CMS criticized for offsetting Medicare Advantage plan cuts

A report last week on Medicare Advantage plans criticized the Centers for Medicare & Medicaid Service (CMS) for improperly offsetting some cuts to the plans.

At issue is a provision in health care reform that was supposed to cut excessive Medicare Advantage payments by $68 billion by 2017, but the Government Accountability Office report noted that CMS has used a demonstration project to pay these plans $8.35 billion in bonuses to offset cuts.

“The Obama administration seems to be using a technicality to sidestep Congress and write itself a blank check to spend more money for political purposes leading into this year’s elections,” said Sen. Orrin Hatch, R-Utah, ranking Republican on the Senate Finance Committee. “The White House does not have the authority to green-light spending on whatever program it wants.”