WSJ Goes After Insurers' Medicare Advantage Strategy

News January 02, 2025 at 02:30 PM
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The Wall Street Journal reported this week on how insurers like UnitedHealth maximized Medicare Advantage plan reimbursement revenue from 2016 through 2023.

A team followed up on reports from agencies like the U.S. Government Accountability Office and lawmakers like Sen. Elizabeth Warren, D-Mass. They added their own colorful anecdotes to flesh out allegations that insurers get billions of dollars in extra payments by making patients look sicker than they are.

In an article published Tuesday, the team presented accounts of doctors classifying patients who were in good shape as morbidly obese and classifying a patient who had slightly slow, aspirin-affected blood clotting as having qualitative platelet disorder, a rare blood clotting disorder.

UnitedHealth representatives were not immediately available to comment on the article.

Critics of Medicare Advantage plans contend that some insurers manipulate a Medicare Advantage program mechanism that provides higher payments for higher-risk enrollees by making aggressive, sometimes dishonest efforts to indicate that ordinary enrollees are seriously ill.

Earlier in the year, the Wall Street Journal published accounts of insurers getting "$50 billion from Medicare for disease no doctors treated," such as cases of "diabetic cataracts" in patients without diabetes, and "one-hour nurse visits that let insurers collect $15 billion from Medicare," or efforts to use home visits by nurses to create comprehensive lists of enrollees' health problems.

The latest major article in the package appears as insurers, brokers and interested observers are waiting eagerly for the final sales numbers for the Medicare Advantage annual enrollment period for 2025 coverage, which ended Dec. 7. At press time, the latest available enrollment numbers were for September 2024.

The Centers for Medicare and Medicaid Services applied tougher quality grading standards for 2025 and tightened reimbursement rules, in part because of the kinds of allegations covered in the Wall Street Journal articles.

Insurers responded by trimming Medicare Advantage benefits, reducing the number of individual plans by 6.5%, and, in some cases, cutting agent sales commissions to zero as the enrollment period was already underway.

The Better Medicare Alliance, a group for Medicare Advantage plan companies and Medicare Advantage program supporters, argued that the critics are ignoring the good that initiatives such as the in-home nurse assessments do.

"For example," the group said, "Medicare Advantage beneficiaries with prediabetes who develop type 2 diabetes are diagnosed, on average, nearly five months earlier than similar [fee-for-service] beneficiaries."

In-home assessments may also improve care quality, and plan members who've had them are less likely than other Medicare enrollees to end up in the hospital with conditions such as high blood pressure, the group said.

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