What Health Insurance Corporations Do
When given a chance to operate the entire payment package, what do Health Insurance Companies (HICs) do? For the past 8 years HICs have been given the freedom to operate Medicare Advantage - the high prestige seniors plan from CMS. HICs helped design the complex payment formulas for MA HICs found a way to upcode higher patient complexity for MA patients HICs shoveled in the profits using the design that they helped to shape their way The Center for Public Integrity indicated, "For instance, audits of six plans found that health plans couldn’t justify payments from the government for 40 percent or more of their patients. The resulting overpayments were pegged at nearly $650 million for 2007 alone — just for those six plans." When is it "gaming the system" and when is the line crossed to fraud? The inconsistencies in HIC, GAO, and CMS efforts span the range of health care delivery. There is a pattern to the result. Some payment formulas benefit those with