” the brief explained. “Policy groups such as the Medicare Payment Advisory Commission (MedPAC) have long understood and explained that MA plans are overpaid relative to TM when viewed on comparable terms.”
The brief named problems in all three areas of the Medicare Advantage payment...
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