Private Insurance Companies Cost Medicare $34 Billion This Year

[Luminous Animal]

http://www.allgov.com/news/where-is-the-money-going/private-insurance-companies-cost-medicare-34-billion-this-year-121015?news=845951

According to a new study by Dr. Ida Hellander and two doctors from City University of New York School of Public Health at Hunter College, Steffie Woolhandler and David U. Himmelstein, “In 2012 alone, we estimate that private insurers are being overpaid $34.1 billion, $2,526 per MA enrollee, 6.2 percent of total Medicare spending this year.”



The three doctors, who are members of Physicians for a National Health Program, concluded that Medicare supplements aren’t helping the problem of providing care to elderly Americans. But they are draining the federal budget of enormous sums of money.



Private Medicare plans are used by 27% of Medicare enrollees. The biggest players in the plan are UnitedHealth and Humana, which account for one-third of the participants. Medicare pays these companies an average of $10,123 per person per year to cover anticipated hospital and doctor expenses. But the authors of the study have identified five ways in which health insurance companies increase their profits while the government pays.

[silverweb]

1. K&R

[DURHAM D]

2. WTF

•Medicare pays the insurance companies full benefits even a patient’s care is provided and paid for by the Veterans Administration, so the government ends up paying twice for the same treatment.


good lord - STOP IT

[JDPriestly]

6. In my family's experience, retired veterans are paying a lot to the VA for their healthcare.

The VA is not free for many seniors, but they provide good care.

[DURHAM D]

7. Well I am glad but that does not address the issue.

[kentuck]

3. kick

good info

[DURHAM D]

5. Confusing article.

"The biggest players in the plan are UnitedHealth and Humana, which account for one-third of the participants. Medicare pays these companies an average of $10,123 per person per year to cover anticipated hospital and doctor expenses. But the authors of the study have identified five ways in which health insurance companies increase their profits while the government pays."

I assume this refers to Medicare Advantage only.

The article seems to keep referring to Medicare Advantage plans as medicare supplementals. I find this confusing and I assume that must be by design.