Medicare Advantage overpayments may exceed $75 billion in 2023 due to favorable selection of Medicare Advantage plans

Statistic Info

This puts the already beleaguered Medicare program in a vulnerable position, both for beneficiaries and providers. Favorable selection occurs when healthier individuals join a plan and the sicker members leave it, resulting in higher costs to cover those left that need more care. It also creates inequity between those who are healthy enough to find a better deal with another type of coverage, versus those with chronic conditions that require a more comprehensive plan.

Author: HealthPayerIntelligence