tci Medicare Compliance & Reimbursement - 2006 Issue 44

MEDICARE ~ Why Medicare Advantage Is Costing Billions More Than Traditional FFS

Mandated extra MA payments may be dragging down the entire program. The federal government shelled out more than $5.2 billion in extra payments to Medicare Advantage (MA) plans over what it paid for traditional Medicare fee-for-service (FFS) plans, a new report reveals. This staggering amount of extra costs for Medicare could have government officials re-thinking the mandates in the Medicare Modernization Act of 2003 that created the extra-payment provision for MA plans.Extra payments to MA plans were $922 more than FFS costs for each of the approximately 5.6 million MA beneficiaries -- which is an average...

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