Tuesday, March 12, 2013

Federal government has been overpaying private insurers

Worth reading in its entirety ---

OPINION: taking advantage of Medicare Advantage

Federal government has been overpaying private insurers

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As part of an effort to privatize Medicare, Medicare Advantage plans offer the same benefits as the government-run program — along with a nice, little bonus for private insurance companies. Health insurers then use these profits to incentivize seniors to switch to Medicare Advantage, and as columnist Wendell Potter writes, profits just keep growing.

Sounds great, right? It probably would be, if the government weren't footing the bill for private insurers' participation in Medicare Advantage.

In an attempt to reign in this overpayment, Congress wants to cut Medicare Advantage incentives (for insurance companies, not beneficiaries). As you could imagine, the insurance industry isn't taking it well.




http://www.publicintegrity.org/2013/03/11/12288/opinion-taking-advantage-medicare-advantage?utm_source=publicintegrity&utm_medium=social_media&utm_campaign=facebook

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