If the federal government hoped Medicare Advantage plans would reduce the costs of care, that has not been the result. Medicare pays the plans 6 p.c more than it might spend if plan enrollees were lined under common, fee-for-service Medicare, the MedPAC report found. Medicare payments to the plans will complete $27 billion extra in 2023 than if patients have been enrolled in traditional Medicare, the report projected. Some 31 million Americans have Medicare Advantage plans, private-sector options to Medicare introduced in 2003 by Congress to encourage greater effectivity in health care.
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