The Biden administration's Medicare Advantage payment rule weighs complicated tradeoffs

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The Biden administration's Medicare Advantage payment rule weighs complicated tradeoffs
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MA plans are more generous, but also more expensive than traditional Medicare.

, growing to now serve nearly half of the eligible population, per KFF. Insurers report higher gross margins per enrollee in MA markets than in other coverage lines.initial version of the rule, released in February, prompted significant pushback from insurers, who warned that the proposal would have a harmful impact on beneficiaries.about unintended consequences for seniors.

Many experts still think the original version didn't go far enough in reining in insurers' costly billing practices, and worry the finalized policy amounts to a win for an industry that's gaming the system. Under the extended phase-in of the new payment structure, plans have more time "to exploit the flawed system," Mark Miller, executive vice president at Arnold Ventures. "Congress and the administration need to come together and address abuses in the Medicare program."In reality, there's a direct link between how much money MA plans receive from the government and how generous benefits are.

"Payments to MA plans have increasingly been used to provide an indirect subsidy to offer expanded benefits for MA enrollees," MedPAC wrote in itsAt the same time, MA plan enrollees cost the government 6% more than it spends on seniors enrolled in traditional Medicare — a projected $27 billion in 2023, per MedPAC.

The most commonly offered supplemental benefits in 2022 included dental and vision coverage and in-home support services,The intrigue:

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