Citing a congressional investigation, The Wall Street Journal reported on Tuesday that due to alleged overpayments to Medicare Advantage health plans, Medicare Part B premiums increased by $13.4 billion last year, with most of that cost borne by seniors.
Those additional costs affected beneficiaries of Medical Advantage plans as well as those enrolled in standard Medicare plans, according to the investigation conducted by the Joint Economic Committee.
The bipartisan group of lawmakers representing the Senate and the House is led by Rep. David Schweikert (R., Ariz.).
The committee found that the average American senior’s Medicare premiums rose about 10%, or more than $200 annually, due to the alleged overpayments last year.
The premium hike was partly attributed to a controversial tactic health insurers use to add payment-boosting diagnoses for Medicare Advantage members.
The additional spending on Medicare Advantage “is not just coming out of the federal government’s budget,” Schweikert said, adding, “A portion of this comes out of you.”
America’s Health Insurance Plans (AHIP), which represents health insurers, denied the allegations. The committee’s findings were based on “fundamentally flawed data, methodology, and extrapolations” and shouldn’t dictate policy, WSJ reported, citing a spokesperson for AHIP.
UnitedHealth (UNH) is the biggest player in the MA market, followed by Humana (HUM). CVS Health’s (CVS) Aetna unit, Clover Health (CLOV), and Alignment Healthcare (ALHC) are among other MA operators.