Medicare Advantage overpayments to hit $76 billion this year| STAT

Bob Herman covers health insurance, government programs, hospitals, physicians, and other providers — reporting on how money influences those businesses and shapes what we all pay for care. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.

This year, the federal government is expected to pay 14% more to cover people in a Medicare Advantage plan than if those same people were enrolled in traditional Medicare — a $76 billion surplus for health insurance companies, the Medicare Payment Advisory Commission said in its new annual report released Thursday.

The group, known as MedPAC, is independent and advises Congress on Medicare. It has routinely highlighted overpayments to Medicare Advantage insurers. And it is now facing more pushback from industry groups, which are trying to undermine MedPAC’s credibility and pressure the Trump administration to increase the program’s funding.

Lobbying groups supported by insurance companies, such as the Better Medicare Alliance and the Healthcare Leadership Council, have criticized MedPAC’s reports and promoted their own. They have endorsed a recent Wall Street Journal editorial that, among other things, called for MedPAC to be defunded. And they have supported legislation that would dictate how the commission’s staff can conduct research.