Private Medicare Plans' Cost Questioned
Source: By ROBERT PEAR, New York Times, February 28, 2008
Private Medicare plans often cost beneficiaries more than the traditional government-run Medicare program, Congressional investigators say. Many private plans advertise extra benefits and low costs.
But in a report to be issued Thursday, the Government Accountability Office, an investigative arm of Congress, says that many people in private plans face higher costs for home health care, nursing homes and some hospital stays. About one-fifth of the 44 million Medicare beneficiaries -- 9 million people -- are in private plans, known as Medicare Advantage plans.
Related testimony from GAO: Medicare Advantage: Higher Spending Relative to Medicare Fee-for-Service May Not Ensure Lower Out-of-Pocket Costs for Beneficiaries