Medicare Advantage Risk Adjustment is Failing: Billions Wasted, Seniors Disadvantaged

An analysis by ACHP shows that gaming within the Medicare Advantage program by large national carriers persists, wasting tens of billions of taxpayer dollars each year. 
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The higher the risk score, the more money paid to the insurer.

The gap isn’t a mistake; it’s the result of coders capitalizing on complexities in the program for financial gain. These wide variations stifle competition and leave tens of millions of consumers nationwide disadvantaged.  

Risk adjustment was a well-intentioned concept that has grown out of control and overrun with abuse. The current program presents thousands of ways for insurers and vendors to game the system, passing costs onto every Medicare consumer and American taxpayer. This is a failing system and the stark findings in our analysis prove this. We call on the Administration to make long-needed changes to simplify the risk adjustment model and root out waste and abuse.”  

– Ceci Connolly, ACHP President and CEO

CARE, NOT CODES: A Bold Plan for Simplifying Medicare Advantage Risk Adjustment

It’s time for change. By simplifying risk adjustment to focus on demographics and a small set of substantiated health conditions – instead of thousands of potential diagnoses – Medicare payments will reflect true patient care costs.

Under ACHP’s proposal, consumers benefit by having access to the plans that best meet their needs, rather than those with the glitziest marketing campaigns and other goodies that do not improve health. Providers benefit from less administrative burden, allowing them to focus on the patient and not paperwork. And taxpayers benefit by saving tens of billions of dollars every year in wasteful upcoding. 

Over the past two years, ACHP has spearheaded efforts to improve the popular Medicare Advantage program. Through its MA for Tomorrow initiative, ACHP has identified a range of commonsense proposals to secure and refine the Medicare Advantage program for future generations.  

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