Payments to insurers that provide Medicare Advantage plans are determined by a formula or algorithm. The Two hot words in healthcare today:
This is related to Medicare Advantage plans, which have been a huge source of profit and this could stand to see a number of carriers perhaps consider dropping out of the game in selected areas. The proposed changes are to in effect put more of the brunt of payment on the carriers and have a bidding situation for the government business. Oh those complicated algorithms that get sold, happens everywhere relative to health care insurance and it’s hard to tell what you do or do not have, and what the cost is, even at the government levels until the ledger or business intelligence software brings the figures to light. BD
As the Obama administration tries to pull together a $634 billion down payment on achieving universal health coverage, it has made clear that it wants the health-insurance industry to foot a large part of the bill.
President Barack Obama is expected to propose in his budget blueprint Thursday a mix of tax increases and health-care spending cuts to fund an ambitious health-care agenda. By far the biggest portion of proposed cuts, $177 billion over 10 years, would come from changing the way private-sector Medicare plans are paid by the government, according to a senior administration official.