Congressional Report: Medicare Advantage Overpayments Cost Seniors Billions

Jefferson City, Mo. (KFMO) - A new report from the bipartisan Joint Economic Committee says alleged overpayments to private Medicare Advantage plans cost seniors billions of dollars in higher premiums last year.

According to congressional investigators, the overpayments totaled about 13.4 billion dollars, resulting in the average Medicare beneficiary paying approximately 212 dollars more in premiums.

The report cites findings from a congressional watchdog that say Medicare Advantage plans often cost more than traditional Medicare because insurers receive higher payments for covering patients with more documented health conditions.

Investigators say insurance companies can increase reimbursements by adding additional diagnoses to patient records, which boosts the payments they receive from the federal government.

Lawmakers say the findings raise concerns about the oversight of Medicare Advantage and its impact on both taxpayers and seniors who rely on the program for health coverage.

Medicare Advantage plans are offered by private insurers but funded through the federal Medicare program. Enrollment in the plans has grown rapidly in recent years, with millions of seniors choosing them as an alternative to traditional Medicare coverage.