Medicare Advantage to Receive $11.4B in Extra Payments in 2009

A study by the Commonwealth Fund has found that private Medicare Advantage plans will be paid $11.4 billion more in 2009, and have been paid $43 billion more since 2004, than what the same beneficiaries would have cost the traditional Medicare fee-for-service program, according to a Commonwealth Fund news release.

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The study found that extra payments to Medicare Advantage plans will amount to an average of $1,138, or 13 percent over fee-for-service costs, for each of about 10 million Medicare beneficiaries enrolled in the plans. The $11.4 billion in extra payments for 2009 represents a 34 percent increase over 2008 payments, which totaled $8.5 billion.

The Congressional Budget Office estimates that bringing Medicare Advantage payments in line with traditional fee-for-service Medicare would save $157 billion over the next 10 years, according to the release.

Read the Commonwealth Fund’s release on the Medicare Advantage payment study.

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