Aetna Group Health Insurance - Golden Rule Medical Insurance - Health Insurance Provider In F

1/6/2009
Tuesday morning

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``We have received reports that some HMOs have reduced benefit levels and increased premiums for Medicare patients this year, she said, and ``it is possible that beneficiaries will again experience reduced benefit levels in 1999.

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.

Nancy-Ann Min DeParle, administrator of the Health Care Financing Administration, which runs Medicare, responded that her agency was making changes to reduce overpayments in the future. But in a written response to the inspector general, DeParle disagreed with the recommendation that she seek legislation allowing Medicare to recover the excess payments. In effect, she said, the overpayments help HMOs finance extra benefits for Medicare patients, and this is apparently what Congress intended.