WASHINGTON — In response to the Biden administration’s new rules on payment rates and policies for Medicare Advantage plans starting in 2024, Health Care for America Now Executive Director Margarida Jorge released the following statement:
The Biden Administration is taking much-needed action to rein in rampant price gouging from insurers who are charging seniors and taxpayers more money for Medicare Advantage plans that provide worse care for patients.
For far too long, major insurance companies have collected billions in overcharged payments due to risk score errors and other loopholes in Medicare Advantage billing. The Biden Administration’s plan will make long-overdue updates to the risk adjustment system, reining in corporate abuses and saving taxpayers billions of dollars. By fixing outdated data coding systems, Medicare Advantage insurers will face more accountability for exploitative billing practices and cherry-picking their patients, which puts a burden on traditional Medicare and ends up costing more.
While Republicans are spreading false claims that the Biden Administration is cutting funding, the reality is that Medicare Advantage payments have seen major increases in recent years and will receive an additional $13.8 billion under this year’s rules. Meanwhile, Republicans have proposed repealing Inflation Reduction Act provisions that lower drug prices in Medicare and save patients money by limiting out-of-pocket costs. Instead of protecting corporate profits for insurers and drug corporations, Republicans should work with the Biden Administration to curb price gouging throughout Medicare and to level the playing field between Medicare Advantage private plans and traditional Medicare.