Health Insurance Company - Care Claim Health United - Golden Rule Ins

1/6/2009
Tuesday morning

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HMOs say that if the government cuts their payments for administrative and other costs, it will be more difficult for them to offer extra benefits, like eye care and prescription drug coverage, which have attracted elderly people in the past.

``Medicare is paying a disproportionate share of HMOs administrative costs -- much more than its ``fair share -- and the government should try to recover the excess payments, the inspector general of the Department of Health and Human Services said in a new report.

HMOs get a fixed monthly payment, set in advance, for each Medicare patient. The payments are based mainly on data that HMOs submit to the government. Brown said many HMOs were ``aware that the amounts that they submit for administration are inaccurate and result in unjustified expenditures of Medicare funds.