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Alleged overpayments to Medicare Advantage plans cost seniors billions: Investigation
Medicare Advantage plans were overpaid by 17–20% in 2025, adding over $200 per enrollee to premiums, which are projected to nearly double by 2035, affecting all seniors.
- On Tuesday, Joint Economic Committee investigators reported average American seniors faced about 10% higher Medicare Part B premiums last year due to alleged overpayments to Medicare Advantage plans.
- The committee found MA payment rules and insurer billing practices, including adding diagnoses, caused overpayments that increased Part B spending and premiums, based on MedPAC calculations.
- Investigators calculated Medicare Advantage insurers received $84 billion more in 2025, increasing Part B premiums by $212 per enrollee and totaling $13.4 billion in higher premiums.
- Under current law, Medicare Part B premiums cover 25 percent of expected costs, so any spending increase is passed to seniors as higher premiums typically deducted from Social Security benefits, Ryan said.
- Projections show per‑person Part B expenditures will nearly double from $9,100 in 2025 to over $18,000 in 2035, with premiums rising from about $2,200 to around $4,500, and $450 of the $5,000 premium caused by overpayments.
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Traditional Medicare Enrollees Paid Billions More in Premiums Due to MA Overpayments
(MedPage Today) -- Overpayments in Medicare Advantage (MA) plans led to higher premiums for the average Medicare enrollee, with $13.4 billion in added premium costs in 2025 alone, according to a bipartisan report from the Joint Economic Committee...
·New York, United States
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Coverage Details
Total News Sources7
Leaning Left0Leaning Right2Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
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