Navigation Links
Extra payments to Medicare Advantage plans to total $8.5 billion in 2008
Date:9/4/2008

New York, NY, September 5, 2008Private Medicare Advantage (MA) plans will be paid an average 12.4 percent more per enrollee in 2008 compared to what the same enrollee would have cost in the traditional Medicare fee-for-service program, according to a new report from The Commonwealth Fund. Even if the payment reductions to MA plans mandated by the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) scheduled to take effect beginning in 2010 had been fully in place in 2008, MA plans still would have been paid 10.6 percent more than expected fee-for-service costs.

In the report, Brian Biles, professor of health policy at George Washington University, and colleagues estimate that extra payments to MA plans will amount to $986 over fee-for-service costs for each of about 8.7 million Medicare beneficiaries enrolled in Medicare Advantage plans, for a total of more than $8.5 billion in 2008 up from $3.9 billion in extra payments, or $795 per MA enrollee in 2004. Extra payments to MA plans between 2004 and 2008 will total nearly $33 billion.

The bulk of these extra payments were mandated by the Medicare Modernization Act of 2003, which was intended to expand the role of private plans in Medicare in an effort to reduce growth in Medicare spending. Since 2004, MA plan enrollment has increased from 4.8 million to the current 8.7 million.

"The legislation passed this year only partially addresses the overpayment problem in Medicare Advantage, and private plans still substantially raise the cost of serving Medicare beneficiaries," said Commonwealth Fund President Karen Davis. "Policymakers should carefully examine whether extra payments to Medicare Advantage plans are the best use of dollars for the beneficiaries the program is designed to serve."

The authors of the report, The Continuing Cost of Privatization: Extra Payments to Medicare Advantage Plans in 2008, note that eliminating extra payments to private plans could be used for other purposes, such as offsetting the costs of Medicare policy improvements, which may include: slowing the increase in the Part B premium that Medicare beneficiaries pay, increasing eligibility for low-income subsidies in Medicare, or improving benefits and financial security for all beneficiaries.

"Medicare Advantage was intended to save the program money through the use of private plans. However, extra payments to these plans combined with rapidly increasing enrollment, has resulted in $33 billion in additional spending over the past five years," said Biles. "These overpayments put pressure on both Medicare and the federal budget, drain resources from other, potentially more productive, uses, and dilute the incentive for Medicare Advantage plan efficiency which was one of the original reasons for including a private plan option in Medicare."


'/>"/>

Contact: Mary Mahon
mm@cmwf.org
212-606-3853
Commonwealth Fund
Source:Eurekalert

Related medicine news :

1. New study: Pine bark extract reduces ADHD symptoms in children
2. IMA South American Extravaganza Dinner to Honor Coachella Valley Doctor
3. MassMutual Agent Honored by Insurance Industry for Extraordinary Service to Client
4. Wrigleys Orbit(R), Extra(R) and Eclipse(R) Sugar-Free Chewing Gums Awarded American Dental Associations Seal of Acceptance
5. NBME Appeals Massachusetts Judges Reversal of Lower Court in Suit for Extra Break Time During Medical Licensing Exam
6. Missouri House Recognizes Extraordinary Efforts Supporting National Guard Families
7. Portal vein thrombosis is common in extraportal vein obstruction
8. New study: pine bark extract boosts nitric oxide production
9. Markel Expands Classes for Contagion Risk with OUTBREAK(R) Extra Expense Coverage
10. Broccoli sprout-derived extract protects against ultraviolet radiation
11. Extracts of catfish caught in polluted waters cause breast cancer cells to multiply
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... ... October 13, 2017 , ... Apple Rehab Shelton Lakes , ... mock evacuation of the facility as part of a disaster drill on October 3rd. ... EMS and Shelton City Emergency Manager, as well as the Connecticut Long Term ...
(Date:10/13/2017)... ... , ... Yisrayl Hawkins, Pastor and Overseer at The House of Yahweh, has ... least understood books in the Holy Scriptures, Revelation. The Book of Revelation paints a ... centuries. Many have tossed it off as mere rubbish, but Yisrayl Hawkins says that ...
(Date:10/12/2017)... WILMINGTON, Del. (PRWEB) , ... October 12, 2017 ... ... technology and advisory services for healthcare compliance program management, will showcase a range ... and National Association for Assisted Living (NCAL) Convention and Expo to be held ...
(Date:10/12/2017)... ... October 12, 2017 , ... The American College of Medical Informatics (ACMI) ... FACMI, during the Opening Session of AMIA’s Annual Symposium in Washington, D.C. AMIA’s ... Morris F. Collen, a pioneer in the field of medical informatics, this prestigious award ...
(Date:10/12/2017)... ... October 12, 2017 , ... Leading pediatric oncology experts at ... for the 49th Congress of the International Society of Paediatric Oncology (SIOP) ... Center for Cancer and Blood Disorders at Children’s National, and Stephen P. ...
Breaking Medicine News(10 mins):
(Date:10/10/2017)... COUNTY, Calif. , Oct. 10, 2017  NDS received FDA ... Mobile  — a medical-grade battery-powered display stand specifically designed for endoscopy ... to transform technology into a clinical solution to support the improvement ... Innovative Design ... ZeroWire Mobile Wireless Solution ...
(Date:10/7/2017)... Oct. 6, 2017   Provista, a proven ... $100 billion in purchasing power, today announced a new ... The Newsroom is the online home for ... infographics, expert bios, news releases, slideshows and events. ... a wealth of resources at their fingertips, viewers can ...
(Date:10/4/2017)... Korea , Oct. 4, 2017  South Korean-based ... next-generation CPR training aide "cprCUBE" on Kickstarter. The device ... compression during cardiac arrests with better efficiency compared to ... also offers real-time feedback on efficacy of the compression ... crowdfunding campaign has a goal to raise $5,000. ...
Breaking Medicine Technology: