STAT+: GOP aims to change Medicare adviser’s math so it’s more favorable to health insurers

At a House Ways and Means Committee markup on Wednesday, Republicans pushed forward a bill on a party-line vote that seeks to change how the Medicare Payment Advisory Commission studies Medicare Advantage spending. The legislation would direct MedPAC, a nonpartisan congressional advisory agency, to study the topic of overpayments to Medicare Advantage plans in a manner that is more favorable to insurers.

The bill arrives amid increased scrutiny of Medicare Advantage insurers over their cost to taxpayers. MedPAC estimated this year that Medicare will pay 14% more per enrollee, or $76 billion in total, to Medicare Advantage plans than it would if those same seniors were covered by traditional Medicare.

The committee action signals a partisan fight over how Medicare Advantage overpayments are measured and studied, with the outcome potentially affecting how taxpayers and insurers view the program’s costs.