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GAO: Low-Cost Medicare Advantage Programs Have High-Cost Expenses
Health Leaders Media

A number of Medicare Advantage plans that attracted beneficiaries in “good health” with lower cost plans in 2008 had far higher levels of cost sharing and unexpected expenses than those plans attracting beneficiaries in “poor health,” according to a Government Accountability Office (GAO) report. Acting CMS Administrator Charlene Frizzera, in response to the report’s findings, said they were consistent with CMS’ general experience that “beneficiaries select health plans based on their individual health status”—that beneficiaries with “poorer health status tend to choose plans with higher premiums and lower cost sharing.”

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