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, Healthcare Dive reports. Read more.
