August 23, 2021
Medicare Advantage Plans Cost Federal Government $7 Billion in 2019
A new report from the Kaiser Family Foundation shows that the private Medicare Advantage plans that some beneficiaries choose are costing the Medicare trust fund $7 billion, or $321 more per beneficiary than traditional Medicare for the same benefits.
In its 2022 budget, the Biden Administration expressed support for reforming payments to Medicare Advantage plans to help extend the solvency of the Medicare Trust fund and ensure that coverage is affordable for beneficiaries.
“Private insurance companies are making billions already, they should not be overcharging the government,” said Robert Roach, Jr., President of the Alliance. “Medicare Advantage plans were supposed to deliver services at a lower cost; the federal government should hold them to that commitment.”