Hidden audits reveal millions in overcharges by Medicare Advantage plans

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Hidden audits reveal millions in overcharges by Medicare Advantage plans
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Taxpayers footed the bill for care that should have cost far less, according to records released under the Freedom of Information Act. The U.S. government may charge insurers $650 million as a result.

Eric Harkleroad/KHN /Getty Images/ Unsplash/ Centers for Medicare & Medicaid Services Data

Officials at the Centers for Medicare & Medicaid Services have said they intend to extrapolate the payment error rates from those samples across the total membership of each plan — and recoup an estimated $650 million from insurers as a result. Corrigan declined to say when the agency would finish its work."We have a fiduciary and statutory duty to address improper payments in all of our programs," she said.The 90 audits are the only ones CMS has completed over the past decade, a time when Medicare Advantage has grown explosively. Enrollment in the plansduring that period, passing 28 million in 2022, at a cost to the government of $427 billion.

That happened on average for just over 20% of medical conditions examined over the three-year period; rates of unconfirmed diseases were higher in some plans.

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