Republicans push bill to reshape Medicare Advantage cost study in favor of insurers
House Ways and Means Republicans approved a bill directing MedPAC to analyze Medicare Advantage spending with assumptions that benefit private insurers.
In a party-line vote, the House Ways and Means Committee passed legislation requiring the Medicare Payment Advisory Commission to conduct a new study of Medicare Advantage payments using a methodology more favorable to insurers. The move follows MedPAC's estimate that Medicare pays about 14% more per enrollee—roughly $76 billion—in Medicare Advantage than it would under traditional Medicare. Republicans say the change will improve the analysis, while critics view it as a concession to insurers.
Why it matters
The bill could change how Medicare costs are calculated, affecting taxpayer spending and private insurer profits.
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