GAO analysis finds Medicare Advantage plans being overpaid

An analysis released by the Government Accountability Office last week found that the Centers for Medicare & Medicaid Services overpaid Medicare Advantage plans between $1.2 and $3.1 billion in 2010. At issue is the formula for calculating monthly capitation rates, which is based upon diagnostic sampling. The GAO report found that Medicare Advantage plans were reporting greater levels of disease severity than what was being reported by fee-for-service beneficiaries.