Health Insurance Agent Jackson - Care Health Site United Web - Atlas De Anatomia Humana

1/6/2009
Tuesday morning

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The report came at a delicate time for the managed care industry, which is being encouraged by Congress to play an increasing role in serving the nations 38 million Medicare beneficiaries. Spokesmen for many HMOs have complained in recent months that the federal government did not pay them enough to care for Medicare patients, but this and other studies suggest that in some cases they have been paid too much.

Examining the financial records of HMOs with Medicare contracts in 1996, Brown found that Medicare paid 31.7 percent of their administrative expenses, but accounted for only 8.9 percent of their enrollment.

In short, she said, HMOs have received ``an unreasonable amount from Medicare because their administrative costs were grossly and artificially inflated, by a total of $3 billion to $4 billion in the three years of financial reports that she reviewed.

Medicare payments to HMOs have grown significantly, to $25.6 billion last year from $8.6 billion in 1993. The Congressional Budget Office predicts that 10 million beneficiaries, or 25 percent of the Medicare population, will be in HMOs by 2002.

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