Yesterday, the Centers for Medicare and Medicaid Services (CMS) announced its decision to massively increase payment rates for insurers that provide privatized Medicare Advantage plans. The 5.06% rate increase is more than double what the Biden administration had proposed for next year. 

In response, Center for Economic and Policy Research (CEPR) Policy Coordinator Brandon Novick released the following statement: 

“Medicare Advantage companies – like UnitedHealthcare, Humana, Blue Cross Blue Shield, CVS/Aetna – annually rip off taxpayers by at least $80 billion and even as much as $140 billion. While House Republicans want to cut Medicaid by up to $88 billion per year, ending these overpayments to insurance giants would save at least the same amount of money, and would not require booting hardworking Americans off of their health insurance. 

“Congress created Medicare Advantage to lower costs and make Medicare more efficient. It has literally never saved taxpayers money. This move by the Trump Administration is like telling a thief who just took your wallet that they should also take the wad of cash hidden in your shoe. Make America Somehow Even More Wasteful Again.”