News Headlines Article

Insurers profit on Medicare float
San Francisco Chronicle

Private health insurance plans catering to Medicare recipients are making millions by taking money the government sends in advance — but isn’t immediately needed — and using it to make investments, federal investigators say in a report obtained by The Associated Press.

In financial parlance, it’s called “playing the float.”

In contrast with another government program that also deals regularly with health insurers, Medicare lets its plans keep the cash.