Medicare Could Have Saved $910M Under Private Rates
Medicare could have saved $910 million in 2011 if it had paid the lowest rate negotiated by private insurers for laboratory tests, according to HHS' Office of the Inspector General. OIG reviewed payments for 20 of the most common lab tests and found that Medicare paid between 18% and 44% more than state or private plans. The report recommended that Medicare reduce spending by requiring individuals in the fee-for-service system to pay copayments or deductibles for the lab tests, similar to many private and state programs.
- "Room for Savings Found in Medicare" (Schatz, Wall Street Journal, 6/11).