tci Medicare Compliance & Reimbursement - 2007 Issue 16

HEALTH INSURERS: Watch Your MA Plans' Pay -- Congress Is Sharpening Its Axe

CBO, MedPAC eyes your reimbursement as revenue source.Heads up, Medicare Advantage (MA) plan administrators: You need to start playing defense now to fight against potentially monumental cuts in your reimbursement during the next federal budget cycle.Congress is already looking ahead to draft a budget for FY 2008, which begins Oct. 1. And it's taking note of a recent Congressional Budget Office (CBO) report that says the federal government can save upwards of $65 billion between 2008 and 2012 by taking one simple but substantial step: reducing pay to MA plans to 100 percent of fee-for-service (FFS) payments...

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