• Center on Health Equity & Access
  • Clinical
  • Health Care Cost
  • Health Care Delivery
  • Insurance
  • Policy
  • Technology
  • Value-Based Care

GAO: Medicare Overpaying for Medicare Advantage

Article

A study by the Government Accountability Office finds differences in diagnostic coding between Medicare Advantage plans and traditional Medicare fee-for-service coverage.

These differences mean that Medicare Advantage beneficiary risk scores in 2010 were 4.8 percent to 7.1 percent higher than if those beneficiaries were continuously enrolled in fee-for-service, according to GAO, a congressional investigatory agency. And the higher scores translated in 2010 to $3.9 billion to $5.8 billion in higher payments to Medicare Advantage plans. Further, the coding differences increase over time, suggesting higher financial impacts in 2011 and 2012.

CMS estimates a lower level, 3.4 percent, of higher beneficiary risk scores in Medicare Advantage plans, translating to $2.7 billion in excess payments. GAO contends the CMS methodology does not include more current data, trending coding differences over time, or accounting for such characteristics as sex, health status, Medicaid enrollment status, beneficiary residential location, and disability.

Read more at:http://tinyurl.com/6t65zft

Source: Health Data Management

Related Videos
Ciara Zachary, PhD, MPH
William Schpero, PhD, MPhil, MPH
Jonathan Strober, MD, Benioff Children's Hospital
Adam Brufsky, MD, PhD
Ciara Zachary, PhD, MPH
Dr Xiaoxi Zhao
Oncology experts at PCOC
Dr Xiaoxi Zhao
UPMC Title Slide Open | Image Credit: © Notebook and Maggie Shaw
Related Content
© 2025 MJH Life Sciences
AJMC®
All rights reserved.