“Medicare spends an estimated 22 percent more for MA enrollees than it would spend if those beneficiaries were enrolled in [fee-for-service] Medicare, a difference that translates into a projected $83 billion in 2024,” MedPac revealed in its 2024 report to Congress.

MA refers to Medicare Advantage, the $455 billion program under which taxpayers cut in private health insurers as middlemen instead of insuring people directly. Fee-for-service Medicare is also known as original Medicare.

The excess cost of insuring senior citizens through private insurance companies was in the news again on Friday, with the Wall Street Journal reporting that healthcare giant UnitedHealth Group UNH was under investigation by the U.S. Department of Justice over its Medicare Advantage billing practices.

UnitedHealth, whose stock tanked nearly 10% on the news, furiously denounced the report as “misinformation” and as part of a “year-long campaign” to defend “legacy” government-run Medicare. “We are not aware of the ‘launch’ of any ‘new’ activity as reported by the Journal,” the company said in a statement. “Any suggestion that our practices are fraudulent is outrageous and false.”

https://www.yahoo.com/news/unitedhealth-medicare-advantage-bombshell-exposes-194700169.html

by coinfanking

11 comments

  2. >MedPac didn’t say the industry was doing anything illegal or even wrong by charging the taxpayers an extra $83 billion. It just noted the amount.

    Well then, they didn’t cover the story then. They forgit to mention that perhaps a bit of Citizens United shapes congressional legislation towards health care. MA has its proponents, from Chuck Schumer to Mitch McConnell.

    That said, I am on UHC MA, and have been for years, and so far, the plan performs satisfactorily. I think having the PCP manage my care is going to beat me managing my care.

  5. Original Medicare leave its users with HUGE out of pocket costs. First there is a a $1,676 deductible per year, then you pay 20% of everything else, for example if you need a $60,000 operation and that is not hard to do, you owe $12,000 and there is NO out-of-pocket maximum under original Medicare,

    I have United Healthcare Medicare Advantage and I have NO deductible, all my co pays are less than 20% and once I spend $5000 out of my pocket in a year the remainder of that year’s health is covered 100%.

    The same $60,000 operation referenced above would, instead of $12,000, cost me $5,000 and from that point forward for the rest of the year everything else is covered at 100% but the Medicare original user, after paying $12000, thy will continue to pay 20% of everything that comes after that.

    That is why people chose an advantage plan because they are what Medicare should be

  6. The way to go is traditional Medicare with a secondary from a private company like BCBS, UHC, Aetna, etc. the secondary covers the remaining 20%. This way there are no out of pocket expenses except your premiums.

  8. This will be interesting. Reddit hates United healthcare, but also hates finding waste in the government.

  9. Government waste – or structural inefficiency and sanctioned corporate greed as result of lobbyists and politicians (or both!)?

    Eh hem – looking at you “(law) making it illegal to negotiate drug prices.

  11. The name dept of justice is just a gimmick.

    This announcement is just to make Americans feel like the government is doing justice. It’s a PR stunt.

    The next step is to ignore until most Americans forget about it.

    That and UHC will just pay off some politicians to shut this investigation down.

    These government agencies were created to manage the peasants not the rich or rich corporations.

Comments are closed.