At a hearing Wednesday, federal health officials pointed to billing errors, fraud and overcharges that led Medicare to overpay by staggering sums.
Medicare Advantage plans offer good value and aim to keep patients healthy but sicker people are far more likely to quit because they can’t get the care they need.
Freedom Health and Optimum HealthCare agreed to settle a lawsuit alleging they overbilled Medicare.
The company, which is the nation’s largest Medicare Advantage operator, denies wrongdoing and argues that the Justice Department “fundamentally misunderstands” how the Medicare Advantage works.
The powerful chairman of the Senate Judiciary Committee wants the Centers for Medicare and Medicaid Services to explain $125 million in overcharges by insurers.
The Department of Justice is joining a whistleblower lawsuit in a fraud case against UnitedHealth in which damages could top $1 billion.
Medicare overpaid five insurance plans by $128 million yet only recovered $3 million, audits show.