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The Policy, and Politics, of Medicare Advantage

KFF Health News' 'What the Health?'

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The Biden Administration's Change to Medicare Advantage

The Biden administration has made a very technical change to the formula that pays these private plans extra money when they sign up patients who have serious medical diagnoses. This is of course a response to an earlier problem. It used to be that they just kind of got a flat fee for everyone that they signed up. That was about what it costs on average to take care of someone in Medicare. And what happened is that the plans then had a huge incentive to only sign up healthy people.

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