Friday, February 3, 2023

Statement on Recent Medicare Advantage Payment Policies and Proposals

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Statement on Recent Medicare Advantage Payment
Policies and Proposals

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A Step in the Right Direction, But Not Enough
to Stem Wasteful Overpayments

As documented in various CMA Alerts, there is consistent and growing evidence that Medicare Advantage (MA) plans are paid more on average than traditional Medicare spends on a given beneficiary, and such spending is growing per person, with significant implications for Medicare programmatic spending (see, e.g., here and here). These overpayments stem, in part, from MA plans “upcoding” – reporting their enrollees as being more sick or requiring more intense levels of care than their medical records support in order to receive higher risk-adjusted payment.

Over the last week, the Centers for Medicare & Medicaid Services (CMS) issued long-awaited rules concerning audits of MA plan payments, as well as proposed MA plan payment rates for 2024. Together, these actions reflect an effort to both acknowledge and confront excessive payment to MA plans, but do these actions fall short? Will they be enough to stem the tide of wasteful payments that could otherwise be used to shore up Medicare’s solvency and expand benefits and coverage for all Medicare beneficiaries?


The Center for Medicare Advocacy (http://www.medicareadvocacy.org) is a national, non-profit, law organization that works to advance access to comprehensive Medicare coverage, health equity, and quality health care for older people and people with disabilities. Founded in 1986, the Center focuses on the needs of people with longer-term and chronic conditions. The organization’s work includes legal assistance, advocacy, education, analysis, policy initiatives, and litigation of importance to Medicare beneficiaries nationwide. Our systemic advocacy is based on the experiences of the real people who contact the Center every day. Headquartered in Connecticut and Washington, DC, the Center also has attorneys in CA, MA, and NJ.


Center for Medicare Advocacy, Inc. • www.MedicareAdvocacy.org • PO Box 350, Willimantic, CT 06226 • 1025 CT Ave. NW, Washington, DC 20036 


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