Medicare Advantage Payment Changes to be Phased In by CMS.

The Biden administration has finalized new rules to reduce overbilling by private Medicare Advantage insurance plans, but softened the approach after intense lobbying by the industry. The changes will be phased in over three years, lessening the immediate effects. Private health plans will still be able to receive payments that Medicare officials do not consider appropriate. The extended timetable could mitigate concerns raised by health plans, doctors, and others that the broad policy change might result in unintended consequences, such as increases in premiums or reductions in benefits for Medicare Advantage beneficiaries.